South Africa welcomes the world to the International Renewable Energy … · 2015-10-29 ·...

TTIINNAA JJOOEEMMAATT--PPEETTTTEERRSSSSOONN

ON BEHALF of ourGovernment, letme take thisopportunity towelcome you all toSouth Africa and

to the African Continent for thosewho are coming from overseas.

We are privileged and grate-ful to have been selected to hostthis international gathering thatincludes Cabinet Ministers, theprivate sector, academia andother experts, as well as dele-gates from civil society. Hostingthis International Energy Con-ference is an opportunity thatcould not be missed, given thatAfrica is progressing on aneconomic trajectory that chal-lenges our energy needs. Theworld over, the energy securityproblem has taken on an excit-ing dimension relating to renew-able energy deployment.Although the African Continentis richly endowed with naturalresources to generate energy, todate we have not taken fulladvantage of tapping into themfor our benefit. As such, Africaneeds to embark on a journey tobroaden our options by diversi-fying our energy mix and har-nessing renewable energysources. South Africa is ready to

build on the successes of previ-ous IREC hosts: Germany,China, the United States ofAmerica, India and the UnitedArab Emirates.

It is worth reflecting on whathas been achieved to date and tochart a way forward with alllike-minded countries that wantto invest in the clean technologysector and renewable energy inparticular. It is our belief thatthe renewable energy valuechain offers solutions forincreasing energy access, secu-rity of supply, emissions reduc-tion, sustainable developmentand significant improvement insocio-economic development.

We welcome you all to SouthAfrica and we invite you all tojoin us in this platform to createpartnerships in scaling uprenewable energy and increasethe benefits through invest-ments, building skills andcreating jobs to strengthen oureconomies.

We hope that you will alsotake the opportunity while youare here to enjoy the beautyand richness of South Africa’slandscape and the warmth ofour people.

n Hon Ms Tina Joemat–Pettersson is South AfricanMinister of Energy.

South AfricanInternational

Renewable EnergyConference4 - 7 October 2015

Miss Earth Carla Viktor poses withthe new BMWI8 electric car tosupport the first InternationalRenewable Energy Conference(IREC) to be held in Africa. The SouthAfrican International RenewableEnergy Conference (SAIREC) is beinghosted by the Department of Energyat the Cape Town InternationalConvention Centre, Cape Town from4 – 7 October.

Picture: Jared Govendor

What is the South AfricanInternational Energy Confer-ence?

Convened by the RenewableEnergy Policy Network for the21st Century (REN21), the Inter-national Renewable Energy Con-ferences are high-level politicalconferences hosted by a nationalgovernment.

These conferences provide aglobal platform for government,private sector and civil societyleaders to advance renewableenergy. South Africa is the sixthcountry, and the first in Africa, tohost an International RenewableEnergy Conference (IREC).

The South African Interna-tional Renewable Energy Confer-

ence (SAIREC 2015) is takingplace at the Cape Town Interna-tional Convention Centre in CapeTown, South Africa this week (4-7October 2015).

Previous hosts include: Bonn,Germany (2004), Beijing, China(2005), Washington, USA (2008),Delhi, India (2010), Abu Dhabi,UAE (2013).

Why is South Africa host-ing this event?

SAIREC 2015 provides a globalplatform for government minis-ters, high-level decision makers,experts, specialists and thoughtleaders, as well as private sectorplayers and civil society, to dis-cuss and exchange their vision,

experiences and solutions toaccelerate the global scale-up ofrenewable energy.

Over the past decade theseconferences have provided themotivation for several momen-tous initiatives.

Hosted in South Africa by theSouth African Department ofEnergy together with the SouthAfrican National Energy Devel-opment Institute (SANEDI),under the theme RE-energisingAfrica, SAIREC will demonstratewhy Africa is the business desti-nation for the renewables energysector given its current growthtrajectory and need for invest-ment in clean energy to underpinsustainable economic growth.

BUILDING ON THE SUCCESSES OF PREVIOUS HOSTS

South Africawelcomes theworld to theInternationalRenewable

EnergyConference

OCTOBER 2015

OCTOBER 20152 South AfricanInternational

Renewable E nergyConference4 - 7 October 2015

How renewable energy hasempowered South Africa

KKAARREENN BBRREEYYTTEENNBBAACCHH

THERE is an answer toSouth Africa’scontinuing energycrisis: rolling out morerenewable energyprojects that make the

most of the power we can generatefrom our sun, our wind and thewater in our rivers.

This will be fundamental to theSouth African InternationalRenewable Energy Conference(SAIREC 2015) taking place thisweek in Cape Town, which theRenewable Energy Policy Networkfor the 21st Century (REN21) isproud to convene. Hosted by theSouth African Department ofEnergy, collaborating with theSouth African National EnergyDevelopment Institute (SANEDI),SAIREC 2015 is the first of thesehigh-level conferences to take placeon African soil.

Historic opportunity

These conferences attractgovernment ministers from thecontinent and the world, togetherwith high-level decision makers,experts and specialists fromgovernment, industry and civilsociety. This is a historicopportunity for South Africa andthe continent to drive forward theirinnovative work in ensuringsustainable growth for Africannations, underpinned byinvestments in clean energy.

Hydropower is the only sector ofrenewable energy to have startedachieving its potential in Africa.Otherwise, renewable energy is notyet powered up in the Africanregion, where it could alsocontribute to developing regionalelectricity trade.

