THE Coega Development Corporation (CDC) has welcomed what it describes as government’s commitment to clean energy, which forms part of the broadened South African energy mix.
This follows the recent signing of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) contracts from Bid Windows 3.5 and 4, worth R56 billion by Energy Minister Jeff Radebe on Wednesday.
Cumulatively, the 27 projects are expected to add 2 300 MW of electricity to the national grid over the next five years. Sandisiwe Ncemane, CDC Project Development Manager- Energy Projects, said the projects came, “with various localisation and socio-economic impact potential linked to them”.
The Coega Special Economic Zone (SEZ) is home to a wind tower manufacturing facility that has supplied wind towers to the various wind REIPPP projects within the region.
“To complement the logistics movement of the wind blades, the CDC has invested over R9 million in a lay down area for normal and abnormal cargo. The 12 hectares of land in Zone 1 of the Coega SEZ located on the boundary between the Port of Ngqura and the Coega SEZ has played an integral role in the regional connection of wind power,” the CDC said in a statement.
“Cementing the Coega SEZs status as a hub for mega energy projects, is the Dedisa Peaking Power Plant – a R3.5 billion investment with a capacity of 342MW. Additionally, the SEZ is allocated 1000MW in the Independent Power Producer (IPP) Gas to Power Programme. As such, the organisation is driving an Environmental Impact Assessment for the Gas to Power Plant,” the CDC added.
Sandisiwe said the corporation was working closely with various entities with a focus on advancing readiness for nuclear localisation. “This is to ensure that the CDC continues to build momentum related to the national energy transition in order remain relevant to the developmental trajectory of South Africa”.
The CDC’s comments follow a similarly positive reaction from the South Africa Photovoltaic Industry Association (SAPVIA).
“It has been a long drawn out process to prove to South Africa, investors and the entire energy community that renewables have their place and role to play in a rationally decided energy mix,” said SAPVIA Chairperson Davin Chown.
In a statement, the association said the signing of the PPAs would boost and revitalise long-term investor confidence, both local and international investment as well as job creation.
“R58 billion of investment, more than 61 000 jobs and 2 305MW of energy added to the mix is only the beginning of what this industry can achieve.”
Niveshen Govender, SAPVIA Programme Manager said the association had, “full confidence in government’s ability to drive this process forward, together with the business sector and other social partners. We are proud to represent an industry whose sole focus is to bring in much needed investment to South Africa and create new jobs and opportunities for communities surrounding these projects, creating a vibrant growing industry.”
Govender added that the recent signing was, “indeed a step in the right direction and we anxiously await the signing of the expedited round and the small projects programme which will fast track the delivery of employment opportunities, industrialisation opportunities, social development programmes and the benefits of local ownership, all of which are common features of all REIPPPP projects”.