Of crucial importance for South Africa in meeting the demands of the renewable energy industry, is the urgency to adapt to existing products and engineering offerings. This is necessary to foster local economic growth, enabling the local market to catch up with wealthier nations across the globe that are leading the shift in renewable energy.
Innovations such as online condition monitoring can improve the efficiency and reliability of renewable energy projects, paving the way for a sustainable future.
Companies in South Africa have been involved in the green economy since 2011, when the government introduced the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
Thus, local organisations already have a wealth of experience in manufacturing the balance of plant for renewable energy products, engineering, procurement and construction, financing and operation, and maintenance.
The homegrown skills and resources are key to South Africa harnessing renewable energy and continuing to nurture homegrown expertise in renewable energy.
To successfully develop South Africa’s domestic manufacturing capabilities and reduce the African region’s dependence on foreign suppliers, it is vital that companies provide end-to-end services, including product supply, installation, and maintenance, ensuring a smooth transition to sustainable energy sources.
Key to this is a mechanism such as the African Continental Free Trade Agreement (AfCFTA), which aims to achieve the free movement of physical goods throughout the African Union, as well as the liberalisation of trade through the implementation of preferential tariffs.
Recently, the five member states of the Southern African Customs Union (Sacu) – South Africa, Lesotho, Botswana, Namibia, and Eswatini – ratified the AfCFTA agreement. The Sacu has also submitted its joint offer of tariff concessions, which is currently being verified by the AfCFTA Secretariat.
The agreement is expected to catalyse the manufacturing industry and open trade opportunities between African manufacturers, increasing regional demand for equipment and services and driving access to new markets.
Importantly, this will enable African manufacturers to develop economies of scale, which will position them to effectively compete with foreign companies in the renewables space.
According to Gaylor Montmasson-Clair, senior economist at Trade and Industrial Policy Strategies (TIPS), South Africa has imported R35 billion’s worth of solar panels since 2010, while citizens have imported solar panels worth R12 billion in 2023. This is equivalent to roughly 2 200MW of generation capacity.
It is estimated that South African households and businesses have installed 4 400MW of rooftop solar photovaltic (PV) devices to date, which has significantly reduced the residual load that Eskom needs to meet during the day.
The scope for African manufacturers in the green economy is vast, but the continent needs to expand the supply chain in this space by effectively harnessing initiatives such as the AfCFTA agreement to build economies of scale.
It is only through the localisation of the renewable energy industry that local manufacturers can hope to compete with large-scale and well-established foreign suppliers. The prolonged power crisis is significant to some extent, helping South Africa drive the transition to sustainable energy sources.
Matlawa
is a group business development executive
at Actom, a supplier of electrical equipment and
services
, and writes in her own capacity.
Source link : https://www.news24.com/news24/community-newspaper/express-news/sa-refuels-energy-sector-20240116
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Publish date : 2024-01-16 08:00:00
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