Five years ago, the South AfricanGovernment’s 2010 IntegratedResource Plan gave its vision oftransforming the country’s power-generation capacity by 2030. Itaimed to reduce South Africa’sprimary reliance on fossil fuelssuch as coal and diesel and diversifythe national energy mix to produce41.8 percent from renewable energysources and a further 6.1 percentfrom hydroelectricity within twodecades.

Stimulating the growth of anindigenous energy industry wouldalso contribute to socio-economicgrowth. The overall outcome of thissustainable growth would benefitthe people and the economy ofSouth Africa.

Cooperation for innovation

As part of realising this vision,the South African Governmentlaunched the Renewable EnergyIndependent Power ProducersProcurement Programme(REIPPPP) at the end of 2010.Within our country, thispartnership has createdconsiderable experience andknowledge of unlocking renewable-energy resources by enablingindependent, private-sector powerproducers to play a meaningful rolein energy supply capacity.

At SAIREC 2015, delegates willshare the lessons of our nation’squest to harness and transform itsabundant renewable resources intoelectric power.

Challenges facing theindependent power producers andthe Government include: limitedaccess to appropriate renewabletechnologies; fiscal constraints; andthe historic financing and provisionof energy by the public sector.

Over the past five years, theGovernment and independentpower producers have made greatstrides towards rolling out

renewable energy projects.Together, we have focused ononshore wind, concentrated solarpower (CSP), solar photovoltaic(PV), small hydro, biomass, biogas,landfill gas and generating energyfrom agricultural waste or by-products.

What has made the growth ofrenewable energy possible has beenpolitical will, policy coherence,clear regulatory frameworks,convergence between energygeneration and transmissionplanning and fiscal plans.

Delivering cost-effective,renewable energy

The South African experienceover the past five years has shownthat transforming renewableenergy resources into electricity onthe grid is both empowering andhighly complex. As well as therelevant national procurementpolicy framework, the RenewableEnergy Independent PowerProducer Procurement Programme(REIPPPP) must also be guided by

broader national sustainabledevelopment objectives such asemployment creation, the greeneconomy, industrialisation, equity,investment and the environment.

Yet transforming renewable-energy sources into electricity onthe grid within a short space oftime has been an enormous success.By mid-year 2015, more than 6 000megawatts (million watts) ofelectricity had been procured from92 renewable-energy independentpower producers.

This rollout of renewable energyhas also helped contain electricityprices. The renewable-energysector’s competitive procurementapproach meant that average pricesbid across all renewabletechnologies have declined 67.5percent over the past five years.

This contribution wasconfirmed in a July 2015 study bythe Council for Science andIndustrial Research Energy Centre.It found that over the previous 18months, independent renewable-energy producers reduced nationalelectricity supply constraints and

the frequency and stage-size of loadshedding (see article CSIR studyhighlights the financial benefits ofrenewable energy projects in SouthAfrica).

Contributions from renewable-energy sources also reduced thecosts of buying fuel to generatecoal- and diesel-based power.Overall, the environmental benefitof South Africa’s operationalrenewable-energy generationcapacity has so far amounted to theequivalent reduction of 4.4 milliontonnes of carbon dioxide.

Providing jobs, developmentand investment

Scaling up renewable-energyprojects in South Africa has alsodelivered substantial numbers ofjobs, contributed to extensive socio-economic development andattracted large sums of domesticand foreign investment.

Job creation on renewable-energy projects has grown beyondthe project developers’ originalexpectations. Employmentopportunities for South Africanswill soon top 20 000 job years, madeup so far of 18 195 job years duringconstruction and 855 job years inoperations. To make theserenewable-energy projects a reality,South Africa has attracted R192.6billion in domestic and foreigninvestment to date. More than aquarter of this, or R53.2 billion,came from foreign investors andfinanciers. To put this inperspective, in five years,renewable-energy projects in SouthAfrica attracted the equivalent of85.8 percent of 2014’s overall foreigndirect investment of R62 billion. Asa result, the United Nations’Environment Programme (UNEP)ranked South Africa in the top 10countries in the world investing inrenewable energy in 2014.

Each independent powerproducer is also actively engagedwith the relatively poorercommunities where they operate,contributing to livelihoods andincome-generation. So farindependent power producers havecommitted a total of R19.1 billiontowards socio-economicdevelopment initiatives. Alreadythe impact of this programme onpeople’s lives is tangible and willcontinue throughout the fulllifespan of the plants.

Benefits of these projects shouldincrease further as more renewableenergy reaches commercialoperation and feeds electricity intothe national grid. By making morepower available that is cost-effectiveand environmentally friendly,contributing to the economy, jobcreation and socio-economicdevelopment, renewable energy isrenewing and energising SouthAfrica in many different ways.

n Breytenbach is Head of the IPPOffice, Department of Energy, SouthAfrica. She is one of the panellists inthe Finance Mechanisms session,which takes place at SAIREC on 5October 2015 in Hall 1 of the CapeTown International ConventionCentre (CTICC) from 4:30pm to 6pm.

