Page 8 - Energize July 2021

NEWS

RE offers energy-security and a positive pandemic, renewables were the only
During 2020 amidst the Covid-19

ripple effect for SA’s beleaguered economy source of energy to report a growth in
global demand. The upswing in renewables’
popularity has been driven by widespread
government policy support, dedicated
n a bold move last year, the South African government launched an emergency energy procurement programs and continuous
procurement plan with a view to relieving the current energy crisis and limiting load-shedding. innovations, bringing both technology costs
IThe shortfalls are currently partially alleviated, at great expense, however, as there is extensive and operating costs down. 3
use of diesel-based open cycle gas turbines. 1 “The trend is also being shaped by
Such fossil-fuel based contingencies undermine our ability to reduce carbon emissions, curb watershed policy shifts around the world.
global warming, and achieve sustainable development. For example, Norway aims to end the sale of
Dubbed the Risk Mitigation Independent Power Producer Procurement Program (RMIPPPP), fossil fuel-powered cars by as soon as 2025,
the new plan is unlike any of the Department of Mineral Resources and Energy’s previous with many other nations like India, Canada,
interventions. UK and the EU likely to do the same in the
Whereas RMIPPPP’s predecessors prescribed specific technologies, here any technology coming decades”, says Fourie.
type (or combination thereof) in any location is considered if the proposed plans meet the Globally, institutional funds are being
department’s stringent criteria around cost-efficiency and dispatchability (the ability to dispatch pulled out of fossil-fuels, and the coal-based
the right amount of power at the right time according to the needs of power-grid operators). power industry no longer enjoys popular
The RMIPPPP plan, which envisions a total of 2000 MW in emergency capacity to be backing. Much public and corporate support
generated by independent producers, is aligned with progressive energy goals outlined in the has gravitated towards renewables in recent
Integrated Resource Plan (IRP). years. Even leading companies in the coal
The ambitious RMIPPP Program follows the trajectory set by the REIPPP (The Renewable and oil industries are now shifting their focus
Energy Independent Power Producer Procurement Program), a competitive tender process and investing significantly in renewables.
for grid-connected renewable power which has attracted over R200 billion in private sector Fourie commends the South African
investment over the last eight years. 2 government for its progressive vision,
Since 2013, Independent Power Producers (IPPs) have proven resilient and reliable, and we’ve and admirable commitment to its targets.
seen the plethora of benefits that private power producers bring to the economy: they attract He notes that the country’s world-class
investment, stimulate the market, and reduce the pressure on the nation’s fiscus. They bring skills infrastructure that facilitates large-scale
and jobs. IPPs also enhance energy security and help diversify the energy mix. generation and distribution, along with
“The RMIPPPP is a progressive step in South Africa’s energy history, and, if successful could treasury’s full support for the new power
revolutionize the way power is generated and procured in the country”, suggests Jan Fourie, purchase agreements, have resulted in an
General Manager in Sub-Saharan Africa of Norwegian renewables giant, Scatec. attractive investment landscape.
Scatec’s bid-winning proposals are remarkable in that they are the only successful bids to Fourie adds that as Scatec expands its
focus solely on renewable energy. foothold in Sub-Saharan Africa, they will be
“Purely renewables-based projects like Scatec’s offer economic benefits in that all their costs up-skilling to further develop institutional
are embedded in the initial capital expenditure. No fuel is needed to run the project, therefore scope and expertise. He says Scatec is
there is no commodity risk and currency risk to government and no carbon tax”, Fourie explains. currently looking at further forays into wind-
“This is exciting for Scatec as we now have the opportunity to demonstrate the viability of based power, as well as other power-to-X
renewable energy production and quell any doubts around its cost-competitiveness. Scatec is also initiatives like green hydrogen and others.
honoured to be able to contribute to job creation in South Africa by creating several thousand “We are becoming more agile in that we
construction jobs with this project, as well as many permanent positions in operations and are tech-agnostic and can shape our power
maintenance”, says Fourie. solutions to particular situations in specific
areas and adapt our strategies accordingly,
in order to maximise efficiency”, concludes
Fourie.

References
1. www.iol.co.za/business-report/opinion/
breaking-new-ground-in-power-procurement-
09e2677c-a870-4eec-a37b-60841aa3abda
2. https://www.sanews.gov.za/south-africa/
renewable-energy-programme-attracts-r2094-
billion-sa-economy#:~:text=4%20billion%20
to%20SA%20economy,-Sunday%2C%20
February%2024&text=The%20REIPPP%20
is%20a%20competitive,period%20it%20
has%20attracted%20R209
3. GreenCape RE MIR

Contact Scatec, Tel 021 202-1230, post.
za@scatec.com

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