The South African government’s commitment to pushing ahead with the country’s renewable energy programme has cleared the path for foreign investment from Germany.
That was the message from Alexander Solomon, head of economy and energy at the German embassy in Pretoria, speaking at the International Supply Chain Day hosted by Röhlig-Grindrod Logistics in partnership with the Southern African-German Chamber of Commerce and Industry (SAGCS) in Johannesburg last week.
“Minister of Energy Jeff Radebe’s signing of the 27 outstanding power purchase agreements, as part of the SA government’s Renewable Energy Independent Power Producers Procurement Programme (REIPPPP), was seen as a massively positive step by German investors as it ended two years of policy uncertainty,” he said.
Frank Aletter, deputy CEO of the SAGCS told FTW there was “a definite push” for cooperation and joint ventures in the renewables industry since sustainable energy solutions were of concern to both countries.
“In this arena, we’re seeing innovation in photovoltaic (PV) technologies taking place in both Germany and SA,” said Aletter.
The delay in signing the power purchase agreements had cost the country in excess of R200 million in investments, according to the South African Renewable Energy Council (Sarec). Several logistics companies – who had invested in services and equipment for the anticipated renewables boom – had also been hard hit as the projects to build the new fleet of wind and solar power stations had not got off the ground, he said.
Karen Breytenbach, head of the government’s Independent Power Producers’ Office (IPPO), said the first of the power stations was expected to come online by 2020.
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We’re seeing innovation in photovoltaic technologies taking place in both Germany and SA. – Frank Aletter