“BY MID 2015 MORETHAN 6 000

MEGAWATTS OFELECTRICITY HADBEEN PROCURED

FROM INDEPENDENTPOWER PRODUCERS

Electricity power lines and cooling towers are seen at Eskom’s Kendal coal-fired power station in Delmas, SouthAfrica. South Africa aims to reduce it’s reliance on fossil fuels such as coal and diesel, and diversify the nationalenergy mix to produce 41.8 percent from renewable energy sources, and a further 6.1 percent from hydro-electricity within two decades.

n Over the last five yearsR192.6 billion has been invested inrenewable-energy projects inSouth Africa

n Of this, 28% (R53.2 billion)was foreign investment andfinance, which is almostequivalent to total foreign directinvestment in the SA economy in2014, which totalled R62 billion

n Construction and operationof renewable-energy projects hascreated 19 050 job years for SouthAfricans

n The United Nations’Environoment Programmeranked South Africa in the top 10countries in the world investing inrenewable energy in 2014

n To date, a total of R19.1billion has been committed tosocio-economic developmentinitiatives in communitieshosting renewable-energyprojects

n So far, SA’s operationalrenewable-energy generationcapacity is the equivalent of acarbon dioxide reduction of 4.4million tonnes

RENEWABLE ENERGY IN SA:ACHIEVEMENTS TO DATE

AndreO

Highlight

OCTOBER 2015 3South AfricanInternational


CSIR study highlights thefinancial benefits of renewableenergy projects in South Africa

DDRR.. TTOOBBIIAASS BBIISSCCHHOOFF--NNIIEEMMZZ

THE study is an updateand continuation of aninitial study that waspublished in Januarythis year, whichcovered the calendar

year 2014. The benefits earned weretwo-fold.

The first benefit, derived fromdiesel and coal fuel cost savings, ispinned at R3.6 billion. This isbecause 2.0 TWh (terawatt-hours) of

wind and solar energy replaced theelectricity that would haveotherwise been generated fromdiesel and coal (1.5 TWh from diesel-fired open-cycled gas turbines and0.5 TWh from coal power stations).

The second benefit is the savingof R4.6 billion to the economyderived from 203 hours of so-called'unserved energy' that were avoidedthanks to the contribution of thewind and solar projects.

During these hours the supplysituation was so tight that somecustomers' energy supply wouldhave had to be curtailed ('unserved')if it had not been for therenewables.

The avoidance of unservedenergy cumulated into the effectthat during 15 days from January toJune 2015 load shedding wasavoided entirely, delayed, or ahigher stage of load sheddingprevented thanks to thecontribution of the wind and PVprojects.

These direct cash savings on fuelspending to Eskom and themacroeconomic benefits of having

avoided "unserved energy" arecountered by the tariff payments tothe independent power producers ofthe first wind and photovoltaic (PV)projects.

They amounted to R4.3 billionfrom January to June 2015.

Therefore, renewablescontributed a total net benefit of R4billion (or R2 per kWh of renewableenergy) to the economy.

As for wind alone, these projectswere cash positive for Eskom to thetune of R300 million; saving R1.5billion in fuel payments whilecosting only R1.2 billion in tariffpayments to IPPs.

Dr. Tobias Bischof-Niemz, whoheads up the CSIR's Energy Centre,explains: “The study was based onactual hourly production data forthe different supply categories ofthe South African power system(e.g. coal, diesel, wind, PV). We’vedeveloped a methodology at theCSIR Energy Centre to determinewhether at any given hour of theyear, renewables have replaced coalor diesel generators, or whetherthey have even prevented so-called

'unserved energy'"This CSIR methodology was fed

with cost assumptions frompublicly available sources, such asEskom's 2015 financial results forcoal and diesel costs, or theDepartment of Energy'spublications on the average tariffsof the first renewables projects, orthe Integrated Resource Plan on thecost of unserved energy.

Because the study is an 'outside-in' analysis of the systemoperations, conservativeassumptions for the system effectsand for the costs of coal werechosen. The actual cost savings thatrenewable energy sources broughtduring the first six months of 2015are therefore presumably higherthan shown by the study.

“Our study shows that in thefirst six months of 2015, the trendthat started in 2014 continued andspeeded up, and that renewableenergy provided a huge netfinancial benefit to the country.Without the solar and wind projects,we would have spent significantadditional amounts on diesel, and

energy would have had to be‘unserved’ during more than 200additional hours from January toJune 2015,” Bischof-Niemz says.

“What is more, the cost per kWhof renewable energy for newprojects is now close to 80c for solarPV and between 60c – 70c for windprojects. That will keep the netfinancial benefits of newrenewables positive, even in afuture with a less constrainedpower system,” he says.

The CSIR will continue tomonitor the fuel-saving andsecurity-of-supply benefits ofrenewable energy.

More information and theresults of this study can be obtainedat the CSIR website.

n Dr. Tobias Bischof-Niemz is theChief Engineer: R&D Core (Energy),Council for Scientific and IndustrialResearch (CSIR), South Africa. Dr.Bischof-Niemz is one of the panelistson the Energy Storage session,taking place on Tuesday 6 October2015 in Auditorium 2 of the CTICCfrom 11:30am – 1pm.

A second independent study by the Council for Scientific and Industrial Research (CSIR) foundthat renewable energy from South Africa's first wind and solar (photovoltaic) projects created R4

billion more financial benefits to the country than they cost during the first six months of 2015

A solar PV rooftop

installation at

Woolworths head

office in Longmarket

Street, Cape Town.

Picture:

Nick Carpenter

AndreO

Highlight



Bonn, Germany, 2004: TheInternational Conference forRenewable Energies held in Bonn,Germany in 2004, was the first IRECconference. It charted the trajectoryfor the remaining IRECS that havebeen held to date.

