Eastern Cape - The Home of Renewable Energy Manufacturing?
Eastern Cape - The Home of Renewable Energy Manufacturing?
Eastern Cape - The Home of Renewable Energy Manufacturing?
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<strong>Eastern</strong> <strong>Cape</strong> - <strong>The</strong> <strong>Home</strong> <strong>of</strong> <strong>Renewable</strong><br />
<strong>Energy</strong> <strong>Manufacturing</strong>
Positioning the <strong>Eastern</strong> <strong>Cape</strong><br />
Wind (Eskom Applications) 3 594 Planned Turbines 8 312 MW<br />
Wind (Eskom Quotes) 1 701 Turbines (est) 4 253 MW<br />
Approved REFIT 1 188 Turbines (est) 469.7 MW
Positioning the <strong>Eastern</strong> <strong>Cape</strong><br />
Solar (Eskom Quotes) 1 980 000 Planned PV Panels (est) 495 MW
Positioning the <strong>Eastern</strong> <strong>Cape</strong><br />
Biogas 2 Planned Turbines 30 MW
What to Manufacture<br />
• Solar, wind, biomass, biogas, others<br />
• Full manufacturing, components or assembly<br />
• Immediate demand, anticipated and future<br />
demands<br />
• Volumes<br />
• Competitiveness <strong>of</strong> products<br />
• Ability to manufacture (skills)
Which RE Technology to Focus on<br />
(Immediate Needs)<br />
Solar<br />
• PV module manufacturing<br />
• Module assembly<br />
• Racking systems<br />
• Glass<br />
• Aluminium Framing<br />
• PC Boards<br />
• Module backing<br />
Wind<br />
• Towers<br />
• Blades<br />
• Drive shaft<br />
• Gearbox<br />
• Generators<br />
• Hydraulic breaking<br />
systems<br />
• Pitch and yaw controls<br />
Biogas<br />
• Plastic rotational<br />
moulding products<br />
• Piping (plastic and<br />
copper)<br />
• Accessories i.e. biogas<br />
stoves, toilet systems,<br />
heaters, etc
Common Components for all Technologies<br />
Inverters<br />
• Currently fully imported<br />
Transformers<br />
• Only two local suppliers<br />
with limited capacity<br />
Other<br />
• Substation upgrades<br />
• Electrical wiring<br />
• Battery storage<br />
• Control and switching gear<br />
• Metering<br />
• Combiner boxes
Ancillary Items that add to Local Content<br />
Consulting<br />
• Environmental impact<br />
studies<br />
• Socio-economic studies<br />
• Engineering services<br />
• Electrical services<br />
• Legal<br />
Physical Site<br />
• Physical buildings<br />
• Security services<br />
• Construction<br />
• Fencing<br />
• Roads and Access<br />
O & M<br />
• Daily monitoring operations<br />
• Cleaning team<br />
• Maintenance crew<br />
• R&D<br />
• Training
What is the Demand and Volume<br />
Immediate Demand from REFIT<br />
Technology Allocated MW Required Units<br />
Solar PV 1 450 5 800 000<br />
Wind 1 850 740<br />
Biogas 12.5 1<br />
Domestic and Commercial Demand<br />
Technology Domestic Commercial<br />
Solar PV<br />
Wind<br />
>800 000 non-electrified<br />
houses<br />
>800 000 non-electrified<br />
houses<br />
Biogas More than 800 000<br />
households without flush<br />
toilets<br />
Not researched yet<br />
Not researched yet<br />
Not researched yet
What is the Demand and Volume<br />
Preferred Bidders for REFIT<br />
Project Bidder Name Technology<br />
Net<br />
Capacity Location Province<br />
Dassiesklip Wind <strong>Energy</strong> Facility Klipheuwel - Dassiefontein Wind <strong>Energy</strong> Facility (Proprietary) Limited Onshore Wind 26.2 Caledon, Western <strong>Cape</strong> Western <strong>Cape</strong><br />
MetroWind Van Stadens Wind Farm MetroWind (Pty) Ltd Onshore Wind 26.2 Port Elizabeth <strong>Eastern</strong> <strong>Cape</strong> <strong>Eastern</strong> <strong>Cape</strong><br />
