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RENEWABLE ENERGY 29/03/2012

RENEWABLE ENERGY 29/03/2012. Green Industries, Department of Trade and Industry. RENEWABLE ENERGY IN SOUTH AFRICA. REIPPPP – Procurement of 3725MW of RE over 3-5 bid submission windows Industrial Policy Action Plan – Prioritizes green industry as an emerging economic growth sector

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RENEWABLE ENERGY 29/03/2012

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  1. RENEWABLE ENERGY 29/03/2012 Green Industries, Department of Trade and Industry

  2. RENEWABLE ENERGY IN SOUTH AFRICA • REIPPPP – Procurement of 3725MW of RE over 3-5 bid submission windows • Industrial Policy Action Plan – Prioritizes green industry as an emerging economic growth sector • Wind Industrial Strategy – investigation in to the development of the strategy for wind industry development • Solar and Wind Sector Development Strategy • Integrated Resource Plan (IRP) 2010-2030

  3. MANUFACTURING CAPACITY FOR WIND ENERGY • South Africa’s wind-turbine and component manufacturing industry is still in its infancy • Small wind turbines • Kestrel Wind Turbines (0.6kW to 3kW in size) • Aero-Energy • Medium/large grid connected wind-turbine generators • PalmTree Power (300kW) • Large grid-connected wind turbines • limited quantities of components for this market sector

  4. LOCALISATION POTENTIAL

  5. SOLAR ENERGY - CSP

  6. CSP Value Chains • Materials: steel, plastic, copper, brass, aluminium, concrete, silica, molten salt and synthetic oil. While these can be sourced globally, many materials (including steel, plastic, aluminium, concrete and potentially synthetic oil) is available in South Africa • Components: for the collector system, steam generator system, heat storage system and electrical/control system. Many of these can be manufactured by South African engineering, aerospace and automotive companies • Construction/assembly: most of the construction can be done by SA companies

  7. CSP Localization Potential

  8. Solar PV

  9. Solar PV • In South Africa, photovoltaic systems are all small scale (less than 1 MW) mainly for off-grid applications. • Applications have included the telecommunications, game farms, schools, rural households, health centres, isolated lodges, navigational buoys, and other such applications, at a total capacity of 21 MW • IRP 2010 - 8 400 MW target for PV • Two solar PV plants in the Western Cape • Tenesol • Solar direct

  10. Solar PV localisation potential • South Africa bears potential for local production of several components that make up a solar PV plant including: • Module • Inverters, • Tracking systems • Steel structures • Cabling • Transformers

  11. REIPPPP • RFP announced 31 July 2011 • Wind: 1 850MW • PV: 1 450MW • CSP : 200MW Rolled out over a series of rounds • Round 1 • 53 bids received amounting to 2123 MW • 28 Preferred bidders amounting to ……MW • Wind = 934 • Solar PV = 1039 • Solar CSP = 50 • Round 2 submittedin March 2012 and Round 3 in August 2012

  12. The role of the dti • Industry Development • Focus on localization of technologies • Set targets and monitor local content of RE projects • Local manufacturing • Incentivizing industry for local manufacturing of components • National standards are established for solar and wind power, ideally based on international standards • A facility is established for testing and certification of solar and wind power products • TISA promotes South African products and services in the solar and wind power sector.

  13. LOCAL CONTENT REQUIREMENTS

  14. EMERGING ISSUES • Definition of local content • How deep into the value chain do we go • Value add percentages part of local content? • Increased threshold realistic? • Capacity of local suppliers • Volumes • Meeting the quality specifications • Experience • Price

  15. CHALLENGE TO SUPPORT LOCALISATION • Challenges • Do we have local suppliers? • Are local suppliers competitive? • Will local suppliers behave in monopolistic way once local content increases? • Local content vs value for money • Economical competitiveness of local module production • Threats • If we do nothing local industry will not develop beyond point of natural localization

  16. CONCLUSION • We are doing this for SA – Jointly seek solutions to reduce risk on the programme, developers and industry • A national commitment to renewable energy • Establish the demand for investment • Development of a strong, competitive domestic manufacturing industry, • Capability to compete with imports from an already established global industry • Additional incentives required

  17. Thankyou Witness Mokwana wmokwana@thedti.gov.za Tel: +27 12 394 3508

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