Beijing, China, 2005: The Bonnconference was followed by the 2005Beijing conference the organisationof which was significant as 2005was the era of high oil prices.

In response, the 2005 IRECstrongly advocated the adoption ofrenewables by states in order toreduce the effects of this highpricing.

The Beijing conference wasinterested in leading the campaignagainst local and global dependenceon unclean forms of energy.

Washington, USA, 2008: TheWashington Conference onrenewables in 2008 (WIREC)demonstrated the United States’

commitment to developing analternative pathway to energygeneration, which was especiallysignificant given the country’s fossilfuel reserves and demand. Thenumber of pledges made by theUnited States during the pledgeceremony was an indication of USreadiness to engage in therenewables arena.

Delhi, India, 2010: The fourthIREC took place in Delhi, India in2010. The Indian Solar Mission wasa momentous outcome of thisconference.

Abu Dhabi, 2013: The ADIRECconference, the most recent of theIRECs, was hosted by the UnitedArab Emirates in January 2013.

The ADIREC conference wasorganised by an oil producing state,which acknowledged the economicand environmental benefits ofrenewables, as more domesticproduction of renewables would

result in greater fossil export(income) on the part of the UnitedArab Emirates.

IRECs continue to attractthousands from around the worldFrom the first InternationalRenewable Energy Conference inBonn (2004), to the Abu-Dhabiconference in 2013, the number ofparticipants has increased inparallel with the range ofstakeholders participating in theseevents. The Bonn conference hosteda total of 3,600 participants; theBIREC conference 1,200representatives while the WIRECconference hosted over 9,000participants from 125 countriesincluding 103 ministers.Participation in the IREC increasedat the DIREC conference with 13,500participants, while ADIREC hadover 30,000 individuals from over160 countries from different sectors.

The IRECS have been organisednot only to focus on discussions on aparticular issue area but also to

accommodate other side events.The 2008 WIREC conferencefeatured more than 70 official sideevents and a world-class exhibitionshow, which included exhibits from246 rganisations.

The DIREC conference hostedover 600 exhibitors from more than70 countries and over 20,000 personsvisited the exhibition stands.

The incorporation ofrenewables in the energy portfolioof states and organisations hasincreased significantly spurring theco-option of renewables into otherecosystem services.

All the IREC conferences havebeen characterised by both politicaland technological activities withthe adoption of political declarationat the governmental and inter-governmental levels as well ascommitment to pledges from theprivate and industry sectors.

ADIREC 2013 results in apolitical declaration on renewablesAffirming their commitment to the

development of renewables bothgovernmental andintergovernmental stakeholders atthe ADIREC adopted a politicaldeclaration on renewables:

“As the Ministers andGovernment Representativesparticipating in the Abu DhabiInternational Renewable EnergyConference 2013 (ADIREC), with theactive engagement and support ofbusiness and civil society leaders,we acknowledge the many benefitsprovided by renewable energy andencourage its growing prominencein our energy portfolios,recognizing in particular its abilityto enhance energy security andsustainable development; enableclean energy access and alleviatepoverty, especially for communitiesand individuals with limited accessto modern energy services; createeconomic and job opportunities;improve air and water quality; andmitigate greenhouse gasemissions.”

The most recent of the IRECs was hosted by the United Arab Emirates in January 2013; representatives of 160 countries attended the event.

History of the InternationalRenewable Energy Conferences



2014: Record year forrenewable energy globally

AARRTTHHOOUURROOSS ZZEERRVVOOSS

THERE has been arising awarenessworldwide thatrenewable energy andenergy efficiency arecritical not only for

addressing climate change, but alsofor creating new economicopportunities and for providingenergy access to the billions ofpeople still living without modernenergy services.

Over the past decade, andparticularly in recent years,advances in renewable energytechnologies, global increases incapacity, and rapid cost reductionshave been due largely to policysupport, which has attractedsignificant investment and hasfurther driven down costs througheconomies of scale.

Renewable energy policytrends

Renewable energy developmentsin 2014 continued to be shapedlargely by government policy.Renewables faced challenges insome countries resulting frompolicy changes or uncertainties,such as the imposition of new taxeson renewable generation in Europeand the expiration of the US federalproduction tax credit.

However, the number ofcountries with renewable energytargets and policies increased againin 2014, and several jurisdictionsmade their existing targets moreambitious—including a risingnumber with 100% renewableenergy or electricity targets. As ofearly 2015, at least 164 countries hadrenewable energy targets, and anestimated 145 countries hadrenewable energy support policiesin place.

Policymakers continued to focuson adapting existing policies tokeep pace with rapidly changingcosts and circumstances. Recenttrends include merging ofcomponents from different policymechanisms; a growing linkage ofsupport between the electricity,heat, and transport sectors; anddevelopment of innovativemechanisms to integrate risingshares of renewables into theenergy mix.

The sector’s growth continues tobe hampered by more than $550billion in annual subsidies for fossilfuel and nuclear energy, whichperpetuate artificially low energyprices from those sources,encouraging waste and impedingcompetition from renewables.

Renewable energy capacityadditions help to reduce CO2

emissionsIn 2014, renewables made up an

estimated 59% of net additions toglobal power capacity andrepresented far higher shares ofcapacity added in several countriesaround the world. By year’s end,renewables comprised an estimated27.7% of the world’s powergenerating capacity. This wasenough to supply an estimated22.8%of global electricity demand.

With 135 gigawatts added, total

installed renewable power capacityworldwide stood at 1712 gigawatts,up 8.5% from the year before.

