The Solar PV Industry Association (Sapvia) and South African Wind Energy Association (Sawea) say they are optimistic about a positive future under the new Ministry of Electricity and Energy headed by Minister Kgosientsho Ramokgopa and Deputy Minister Samantha Graham.
However, the organisation said industry challenges remained a concern, particularly ahead of the Renewable Energy Independent Power Producer Procurement Programme Bid Window submission deadline, and the dwindling grid capacity in wind-rich areas.
South African Wind Energy Association (Sawea) CEO Niveshen Govender said they had high expectations from the newly formed Ministry of Electricity and Energy to work with the industry to overcome sector challenges, including grid constraints, regulatory and policy uncertainty, as well as local manufacturing limitations.
“To mitigate these, there is a critical need to accelerate the integration of wind energy as part of the county’s energy-mix and requires policy and strategic intervention to ensure an affordable, stable and reliable electricity supply across South Africa,” Govender said.
The association said it supported the separation of Mineral Resources and Energy into two separate ministries, as it enabled the country to prioritise energy security with a special focus on electricity.
Govender said, “The new ministry should prioritise overseeing the maintenance and expansion of the country’s electricity infrastructure, inter-departmental energy policy alignment, and stabilising the grid. As Sawea, we will continue to promote renewable energy (wind power in particular), and work with the government to create an attractive investment destination with consistency and continuity for the wind sector, contributing to the national grid and addressing energy security challenges.”
Sawea said it remained committed to supporting and collaborating with the government to drive innovation in the energy sector to achieve the goal of South Africa’s energy security “as we transition to a low-carbon economy”.
“Together, we can enhance the resilience and sustainability of the nation’s energy resources to meet the growing demand and mitigate risks to the energy supply,” Govender said.
Dr Rethabile Melamu, CEO of the Solar PV Industry Association (Sapvia) has also welcomed the announcement by the president of Ramokgopa at the helm of the Electricity and Energy Ministry.
“We have already established a good relationship with his office and we congratulate him on this appointment. The minister has a solid appreciation of the contribution that solar PV can and has made to the country’s electricity supply.
“We look forward to again working alongside his ministry to contribute to energy security by tapping into the abundant solar resources that the country can access. This will also help unlock job opportunities and the many other opportunities that exist within the solar PV value chain,” Melamu said.
Meanwhile, the SOLA Group said it saw great promise in the new Transmission System Operator (TSO) Bill, but South Africans must hold the government to its promises.
Jonathan Skeen, a director of SOLA, said as a provider of clean and innovative energy projects for close to two decades, they had often fought against the tide of prevailing energy policy or industry norms.
“We do recognise, of course, that we’re part of a system of public and private institutions; of large and small energy users; of big and small businesses; of Eskom and an array of municipal grid operators,” he said.
A recently cemented partnership with Eskom now enables the company to sell power from generators in the interior of the country to businesses on the east and west coasts. By using this service, these clients become active participants in solving load shedding.
“They believe, as we do, that South Africa’s future lies with a robust electricity grid that connects the best of the public and private sectors to deliver reliable, low-cost, and sustainable energy,” Skeen said.
South Africa’s new government has come into power just weeks after the passing of the Electricity Regulation Amendment Bill by the National Council of Provinces. Through the establishment of an independent TSO, SOLA said the bill created a vehicle for the modernisation and evolution of the electricity grid.
In the words of the bill itself: “The Electricity Regulation Amendment Bill aims to provide for additional electricity-generation capacity and infrastructure, establish the duties, powers, and functions of the Transmission System Operator SOC Ltd, and provide for an open-market platform that allows for competitive electricity trading, among others.”
Amid their upbeat projections, the directors of SOLA said they were mindful of the fact that these issues were first raised 26 years ago by the Department of Minerals and Energy, “and it’s taken over a quarter of a century of policy reversals, load shedding, economic destruction, and nuclear-detours for us to reach this point”.
“South Africans must now hold our new government’s feet to the fire,” Skeen said. “And SOLA has every intention of doing so, although we aren’t waiting for these ideal conditions to materialise before implementing solutions for local business.”
The electricity rules still require substantial work and to date only two companies Amazon and Tronox had actually purchased large volumes of renewable electricity from a supplier other than Eskom, he said.
SOLA said they had taken a proactive stance in the meantime by building a large solar wheeling plant, which transports power to companies outside of their grids.
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