Hopefield Wind Farm Umoya <strong>Energy</strong> (Pty) Ltd Onshore Wind 65.4 Hopefield, Western <strong>Cape</strong> Western <strong>Cape</strong><br />
Noblesfontein Coria (PKF) Investments 28 (Proprietary) Limited Onshore Wind 72.8 Noblesfontein, Northern <strong>Cape</strong> Northern <strong>Cape</strong><br />
Red Cap Kouga Wind Farm - Oyster Bay Red Cap Kouga Wind Farm (Pty) Ltd Onshore Wind 77.6 Port Elizabeth, <strong>Eastern</strong> <strong>Cape</strong> <strong>Eastern</strong> <strong>Cape</strong><br />
Dorper Wind Farm Dorper Wind Farm (Pty) Ltd Onshore Wind 97.0 Stormberg, <strong>Eastern</strong> <strong>Cape</strong> <strong>Eastern</strong> <strong>Cape</strong><br />
Jeffreys Bay South Africa Mainstream <strong>Renewable</strong> Power Jeffreys Bay pty Limited Onshore Wind 133.9 Jeffereys Bay, <strong>Eastern</strong> <strong>Cape</strong> <strong>Eastern</strong> <strong>Cape</strong><br />
Cookhouse Wind Farm African Clean <strong>Energy</strong> Developments Onshore Wind 135.0 Cookhouse, <strong>Eastern</strong> <strong>Cape</strong> <strong>Eastern</strong> <strong>Cape</strong><br />
Khi Solar One Khi Solar One Consortium Solar CSP 50.0 Upington, Northern <strong>Cape</strong> Northern <strong>Cape</strong><br />
KaXu Solar One KaXu Solar One Consortium Solar CSP 100.0 P<strong>of</strong>adder, Northern <strong>Cape</strong> Northern <strong>Cape</strong><br />
SlimSun Swartland Solar Park SlimSun Solar Photovoltaic 5.0 Swartland, Western <strong>Cape</strong> Western <strong>Cape</strong><br />
RustMo1 Solar Farm RustMo1 Solar Farm Solar Photovoltaic 6.8 Rustenburg, North-West Province North-West Province<br />
Mulilo <strong>Renewable</strong> <strong>Energy</strong> Solar PV De Aar Gestamp Mulilo Consortium Solar Photovoltaic 9.7 De Aar, Northern <strong>Cape</strong> Northern <strong>Cape</strong><br />
Konkoonsies Solar Limarco 77 (Pty) Ltd Solar Photovoltaic 9.7 P<strong>of</strong>adder, Northern <strong>Cape</strong> Northern <strong>Cape</strong><br />
Aries Solar Sevenstones 159 (Pty.) Ltd. Solar Photovoltaic 9.7 Kenhardt, Northern <strong>Cape</strong> Northern <strong>Cape</strong><br />
Greefspan PV Power Plant AE-AMD Independent Power Producer 1 (Pty) Ltd Solar Photovoltaic 10.0 Douglas, Northern <strong>Cape</strong> Northern <strong>Cape</strong><br />
Herbert PV Power Plant AE-AMD Independent Power Producer 1 (Pty) Ltd Solar Photovoltaic 19.9 Douglas, Northern <strong>Cape</strong> Northern <strong>Cape</strong><br />
Mulilo <strong>Renewable</strong> <strong>Energy</strong> Solar PV Prieska Gestamp Mulilo Consortium Solar Photovoltaic 19.9 Prieska, Northern <strong>Cape</strong> Northern <strong>Cape</strong><br />
Soutpan Solar Park Erika <strong>Energy</strong> (Pty) Ltd Solar Photovoltaic 28.0 Waterberg, Limpopo Limpopo<br />
Witkop Solar Park Core <strong>Energy</strong> (Pty) Ltd Solar Photovoltaic 30.0 Waterberg, Limpopo Limpopo<br />
Touwsrivier Project CPV Power Plant No. 1 Solar Photovoltaic 36.0 Touwsrivier, Western <strong>Cape</strong> Western <strong>Cape</strong><br />
De Aar Solar PV South Africa Mainstream <strong>Renewable</strong> Power De Aar PV (Pty) Ltd Solar Photovoltaic 48.3 Pixley Ka seme, Northern <strong>Cape</strong> Northern <strong>Cape</strong><br />
South Africa Mainstream <strong>Renewable</strong><br />
Power Droogfontein<br />
South Africa Mainstream <strong>Renewable</strong> Power Droogfontein (Proprietary)<br />
Ltd Solar Photovoltaic 48.3 Kimberley, Northern <strong>Cape</strong> Northern <strong>Cape</strong><br />
Consortium consisting <strong>of</strong> Kensani Capital Investments (Pty) Ltd,<br />
SolarReserve South Africa (Pty) Ltd and Oakleaf Investment Holdings 80<br />
Letsatsi Power Company<br />