Solar photovoltaic capacity hasgrown at the most phenomenal rate(up 68-fold, from 2.6 GW in 2004 to177 GW in 2014), with strong growthalso in wind power capacity (upalmost 8-fold, from 48 GW in 2004 to370 GW in 2014). Heating accountedfor about half of world energyconsumption in 2014. Renewableenergy supplied more than 25% offinal energy use in the heatingsector, of which over two-thirds wastraditional biomass. Modernrenewable energy supplied theremaining third, or about 8% of theworld’s total final energy use forheat production.

The increased uptake ofrenewables helped the worldachieve a sustainable developmentmilestone: for the first time in fourdecades, the world economy grew

without a parallel rise in carbondioxide emissions.

Despite the world’s annual 1.5%increase in energy consumption inrecent years and 3% GDP growthlast year, CO2 emissions wereunchanged from 2013 levels: 32.3billion metric tons.

The landmark “decoupling” ofeconomic and CO2 growth is due inlarge measure to China's increaseduse of renewable resources, andefforts by countries in the OECD topromote sustainable energysources, according to theRenewables 2015 Global StatusReport.

This is particularlyencouraging, given the UN’s majorconference in December in Paris,where countries will announceand/or confirm actions to mitigateclimate change, setting the stage forfuture investment in renewablesand energy efficiency.

Renewable energy investmentNew investment in renewable

power and fuels (not includinghydropower >50 MW) increasedworldwide by 17% over 2013, to US$270.2 billion. Including large-scalehydropower, new investment inrenewable power and fuels reachedover US$ 301 billion.

Global new investment inrenewable power capacity wasmore than twice that of investmentin net fossil fuel power capacity,continuing the trend of renewablesoutpacing fossil fuels in netinvestment for the fifth yearrunning.

Investment in developingcountries was up 36% from theprevious year to US$ 131.3 billion.Developing country investmentcame the closest ever to surpassingthe investment total for developedeconomies, which reached US$ 138.9

billion in 2014, up only 3% from2013. China accounted for 63% ofdeveloping country investment,while Chile, Indonesia, Kenya,Mexico, South Africa and Turkeyeach invested more than US$ 1billion in renewable energy.

By dollars spent, the leadingcountries for investment wereChina, the United States, Japan, theUnited Kingdom and Germany.Leading countries for investmentsrelative to per capita GDP wereBurundi, Kenya, Honduras, Jordan,and Uruguay.

Renewable energyemployment

Employment in the sector isgrowing fast as well. According toIRENA’s assessment, an estimated7.7 million people worldwideworked directly or indirectly in therenewable energy sector in 2014.

Energy accessMore than one billion people, or

15% of humanity, still lack access toelectricity.

With installed capacity ofroughly 147 GW, all of Africa hasless power generation capacity thanGermany. Distributed renewableenergy technologies are improvingthe situation, providing essentialand productive energy services inremote and rural areas. Forexample, off-grid solar PV (whichattracted roughly US $64 billion in2014) has a significant and growingmarket presence.

It is clear that renewables havebecome a mainstream energyresource. The penetration and useof both variable and non-variablerenewables are increasing, therebycontributing to diversification ofthe energy mix. Many renewableenergy technologies haveexperienced rapid expansion;however, growth in renewablescapacity as well as improvements inenergy efficiency are below therates necessary to achieve theSustainable Energy for All(SE4ALL) goals of doubling thelevel of renewable energy, doublingthe global rate of improvement inenergy efficiency, and providinguniversal energy access by 2030.

Moving forwardIn order to support increased

energy access, REN21 has produceda SADC Renewable Energy andEnergy Efficiency Status Report.(See article SADC and the renewableenergy opportunity). This reportprovides an in-depth look at howrenewables are progressing in theregion. The publication is a keyinput to the South AfricanRenewable Energy Conference(SAIREC) 2015, serving todemonstrate the immense potentialof the region in providing clean,affordable energy services for all.

n Zervos is the chair of REN21.Dr Zervos is a keynote speaker in theconference opening taking place on 5October in Auditorium 1, CTICC,from 9am to 10:30am.

REN21’s Renewables 2015 Global Status Report bears testament to the factthat 2014 was another record year for renewable energy.

n As of early 2015, at least 164countries had renewable energytargets and an estimated 145countries had renewable energysupport policies in place.

n By the end of 2014,renewables comprised anestimated 27.7% of the world’spower generating capacity. Thiswas enough to supply anestimated 22.8% of globalelectricity demand.

n With 135 gigawatts added,total installed renewable powercapacity worldwide stood at 1712gigawatts, up 8.5% from the yearbefore.

n Solar photovoltaic capacityhas grown at the mostphenomenal rate (up 68-fold,from 2.6 GW in 2004 to 177 GW in

2014).n There has been strong

growth in wind power capacity(up almost 8-fold, from 48 GW in2004 to 370 GW in 2014).

n In 2014, for the first time infour decades, the world economygrew without a parallel rise incarbon dioxide emissions.

n Including large-scalehydropower, new investment inrenewable power and fuelsreached over US$ 301 billion in2014.

n Investment in developingcountries was up 36% from theprevious year to US$ 131.3billion. China accounted for 63%of developing countryinvestment, while Chile,Indonesia, Kenya, Mexico, South

Africa and Turkey each investedmore than US$ 1 billion inrenewable energy.

