50 renewable energy projects in the pipeline

With the South African government having set a target of 10 000GWh of energy to be produced from renewable energy sources by 2020, project cargo in this sector is set to increase significantly in the coming years. According to Mike Mulcahy, operations manager for GreenCape, a not for profit organisation aimed at growing green technology, there is an increased demand for renewable energy sources with predominantly wind and solar photovoltaic (PV) installations taking place country wide. “A revision of the Department of Energy’s Integrated Resource Plan (IRP2010) suggests 1GW wind and 1GW PV has to be delivered every year moving forward,” he said at the recent Breakbulk Africa conference in Johannesburg. And it’s not just wishful thinking either. While government has had to adjust some of its targets in its Renewable Energy Independent Power Producer Procurement Programme (REIPPP), a total of 15 projects have been approved and are already off the ground in the first two rounds of this programme. Another seven projects have been approved and announced for the third round of REIPP and will kick off in February of 2015 at the latest. South Africa is presently rated as the 12th most attractive investment for renewable energy. The programme has to date attracted over R150 billion in foreign direct investment. And with the country being one of the world’s leading examples in terms of sustainable government policy on solar, logistics operators can rest assured that capital investments will see a return. “In total we are looking at some 50 projects across the country,” said Mulcahy. “It takes a long time for the projects to get off the ground but we know this is a sector that is growing and will continue to do so into the future.” Mulcahy said most of the projects were in the Northern Cape followed by the Western Cape and the Eastern Cape. “A lot of work goes into setting up a renewable energy project due to the large number of studies that have to be done. The process of bidding, selecting and awarding contracts for a project can take nearly three years, but after that there is certainty that it will go ahead. If we look at the number of projects planned it is clear that there is work out there and that this is a booming sector in South Africa.” INSERT & CAPTION South Africa is presently rated as the 12th most attractive investment for renewable energy. The programme has to date attracted over R150bn in foreign direct investment. – Mike Mulcahy