CEO Voice - July 2024
Dear SAWEA Members,
South Africa’s Government of National Unity (GNU) appears to be establishing a stable and effective framework. We at SAWEA are heartened by the encouraging messages from President Ramaphosa and Minister of Electricity and Energy, Kgosientso Ramokgopa, in support of renewable energy.
In his recent address to Parliament, the President highlighted that South Africa is "undergoing a renewable energy revolution, expected to be the most significant driver of growth and job creation in the next decade and beyond." Additionally, Minister Ramokgopa has expressed his commitment to an "ultra-aggressive" approach to rolling out renewable energy, including plans for a mega bid window aimed at procuring renewables on an unprecedented scale.
This marks a significant milestone, with the government showing unprecedented and coordinated support for the transition to renewables, which is anticipated to greatly accelerate their implementation.
Bid Window 7 Submissions Looming
As we approach the submission deadline for Bid Window 7 on 15 August, the industry’s concerns regarding grid capacity remain unresolved. SAWEA has observed inconsistencies within Eskom concerning the envisaged open energy market and its implementation, as reported in the media. Notably, there are disputes over energy distribution licenses, with Eskom urging the National Energy Regulator of South Africa (NERSA) to reject applications for private trading in energy production. This contradicts the Electricity Regulation Act Amendment Bill (ERAAB) and associated market codes under development at Eskom. Additionally, NERSA’s electricity sub-committee recommended rejecting Eskom's application to reserve grid capacity for public procurement with direct implication on BW7, and has yet to provide solutions to the grid capacity challenges. The success of BW7 with regards to wind energy remains unattainable at this stage.
Private Projects Gain Traction
We continue to encourage and celebrate the progress of private projects, with over 1.3GW of wind projects advancing to the construction phase. At SAWEA, our Implementation Standing Committee is dedicating time and effort to overcoming implementation challenges related to port congestion, load logistics, transportation, special purpose vehicles (SPVs), and project coordination for the smooth construction of wind projects.
Stakeholder Engaging
As part of our strategy, SAWEA remains committed to fostering meaningful engagements with various stakeholders to collaboratively plan for a wind-powered, energy-secure future. We are continuously engaging both Government and Sector stakeholders, advancing our advocation for more wind energy, quicker. We have issued letters of congratulations, introduction and support to the new cabinet members within Departments of interest to SAWEA. Given the severity of the grid capacity and allocation challenges facing the industry, we have scheduled discussions with Eskom’s Group CEO to align our vision and explore ways to support each other.
Climate Change Bill Promulgated
The recent signing of the Climate Change Bill into law sets the stage for renewable energy to play a more substantial role in reducing South Africa’s emissions and contributing to the global climate change response under the Paris Agreement. This Act will lead to the allocation of carbon budgets for companies, new obligations for provinces and municipalities concerning climate risks and vulnerabilities, the creation of a national adaptation strategy, transformation of the Presidential Climate Commission into a statutory body, and greater involvement of the Minister of the Department of Forestry, Fisheries and the Environment in energy matters. It also empowers citizens, businesses, and civil society to advocate for urgent climate action.
Celebrating Women in Energy
As we enter Women's Month, we honour the diversity of women who not only participate in the industry but are also leading it into the next phase. On 8 August, we will celebrate the journeys of strong women in the sector from government, finance, technical, and policy backgrounds. They will share their experiences navigating the sector and the steps they are taking to create space for other women. Please do join the conversation, by registering here!
Thank you for your continued support and commitment to advancing wind energy in South Africa.
Regards,
Niveshen Govender
CEO