Available publicly at:www.ren21.net/gsr, REN21’sRenewables Global Status Reportis the 10th annual edition of theworld’s most frequently-referenced report on the globalgreen energy market, industryand policy landscape. It is theresult of collaboration of over500 experts from around theworld.

Country information for 133countries was used as basis forGSR2015 preparation.

The data received is featuredon the newly launched REN21Renewables Interactive Map(www.ren21.net/map).

RENEWABLES 2015 GLOBAL STATUS REPORT (GSR): HIGHLIGHTS

n Develop stable andpredictable policies that canadapt to a changingenvironment

n Showcase andcommunicate renewables abilityto provide industrial-scale

electricity supplyn Create a level playing field

to increase cost-competivenessbeyond PV and wind

n Renewable power: energysystem thinking is required

n Increase support to the

renewable heating and coolingsector

n Improve access to financein developing countries

n Drive good decisions withgood data

Kouga wind farm, at Oyster Bay in the Eastern Cape, consists of 32 turbines each capable of generatingup to 2.5MW of power.

IN BRIEF: POLICY RECOMMENDATIONS OF THE RENEWABLES GSR 2015



CCHHRRIISSTTIINNEE LLIINNSS

THE rapid reduction incost for manyrenewable technologiescontinues. Solar PVcosts are decliningrapidly due to high

learning rates for PV modules andthe current rapid deployment.

Costs for solar photovoltaicgenerators declined by around 50%between 2010 and 2014. If thesetrends continue, grid parity withresidential electricity tariffs willsoon be the norm in manycountries, rather than theexception.

Wind power is now one of the

most competitive renewabletechnologies and, in developedcountries with good windresources, onshore wind is oftencompetitive with fossil fuel firedgeneration. The wind turbine pricesfell in the 1990s and remainedsteady over the past approximately10 years.

However the average capacityfactor steadily grew over the pastdecade. More efficient turbinesgenerate more electricity perturbine leading to an overallreduction of generation costs.

CSP is increasingly beingdeployed at scale and costs arecoming down. Solar towers areemerging as a particularlyimportant generation option inareas with high direct solarirradiation, while CSP systems canalso help with the integration ofvariable renewables when they areused in combination with low-costthermal energy storage to generateelectricity when there is no sun.

Hydropower capacity additionsin the five-year period end-2008 to2013 were significantly greater thanduring the earlier part of thedecade. Hydropower now has aglobal installed capacity of aroundapproximately 1,055 GW by 2014and, is currently the largest

renewable power generation source.At good sites it provides thecheapest electricity of anygeneration technology.

Many biomass power generationtechnologies are mature andbiomass is a competitive powergeneration option wherever low-cost agricultural or forestry wasteis available.

In addition, new technologiesare emerging that show significantpotential for further cost reduction.Distributed renewable technologies,such as rooftop solar PV and smallwind, can provide new capacitywithout the need for additionaltransmission and distributioninvestment and therefore cannot bedirectly compared with largeutility-scale renewable solutions.

Data collected to date suggestthat the cost of supportingrenewables with well- designedsupport packages is declining overtime and is much cheaper than astatic analysis of costs wouldsuggest.

New technologies open newmarket opportunities and createnew jobs. The global renewableenergy workforce encompasses abroad variety of jobs andoccupations, ranging from low- tovery high-skilled.

Global statistics aboutrenewable energy employment bycountry and technology areincomplete and methodologiesinconsistent however, an estimateabout based on documentedemployment indicates that between2004 and 2014 the level ofemployment doubled, from about 3million in 2004 to approximately 6.5

million by the start of 2014. By theend of 2014 the InternationalRenewable Energy Agency (IRENA)estimated that direct and indirectjob in renewable energy worldwidereached 7.7 million.

In terms of employment ,solarPV is the largest employer with 2.5million jobs, most of which areconcentrated in China due to itsundisputed lead in manufacturingas well as a rapidly expandingdomestic market. Japan, the UnitedStates, and Bangladesh have alsoboosted their solar PV employment.Global wind power employmentcrossed the 1 million jobs thresholdin 2014.

With renewable energycomprising 27.7% of global powergeneration capacity and meeting22.8% of global electricity demandit is clear that renewables have acentral role in play in any nationalenergy mix.

n Lins is the Executive Secretaryof REN21. Ms. Lins will beparticipating in the final sessionentitled “Key findings from SAIRECand adoption of the SAIRECdeclaration”, taking place inAuditorium 1, CTICC, from 4:30pmto 6pm.

Renewable energy’s improved competitiveness continues, driven by the rapid deployment ofrenewables, which is being encouraged by support policies to overcome barriers to their use

“AT GOOD SITES IT(HYDROPOWER)

PROVIDES THE CHEAPEST ELECTRICITY OF

ANY GENERATIONTECHNOLOGY

The cost of renewable energycontinues its rapid decline

The Upper VaalRiver Water

Management Areasupports electricitygeneration in the

Gauteng area.



South Africa and thequest for a green economy

KKAARREENN SSUURRRRIIDDGGEE--TTAALLBBOOTT

SHOUTH Africa is amongthe highest emitters ofcarbon dioxide in theworld, currently ranked12th in terms of topemitters per capita, since

more than 80% of our primaryenergy requirement is derived fromfossil fuels.

There is an urgent need toreduce fossil fuel dependency anddiversify energy mix and supply,thereby reducing South Africa’scarbon footprint and ensuringenergy security.

