Renewable energy

The Western Cape is leading the way in alternative energy

In terms of renewable energy, the Western Cape is considered a leader in the renewable energy sector, being the first province to have a Sustainable Energy Strategy and a Policy for Solar Water Heaters in place. To ease the strain on energy demand currently, the province has set itself renewable energy targets of 15% by 2014.

The Provincial Government aims to save 500MW per day by installing 1,000 large-scale solar geysers in public buildings. It also plans to deliver 100,000 small heaters to houses across the province.

Due to the core competency of boat building in the Western Cape, the province finds itself at an advantage, since a large amount of the technical skills and mouldmaking used in boat building is used in wind turbine manufacturing.

The South African Government has recently released the Bid Proposal Documents for a bouquet of renewable energy projects in the country. The announcement of the successful bidders will be announced in November.

The Industry in Numbers:

• The country’s two demonstration sites are both situated in the Western Cape at Darling and Klipheuwel, with a proposed third wind farm in Koekenaap (100MW)
• Initial investments with component manufacturers such as Solaire Direct and Tenesol indicate that the Western Cape is a key market for growth in renewable energy
• It is estimated that the market will grow by between 4 to 6% p.a. over the next five years (2010 to 2015) as the successful projects are announced in late 2011
• Foreign Direct Investment in the sector reached ZAR24.5bn between 2004 and 2011

Main Advantages of Investing in the Western Cape in Renewable Energy

• Cape Town is considered a cost-competitive location for solar panel manufacturing when compared to leading locations in Europe – a typical 150 person Solar Panel Manufacturing Plant will cost approximately USD 4m per annum in Cape Town – a saving of USD 7-11m per annum compared to Dublin, and an average cost saving of USD7.7m across selected locations
• Wind resources in the Western Cape are substantial – among the best in the country with the average wind speed as measured across the Province is 6m/s
• Initial assessments show it will be possible to generate 2,800 MW of wind energy in the province – almost half of the planned energy projects in wind
• Wave power is another high potential energy resource for the Western Cape

Incentives

The National Energy Regulators of South Africa, NERSA, has approved the Renewable Energy Feed in Tariff (REFIT) which welcomes energy generators in the renewable energy sector to undertake investment opportunities in the following sectors:

• Wind Energy Generation
• Small Scale Hydro
• Landfill Gas
• Concentrated Solar

In addition, Eskom, the national energy provider for South Africa offers some incentives and rebates on solar water heater installations. For more information, please click here to be directed to our incentive brochure, or alternatively contact the portfolio manager listed below.

Contacts

For further information, please contact the Portfolio Manager below:

• Karabo Maelane, Email: Karabo@wesgro.co.za

Tel: +27 (0)21 487 8600