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433369666-The-Case-for-Investing-in-South-Africa

South Africa's investment proposal

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GREEN INFRASTRUCTURE<br />

INVESTMENT OPPORTUNITIES<br />

• <strong>South</strong> <strong>Africa</strong> is committed to <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> the<br />

green<strong>in</strong>g of its economy, with a strategic focus on:<br />

- Renewable/alternative energy;<br />

- Improved energy efficiencies;<br />

- Emissions/pollution mitigation;<br />

- Natural resource management.<br />

• <strong>The</strong> country is roll<strong>in</strong>g out an Integrated Energy<br />

Plan (IEP) to address energy requirements go<strong>in</strong>g<br />

<strong>for</strong>ward, <strong>in</strong>clud<strong>in</strong>g electricity and liquid fuels.<br />

• <strong>The</strong> anticipated <strong>in</strong>vestment <strong>in</strong> renewable energy<br />

alone is estimated at ZAR209.7-billion, of which<br />

ZAR41.8-billion from <strong>for</strong>eign <strong>in</strong>vestors and<br />

f<strong>in</strong>anciers.<br />

• W<strong>in</strong>d and solar technologies have been attract<strong>in</strong>g<br />

the most <strong>in</strong>terest due to their relatively mature<br />

stage of development and <strong>South</strong> <strong>Africa</strong>’s plentiful<br />

solar and w<strong>in</strong>d resources.<br />

• Renewable energy projects added 3 976 MW<br />

of electricity generation capacity to the national<br />

grid, while a total of 6 422 MW has already been<br />

procured through seven bid rounds.<br />

• <strong>The</strong> 62 projects operational <strong>for</strong> more than 12<br />

months generated an estimated 10 648 GwH<br />

over the period April 2018 to March 2019, equal<br />

to 96% of the energy contribution projection from<br />

these projects <strong>for</strong> the period, with 28 projects<br />

exceed<strong>in</strong>g their energy contribution projections.<br />

• S<strong>in</strong>ce <strong>in</strong>ception, renewable energy generation has<br />

avoided an estimated 36.2-million tons of carbon<br />

emissions and water sav<strong>in</strong>gs of 42.8-million<br />

kiloliters.<br />

• More renewable energy projects are expected<br />

to be rolled out, given government’s <strong>in</strong>tention<br />

to procure some 22 876 MW <strong>in</strong> <strong>South</strong> <strong>Africa</strong>’s<br />

transition to a low-carbon economy.<br />

• <strong>The</strong> roll-out of renewable energy and energy<br />

efficiency technologies is lead<strong>in</strong>g to <strong>in</strong>creas<strong>in</strong>g<br />

demand <strong>for</strong> numerous components. Although<br />

SA’s <strong>in</strong>dustrial base can accommodate some of<br />

the procurement needs, new <strong>in</strong>dustries are be<strong>in</strong>g/<br />

will be established to cater <strong>for</strong> ris<strong>in</strong>g demand,<br />

<strong>in</strong>clud<strong>in</strong>g the production of associated items (e.g.<br />

solar/w<strong>in</strong>d energy technologies and components).<br />

2 500<br />

2 000<br />

1 500<br />

1 000<br />

500<br />

0<br />

Procured vs determ<strong>in</strong>ed<br />

Capacity Per technology (MW)<br />

Determ<strong>in</strong>ed<br />

6 360 MW<br />

53%<br />

1 200 MW<br />

50%<br />

6 225 MW<br />

37%<br />

540 MW<br />

14%<br />

400 MW<br />

1 2 3 3.5 4 1S2 2S2<br />

Hydro 0 14 0 0 5 0 0<br />

Biomass 0 0 17 0 25 10 0<br />

Landfill 0 0 13 0 0 0 0<br />

Conc Solar 150 50 200 200 0 0 0<br />

Solar PV 627 417 435 0 813 30 50<br />

W<strong>in</strong>d 649 559 787 0 1 363 9 0<br />

25%<br />

Procured<br />

6 360 MW<br />

Procured<br />

3 357 MW<br />

Operational<br />

1 980 MW<br />

1 200 MW<br />

Procured<br />

600 MWOperational<br />

500 MW<br />

6 225 MW<br />

540 MW<br />

400 MW<br />

Procured<br />

2 292 MW<br />

Operational<br />

1 474 MW<br />

Procured<br />

74 MW<br />

Operational<br />

22 MW<br />

Procured<br />

99 MW<br />

Operational<br />

0 MW<br />

SELECT INVESTMENT OPPORTUNITIES IN<br />

GREEN INFRASTRUCTURE AND RELATED<br />

VALUE CHAINS:<br />

• Roll-out of renewable energy technologies.<br />

• Adoption of energy efficiency technologies.<br />

• Solar energy technologies and components (solar panels,<br />

solar water geysers, timers, etc.).<br />

• W<strong>in</strong>d turb<strong>in</strong>es and components.<br />

• Recycl<strong>in</strong>g (plastics, paper, glass, e-waste, etc.).<br />

• Electric vehicles and components.<br />

• Green IPPPP build<strong>in</strong>gs-related Overview | materials March 2019 & products.<br />

• Desal<strong>in</strong>ation plants.<br />

• Energy storage.<br />

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