The country responded to thiswith a supportive policy andlegislative framework to exploit theexcellent local renewable energyresources, especially wind andsolar.

South Africa’s renewable energysector experienced explosivegrowth in the past few years withinvestment of more than $5.5 billionin 2012, up from $30 million in 2011,representing an impressiveincrease of 20,500%.

The rapid investment growthover the past two years made SouthAfrica the ninth-leading destinationfor clean energy investment amongthe Group of 20 (G-20) of the world’sdeveloped and emerging economies– this after occupying the last spotin 2011.

South Africa’s leading positionhas been secured through asupportive policy environment,coupled with a secure investmentframework established by theDepartment of Energy’s (DoE)Renewable Energy IndependentPower Producer ProcurementProgramme (REIPPPP).

South Africa is currentlyfocusing on, among others, solarand wind energy technology roll outat commercial scale in order to addto the electricity grid.

These are globally maturetechnologies that are beingimplemented in the country forlarge-scale power generation.

Wind turbines (similar to windmills) convert kinetic energy(energy that an object possesses inmotion) from the wind, intomechanical energy through windpower. This mechanical energy canthen be used to produce electricityand the device is called a windturbine or wind power plant.

However, if the mechanicalenergy is instead used to drivemachinery viz. grinding grain orpumping water, the device knownas a windmill or wind pump.

Solar energy/sunlight can be

harnessed through a variety ofdifferent technologies, these canroughly be separated intoconcentrated solar power (CSP) andphotovoltaic (PV).

CSP technologies rely onmirrors/reflective surfaces thatfocus the sun’s rays onto a centralreceiver point, causing the totalsolar energy to be magnified andthus generating heat, which can beused to produce power.

Some examples of CSPtechnologies are: Scheffler andSterling dishes, trough, linearFresnel and central receiver/powertower.

PV technologies generateelectrical power by converting solar

radiation into direct currentelectricity.

This is achieved usingsemiconductors that exhibit thephotovoltaic effect (photons oflight/light packages excitingelectrons that act as charge carriersfor an electric current).

This takes place inside solarpanels composed of solar cellscontaining a photovoltaic materialsuch as: monocrystalline silicon,polycrystalline silicon, amorphoussilicon, cadmium telluride, andcopper indium galliumselenide/sulfide.

South Africa is demonstratingits commitment to a moresustainable future growth path

through the support of renewableenergy and energy efficiencymeasures, together with skillsdevelopment and job creationthrough fostering a green economy.

Prospects for renewable energygeneration in South Africa areincreasingly positive given asupportive policy and legislativeframework coupled with excellentresources, especially wind andsolar.

The contribution of a greeneconomy to economic growth andjob creation is furthermorepromising and South Africa ispreparing to play a leading role inrenewable energy deployment. Inorder to cater to this growing sector

in South Africa, expertise and skillswill need to be cultivated.

n Surridge-Talbot is the CentreManager for Renewable EnergyCentre of Research and Developmentat the South African NationalEnergy Development Institute(SANEDI).

She will be participating in thesession on Skills Development,taking place on Monday 5 October inHall B, CTICC, from 4:30pm to 6pm.

“THERE IS AN URGENTNEED TO REDUCE

FOSSIL FUELDEPENDENCY,

AND DIVERSIFY THE ENERGY MIX

AND SUPPLY

SA has abundant naturalresources that can be harnessedfor energy production.

n South Africa boasts one ofthe best solar regimes in the world,Measured at 4.5 to 6.6 kWh/m2solar is one of the most abundantrenewable energy resources in thecountry;

n The country has a reasonablewind energy resource (an averageof 8 m/s measured at 80 m) is

available in geographicallydispersed locations, allowing forsecurity of supply;

n Biomass for energy use isrestricted due to water availabilityin South Africa, but energy fromwaste, utilising the estimated 60 –70 million m3 of waste generatedannually, is more readily availableand exploitable;

n Despite limited wateravailability, 1400 MW of pump

storage is currently utilised byEskom from two sites in SouthAfrica, while micro-hydroapplications at specific sites offerfurther opportunities; and

n South Africa has a world-class wave energy (10 – 50 kW/mcrest length) and ocean current (70– 85 Sv peaking at 2 m/s) resource,which is potentially exploitableupon the availability ofcommercially viable technologies.

SOUTH AFRICA’S ABUNDANT RENEWABLEENERGY RESOURCES

Over the last five years, R192.6 billion has been invested in renewable-energy projects in South Africa.



Focus on green energy reapsrewards for SAIREC’s host city

EEVVAANN RRIICCEE

IT IS fitting that the 2015edition of the InternationalRenewable EnergyConference (SAIREC) istaking place in Cape Town inOctober. South Africa is

blessed with tremendous renewableenergy potential, and there hasbeen major progress in the last fouryears in bringing renewable energyinto the national electricity mix.

The Department of Energy’sRenewable Energy IndependentPower Producer ProcurementProgramme (REIPPPP) hasapproved 92 large renewable energyprojects with a combined capacityof 6,327MW, making the countryone of the leading renewableenergy markets globally.

The programme has been laudedinternationally, for good reason. Ithas resulted in almost R200bn ofprivate investment into renewableenergy projects, at a time when thenational utility Eskom has beenstruggling to raise the capitalrequired for its build programme.

The value of the competitivebidding process has beendemonstrated by the drop in realkilowatt-hour prices by 60% and75% for wind and solar photovoltaic(PV) respectively over the fourbidding rounds in 3 years.

