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SA takes another step towards renewable energy

South Africa took another step closer towards moving to renewable energy with the signing of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) tender this week.

The REIPPPP is a tender procedure that was launched by the Department of Mineral Resources and Energy to engage the private sector investment into grid connected renewable energy. It has the goal of bringing more megawatts to the country’s electricity system by using private sector investments in wind, solar energy, small hydro and other renewable energy resources.

The programme has already taken initiative in Eastern Cape and so far it has proven a success, with 18 132 jobs being created and one solar energy farm presented to the province.

As a result the province has seen a reduction in load-shedding because of the additional boost to its energy security.

The Integrated Resource Plan (IRP 2019) with relevant Ministerial Determinations is responsible for carrying out the role of the procurement to bidders under the Independent Power Producer Procurement Programme (IPPPP).

The request for bids under Bid Window 5 of the REIPPPP was launched on 12 April 2021. The successful bidders were announced on 28 October during the same year.

On Thursday Minister of Mineral Resources and Energy Gwede Mantashe hosted a project agreement signing ceremony with the three chosen bidders in Centurion, Gauteng. 

Mineral Resources and Energy Minister Gwede Mantashe. (Photo: Phill Magakoe/AFP)

Mantashe added that the department is aiming to release Bid Window 6 by not later than the end of January 2022.  

“Bid Window 6 will also include 1 600MW of onshore wind and 1 000MW of solar PV in accordance with #IRP2019,” he said. “With this bid intact, the department aims for the project to deliver power within 24 months from the signing of the project agreements, and also 2 600MW of renewable energy to be generated,” he said. 

Mantashe said the government must invest in transmission lines in the Northern Cape so that it can generate energy from the wind and sun in that province. “We must work together to develop the country,” he said. 

Most companies aligned with the REIPPPP use solar energy to generate electricity. Solar energy is a low-cost source of energy compared to other non-renewable energy resources in South Africa. The introduction of solar power has created jobs within the country and pushed the economy in a positive direction.

The National Energy Regulator (NERSA) is one of three energy regulators in South Africa that establishes the framework for energy regulation. As from 1 January 2016 Section 12B of the Income Tax Act (South Africa) no. 58 of 1962 reformed the three year depreciation allowance on renewable energy to an even quicker depreciation allowance of one year.

The reform came because the government wants to accelerate the development of smaller solar PV energy projects, as these have less environmental impacts on the air and water, and with the rise of energy problems in South Africa the department was required to act.

Since solar energy is the way forward for South Africa, the United Nations Environment Programme has made positive remarks about the transition to solar energy for the country.

According to the United Nations Environment Programme (UNEP), the promotion of solar energy is a high potential mitigation opportunity that could deliver emission reductions.

This is because it provides technological advancements and substantial benefits for rural economies in terms of employment, off-grid access to energy and expanded energy source.

It can enhance energy security, reduce air pollution and improve public health according to the UNEP, which aims to fully modernise energy by 2030 with solar energy by partnering with more than 80 countries, including South Africa, and a number of international private sectors to achieve its goal. — Lethabo Mahlakwane, Mukurukuru Media

Consumers go solar to avert electricity blackouts

Limpopo-based Thabo Manamela, 42, is highly relieved that he opted for a renewable source of energy for his household. 

Manamela, who recently moved from the city of Polokwane to a new development called Kwena Moloto 3, said he couldn’t rely on promises by the municipality to connect the area to the national grid and instead opted for an alternative in solar power energy. 

“My area does not have electricity, as a result I have chosen to go with a big solar system. Initially I used a generator. However it was very costly, so I opted for solar energy,” he said.

Manamela installed 14 solar panels, an inverter and two lithium batteries to power his household. 

“This year was my first winter on renewable energy and I am comfortable with my choice because it took us through winter. I was even able to pull water from the borehole using solar power. I don’t need electricity from Eskom any longer,” Manamela said. 

According to market research company Mordor Intelligence, the South African solar photovoltaic (PV) market is expected to register a compound annual growth rate of over 11.17% during the forecast period of 2022-2027. This is forecast to reach the solar PV installed capacity of 8 369MW in 2027 from 3 672MW in 2020. 

This week the country experienced one of its worst rolling electricity blackouts after power utility Eskom announced stage 6 load shedding. The situation, which has had an adverse impact on the economy, has once again reignited the debate on moving towards renewable energy.

Eddie Phambane, whose company PV Powers specialises in solar power installation in Polokwane, said there is a high demand for solar energy.

Phambane, who started his company in 2020, said that there has been a higher demand throughout this year, which has led to him operating in both Polokwane and Rustenburg. 

“I quote more than 10 customers on a daily basis and our weekends are fully booked for installations which range according to customers’ consumption;  they need power inverters, isolators, lithium batteries, solar panels and so much more,” he said.

“I need to stay two steps ahead because the batteries, inverters and other equipment are being developed all the time,” Phambane said. 

He said that most clients look for backup systems which would ideally last them a few hours, but he believes that over time more people will take on his solar packages for permanent power solutions. 

President Cyril Ramaphosa, who cut short an international visit to deal with the most recent power outages, weighed in on the crisis.

“The severe load-shedding of the last few days has reminded us how unstable our ageing power stations are. It has given greater urgency to the measures we announced two months ago to stabilise our electricity supply. Solving the electricity crisis is necessary if we are to realise the potential of our economy,” he said. 

One of the measures announced to solve the country’s power problems is the addition of solar power to supply the national grid.

As a  result, the Coleskop Wind Power, San Kraal Wind Power and Phezukomoya Wind Power, which all offer onshore wind energy technologies, are expected to deliver power into the grid within two years.

Ramaphosa, who leads the National Energy Crisis Committee (NECOM) established in July this year, said that “transforming the electricity sector to achieve long-term energy security so the country never experiences electricity shortage” was a key priority among the committee’s objectives. — Mokgadi Mogy Mashako, Mukurukuru Media

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