Page 28 - Energize October 2022

NEWS

IDC to explore wind sector industrialisation

outh Africa’s accelerated energy transition and its push
for sector industrialisation will be led by increased local
Smanufacturing, with a projected target of well over 55% for
government procurement by the end of this decade. To achieve
this, government’s support through policy, smooth procurement
and investment will be the key enabler. Noting this, the Industrial
Development Corporation (IDC), South African government’s
development funding agency, which plays a pivotal part in the
country’s energy transition and seeks to stimulate increased
localisation of renewable energy inputs, has sent a delegation to
Spain to visit Nordex SE’s wind turbine manufacturing facilities.
The IDC delegation comprises Imran Sayed, Divisional
Executive: Manufacturing; Kugan Thaver, Head: Machinery
Equipment and Electronics; Mukesh Ramjee, Business
Development Manager: Machinery Equipment and Electronics;
and Umeesha Naidoo, Industry Development Planner. constructing local assembly facilities and of course the volume
The delegation is being led by Compton Saunders, Nordex and clear sight of the project pipeline, to make this feasible in a
Energy South Africa’s Managing Director, who will facilitate very price competitive environment, will need to be unpacked,”
discussions around opportunities for industrialising the local he explained.
wind power sector. Considering that the draft SAREM estimates that annual
“In order for the Corporation to spearhead investment in economic growth of over R140-billion will be achieved through
the localisation of wind power components, they need to know production value, delivering in excess of 30 000 direct jobs on
what they are investing in and what can be expected from the assumption of 70 to 90% localisation of key components and
Original Equipment Manufacturers. To do this, it is important 90% of balance of plant by 2030, local support and investment is
that the scale and complexity be unpacked, so that government critical.
can get a clear sense of the process, and for them to gauge the The exploratory trip will allow for first-hand discussions with
requirements accurately,” says Saunders. the original equipment manufacturer, one of the world’s largest
The delegation is due to visit both of Nordex’s blade and wind turbine manufacturers.
nacelle manufacturing facilities in Lumbier and Barásoain area. The IDC targets opportunities at bankable stage. With over
As it stands, assuming that smooth procurement of new wind R14-billion invested in renewable energy projects spread across
energy production continues, this sector is an excellent vehicle the country, the IDC has also funded 25 community trusts,
for direct infrastructure investment and a positive multiplier of enabling active community participation in the Renewable
economic effects, including nacelle assembly facilities. As the Energy Independent Power Producer Procurement Programme.
market matures and volume remains sufficient, the sector could
expand into the manufacturing of other specialised components About Nordex Energy South Africa
for wind turbines. Nordex Energy South Africa Ltd. (NESA), boasts a total installed
Wind turbine nacelles are the heart of the turbine, alike to capacity of more than 1 GW, making it the market leader
the engine room on a ship, and house critical components such with 32% market share on the total installed wind capacity in
as the gearbox, main shaft, generator, transformer and electrical South Africa. By Q1 2022 NESA would have built and will be
cabinets, of which many can be locally assembled and eventually operating (O&M) nine wind farms (1,1 GW) in the country,
manufactured. under the REIPPP Programme. The Nordex Group focuses
Saunders says the first potential step is to import on development, manufacturing, project management and
components into the country to be assembled locally and servicing of onshore wind turbines and this has been the core
thereafter as a second phase, certain nacelle components can be competence and passion of the Nordex Group and its more than
manufactured in the country. 8500 employees worldwide for 35 years. With the acquisition
“We are certainly one step closer to partnering with of Acciona Windpower in 2016, the Nordex Group has become
government, through the Corporation, which will enable local a global player and one of the world’s largest wind turbine
assembly and manufacturing of nacelle components. However, manufacturers.
we need to consider the economics and the mechanisms
available to enable local cost competitive assembly in South Contact Nordex Energy South Africa,
Africa. Import taxes, special economic zones, funding support for https://www.nordex-online.com/en/south-africa/

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