Page 20 - Issue 3 2023

INDUSTRY AND TECHNOLOGY

Powering up Africa’s Automation and

Manufacturing Industries: Punching

through the toughest challenges

he importance of energy security in shaping South Africa’s questions about transitional arrangements for those projects
economic future is a key focus at the Africa Automation above the 100 MW threshold that are already in motion, and
Tand Technology Fair (AATF) taking place between 9-11 how these will be impacted.
May 2023 at the Gallaher Estate, co-located with Future
Manufacturing Africa (FMA), a new trade show dedicated to the Incentivising investment in rooftop solar through
full manufacturing value chain for the African continent. feed-in tariffs
A host of industry experts have been lined up to present at The government has acknowledged the potential for
the events’ dedicated conference, AATF Connect, which will be households and businesses to install rooftop solar solutions
initiated by Gwede Mantashe, from the Department of Energy. and to connect this power to the grid. To incentivise greater
They include: South African television presenter and moderator, uptake of rooftop solar, Eskom will develop rules and a pricing
Derek Watts, energy consultant, Chris Yelland, Dilley Naidoo structure, known as a “feed-in tariff”, for all commercial and
CEO – Madala & Associates, and Dhevan Pillay - South African residential installations on its network.
Energy Conservation. This means that those who have installed solar panels in
A key focus of AATF Connect will be to seek real answers to their homes or businesses will be able to sell surplus power to
the many difficult questions being asked about the measures Eskom. However, there are some complexities here, as most of
the government has identified to address the energy crisis. these installations occur within municipal distribution systems
rather than Eskom’s transmission systems.
The procurement of new generation capacity
As an immediate measure, Eskom will buy surplus capacity Improving the performance of Eskom’s existing
from existing independent power producers (IPPs), mines and power stations
other private entities which generate excess power, while 2,600 To address the red tape around buying spares and equipment
MW of capacity has been procured through Bid Window 5 of to effect critical repairs at power stations, Eskom’s budget
the Renewable Energy IPP Procurement programme (REIPPPP), for critical maintenance will be increased over the next 12
which should add capacity to the grid from early 2024. months. But, if Eskom relies on emergency procurement
Eskom will also look to buy power from neighbouring procedures (which allows deviation from the mandatory tender
countries with excess electricity capacity, such as Zambia and requirements to buy spares and equipment on an urgent basis),
Botswana, through the Southern African Power Pool, and this could open up the process to abuse and has the potential
aims to construct its first solar and battery storage projects at to be a vehicle for corruption and looting of this increased
Komati, Majuba, Lethabo and several other power stations. budget allocation.
On paper, the measures for new generation capacity look Philip Woods, Events Director: Business and Technology
positive, but there are still many gaps to be filled as to how at RX Africa says: “We understand that delegates at the AATF
these processes will roll out on a practical level. and FMA are after real, honest discussions and debates about
the burning issues that are impacting business today, as well
Easing of distributed generation regulations and as the future economic growth of our country and continent.
new legislation We look forward to bringing together the automation and
After removing the licensing requirement for generation manufacturing industry’s major players with energy leaders to
projects up to 100 MW in June 2021, President Ramaphosa tackle the major issues affecting progress and transformation,
has now announced the complete removal of the licensing and we are confident that the event will be of great benefit to
requirement for embedded generation, to incentivise further all involved.”
private investment in electricity generation and reduce the lead
times to commence construction of projects. Registration for both the AATF and FMA is currently open.
The term ‘embedded generation’ is ambiguous as it is To register or for more information, please visit
understood differently in different contexts. There are also https://www.africaautomationfair.com/en-gb.html

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