The average prices in Round 4(62c/kWh for wind and 78c/kWh forsolar PV) are globally competitive,and wind now represents thecheapest source of new powergeneration available to SouthAfrica. All this has been achievedwith increasing levels of localcontent each round.

And critically, during the time ofenergy supply shortages, theseprojects have been delivered on timeand budget, with over 30 of theseprojects already connected andsupplying power into the grid.

The REIPPPP was the catalystfor the regional government in theWestern Cape and the City of CapeTown to prioritise support for thedevelopment of the renewableenergy industry and set theambition of making the region asthe green economy hub of SouthAfrica and, over time, Africa.

This goal is well on its way tobecoming a reality, and in a veryshort space of time Cape Town hasestablished itself as the centre of

the local renewable energy industry. Cape Town-based project

developers have been involved inmore than 60% of the successfulprojects in the REIPPPP. The city isalso home to a number of theprofessional services firms thathave been involved in theenvironmental assessments, legalsupport, insurance and financing ofthe projects.

There has also been animpressive growth in localmanufacturing of renewableenergy components in Cape Townover this period. There are nowthree solar PV modulesmanufacturers, three invertermanufacturers and two windturbine tower manufacturers inCape Town. This includes a mix oflocally grown companies andleading international originalequipment manufacturers,including Gestamp RenewableIndustries (GRI), Jinko Solar, SMA,AEG and SunPower. Investments inthese facilities have exceededR540m, and resulted in over 600 newjobs.

Key to attracting thesecompanies was the valueproposition presented by the region.This includes proximity to some thebest renewable energy resources inthe country, access to ports forimports and exports, a Citygovernment that is committed tothe sector and the ability to accessthe skills and knowledge requiredfor the industry.

The City of Cape Town has longshown leadership in the renewablesarena. They signed an off-takeagreement with Darling wind farm,

the country’s first renewable energyindependent power producer, nearlyten years ago.

In 2011, the City, working withGreenCape, a sector developmentagency funded by the Western CapeGovernment and City of Cape Townthat focuses on supporting theaccelerated development of thegreen economy, established aGreenTech hub in Atlantis, locatedaround 50kms north of the city.

Atlantis was specifically chosenas it is a highly suitable industrialsite for the manufacture of the verylarge components that make upwind turbines. The City has made78ha of industrial land available toinvestors, as well as a suite of otherincentives.

The City’s foresight inunderstanding the needs of thismarket has borne fruit, and in 2014GRI, a Spanish multinational steelcompany, established a windturbine tower manufacturing plant,which is already supplying towersto Round 3 REIPPPP projects.Atlantis is now also being proposedas a Special Economic Zone with afocus on GreenTech manufacturingand services.

In 2014 the City of Cape Townonce again took the lead nationallyand developed Small ScaleEmbedded Generation (SSEG) rulesand feed-in tariffs for rooftop solarPV. This allows businesses andhomeowners to generate some oftheir own power and feed excesselectricity back into the City’sdistribution network. This allows amyriad of installers andcomplementary businesses toservice the smaller scale market. Ithas generated significant interest,with applications for more than20MW received in the first ninemonths.

The City also has anaccreditation programme for solarwater heater providers. And theSouth African Renewable EnergyBusiness Incubator (SAREBI), alsolocated in the proposed GreenTechSEZ in Atlantis, is assisting smalland micro enterprises looking toaccess opportunities in therenewable energy sector.

Cape Town is also home to someof the leading academic institutionsin Africa, which house severalcentres with a specific focus ofrenewable energy: The Centre forSustainable and Renewable Energy

Studies at Stellenbosch University,the Energy Research Centre at theUniversity of Cape Town, and themore recently established EnergyStorage Innovation Lab at theUniversity of the Western Cape andthe South African RenewableEnergy Technology Centre(SARETEC) at the Cape PeninsulaUniversity of Technology. Each ofthese institutions are responsiblefor providing South Africans withthe necessary technical ,engineering, planning and policyskills to support this industry inSouth African and the rest ofAfrica.

SARETEC has specifically beenset up to train wind turbine andsolar PV technicians, providingopportunities for young SouthAfricans to access the operationsand maintenance job opportunitiesat our renewable energy plants forthe coming decades.

Cape Town and South Africahave already begun to reap thebenefits – investment, jobs and amore sustainable development path– of a concerted effort to unlockopportunities in the green economy.This provides a tangible example tothe foreign dignitaries and decision-makers that will be coming downhere in October for SAIREC of themassive potential that renewableenergy presents for South Africaand for the rest of Africa.

n Rice is the CEO of GreenCape.He will be participating in thesession on Socio-EconomicDevelopment, taking place onMonday 5 October in Hall B, CTICCfrom 2:30pm to 4pm.

EEDDIITTEEDD BBYY RRIICCHH MMKKHHOONNDDOO AANNDD MMAARRIISSAA BBEERRNNDDSSEENN OOFF TTHHEE MMEEDDIIAA AANNDD WWRRIITTEERRSS FFIIRRMM ((WWWWWW..MMEEDDIIAAAANNDDWWRRIITTEERRSSFFIIRRMM..CCOOMM))

The South African International Renewable Energy Conference (SAIREC) is taking place at the Cape Town InternationalConvention Centre.

“CAPE TOWN IS HOMETO SOME LEADING

ACADEMIC INSTITUTIONS,WITH

A SPECIFIC FOCUS ON RENEWABLE

ENERGY

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