The Energy Minister, Ms Dipuo Peters, told the media that a feasibility study by the Department of Energy and the non-profit Clinton Climate Initiative indicated that the conditions in the Northern Cape are ideal for the establishment of a solar park, primarily due to the intense solar radiation in this province.
According to a A Mediaclub SA report the value of this investment in solar power could be as much as $21.8 billion and construction could begin as early as 2012. But the total investment will be much more. Engineering News says it is estimated that government would need to invest between R70-million (approximately $10 billion) and R105-million ($15 billion) to set up the basic transport, water and transmission infrastructure to stimulate private investment of the approximately R150-billion ($21 billion) in generating assets.
With the help of a World Bank loan, Eskom, South Africa’s primary energy utility, is already developing a 100 MW concentrated solar power plant, estimated to cost about $1-billion, in the same region.
An investors' conference will be held on October 28 and 29 in the Northern Cape city of Upington in an effort to generate private-sector interest in the project.
Peters said such a solar park would indicate a serious and long term commitment to solar deployment, "present the country with a unique opportunity to become a manufacturing and technology hub for the global solar industry. Around the world, growing solar deployment will demand materials and components beyond current manufacturing capacities."
She added the construction of the entire park would take around a decade and result in the creation of approximately 12,300 average annual direct construction jobs. It could also create approximately a much needed 3,010 operations and maintenance (“O&M”) jobs by the time the final solar plant comes on stream.
Peters said the Northern Cape meets the requirements for such a large solar park. This includes an acceptable level of annual solar radiation, sufficient acreage to accommodate the plants, connectivity to the electricity grid, access to water; adequate transportation infrastructure, efficient land availability, streamlined environmental approvals, sufficient slope, vegetation and soil conditions and low geological and climate risks.
Push for renewable energy
This comes on the back of a recent announcement that more nuclear power stations will be also be built. Currently South Africa has only one nuclear power station at Koeberg (near Cape Town) in the Western Cape and relies mainly (90%)on coal for its annual energy production (approximately 40,000 megawatts per annum).
The country's push to include renewable resources in its future national energy strategy is multi-faceted:
*More efficient coal powered stations: MediaclubSA says the World Bank has granted Eskom a $3.75-billion loan both to help build the country’s biggest coal-fired plant, Medupi with state-of-the-art technology to produce more power with less coal. The loan will also finance renewable energy projects such as the solar power plant and wind farms.
* Wind energy: According to Stefan Gsänger of the World Wind Energy Association, South Africa is the first country in Africa to introduce a feed-in tariff for wind energy. “Many small and big investors will now be able to contribute,” he says. “This will help South African communities to invest in wind farms and generate electricity, new jobs and new income.”
* Solar water-heating programme Eskom encourages consumers to replace electric geysers with solar-powered geysers through a substantial rebate.
* Private sector investment in other renewable energy plants is also encouraged through generous feed-in tariffs, which were approved by the National Energy Regulator of South Africa in late 2009 and rate among the most attractive worldwide.
* Low energy lighting The government has also launched a massive drive to install low-energy lighting in thousands of buildings it owns, which will save some $845-million in electricity costs every year.
* Nuclear technology the Department of Energy has announced its intention to build five to six new nuclear stations over the next few decades. Minister Dipuo Peters said a series of nuclear plants would be more cost-effective than a single large one.
This strategy will be in the global spotlight in 2011, when South Africa hosts the 17th annual UN Framework Convention on Climate Change conference. New global emission targets are also likely to be discussed at the gathering.