(Pty) Ltd Solar Photovoltaic 64.0 Bloemfontein, Free State Free State<br />
Lesedi Power Company<br />
Consortium consisting <strong>of</strong> SolarReserve South Africa (Pty) Ltd, Kensani<br />
Capital Investments (Pty) Ltd and Oakleaf Investment Holdings 80 (Pty)<br />
Ltd Solar Photovoltaic 64.0 Postmasburg, Northern <strong>Cape</strong> Northern <strong>Cape</strong><br />
Kalkbult Scatec Solar Solar Photovoltaic 72.5 North-West Province North-West Province<br />
Kathu Solar <strong>Energy</strong> Facility Lokian Trading & Investments (Pty) Limited Solar Photovoltaic 75.0 Kathu, Northern <strong>Cape</strong> Northern <strong>Cape</strong><br />
Solar Capital De Aar (Pty) Ltd Solar Capital De Aar (Pty) Ltd Solar Photovoltaic 75.0 De Aar, Northern <strong>Cape</strong> Northern <strong>Cape</strong>
What is the Demand and Volume<br />
SADC Demand for <strong>Renewable</strong> Technologies<br />
• Mozambique targets (not dates specified)<br />
• 2 000MW from solar, wind and hydro each<br />
• Installation <strong>of</strong> 50 000 PV systems for lighting<br />
• Installation <strong>of</strong> 1 000 biodigesters<br />
• Installation 100 000 solar geysers<br />
• Namibia<br />
• Non-hydro renewable capacity <strong>of</strong> 40MW by end <strong>of</strong> 2011<br />
• Other SADC Countries with <strong>Renewable</strong> Goals<br />
• Botswana<br />
• DRC<br />
• Lesotho<br />
• Madagascar<br />
• Malawi<br />
• Mauritius<br />
• Seychelles<br />
• Swaziland<br />
• Tanzania<br />
• Zambia<br />
• Zimbabwe
How Could <strong>Manufacturing</strong> Start<br />
• Clustering Concept<br />
Suzhou Industrial Park Example<br />
• Initiate skills training and development<br />
• Increase R&D activity and encourage small assembly<br />
• Patent creation and attraction <strong>of</strong> venture capital<br />
• Growing nucleus <strong>of</strong> component suppliers<br />
• Economies <strong>of</strong> scale attract anchor OEM tenant<br />
• Competitors <strong>of</strong> tenant locate due to same suppliers<br />
• Deepening <strong>of</strong> R&D and increase in innovation<br />
• Continued attraction <strong>of</strong> OEMs
Who Should Manufacture and<br />
Where<br />
• JV Partners who could diversify into the RE sector must be<br />
identified<br />
• Universities and skills centres to start the training process together<br />
with R&D<br />
• IDZ’s can be utilised to create clusters as well as provide incentives<br />
• Provincial co-operation to be encouraged until areas are sustainable<br />
and able to compete<br />
• But, Coega is well positioned to export large goods such as towers<br />
and blades, whilst East London could focus more on solar PV<br />
because <strong>of</strong> location, developments in the area, and access to raw<br />
materials
Risks and Uncertainty<br />
• Cost <strong>of</strong> business (electricity, labour, etc)<br />
• Small local market (location to market)<br />
• Licensing issues<br />
• Lack <strong>of</strong> technology<br />
• Lack <strong>of</strong> skills<br />
• High global competition
How to go About This<br />
• Potential Manufacturer Database<br />
• Linking to existing manufacturing<br />
• Start skilling up<br />
• Increased dialogue with Provincial <strong>Energy</strong> Strategy and the<br />
Provincial Industrial Development Strategy 2012 (which has<br />
identified Green Industry as a key investment opportunity)<br />
• Working with Universities, R&D and Innovation Platforms, i.e.<br />
the NMMU and ELIDZ Science & Technology Parks for<br />
incubation<br />
• Start the cluster and create an attractive environment for<br />
investment
Thanks!
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