CEO Voice - March 2024
Dear SAWEA Members
March has been another eventful month for SAWEA, our members, and the industry at large. The Association continues to make progress in our efforts to advance the wind energy sector and actively contribute toward the countries energy planning to include wind energy.
Wrapping up what has been a progressive quarter for the industry, the association’s advocacy has demonstrated the need for continued industry engagement and collaboration on critical matters, that include but not limited to Bid Window 7, the draft Integrated Resource Plan (IRP) 2023, and general industry challenges that may affect investor confidence.
Interrogating the IRP2023
Interrogating the IRP2023 was our primary focus during this quarter where we noted a number of concerns. SAWEA has been leading the narrative publicly on the draft IRP 2023, specifically questioning the modelling and assumptions used to determine the vastly diminished allocation for wind energy in the period leading up to 2030.
In this respect, we have called for an overhaul of all the scenarios and pathways in both Horizon 1 and 2 of the draft plan before public consultation is concluded. SAWEA supports a diverse energy mix incorporating a variety of technologies, but we believe wind energy has a greater role to play.
Thank you to all the members who engaged in conversations around the draft IRP 2023 and whose comments and insights have been included in our submission to the DMRE. Please find the Association’s submission to DMRE here.
Approaching Bid Window 7 submissions
As we approach the submission of BW7 bids, now due on the 30th of May 2024, the wind energy sector seeks to rebound from the failure for wind in BW6. SAWEA is clear that the success of BW7 is critical to restore investor confidence, stimulate economic growth, and achieve the renewable energy targets outlined in the Integrated Resource Plan (IRP) 2019.
Industry Collaboration
Our participation and contribution in strategic conversations with key stakeholders and within platforms such as the National Energy Crisis Committee (NECOM), particularly in the Workstream 10 Technical Committee has demonstrated to be of great value in achieving one of the association’s strategic priorities for 2024.
I will continue to support Global Wind Energy Council (GWEC) in a bid to triple renewable power usage and double energy efficiency by 2030 at the upcoming Africa Energy Forum in June 2024.
Industry Wins
It is exciting to see private PPA projects come to fruition, we celebrate the start of construction on three new wind farms in the Eastern Cape and congratulate, Enel Green Power, Sasol and partners on this achievement. We further congratulate Nordex Energy South Africa with their plans to locally manufacture concrete tower sections in the Eastern Cape Province, ushering in the creation of up to 300 local jobs within the region.
Internally, the association continues to tackle key industry topics with our Q1 standing committee meetings successfully being hosted under the newly elected Chairpersons. I would like to officially welcome Sasol as a new lead member of the Association and look forward to our collaboration through the Impofu projects construction while we advance other privately procured wind energy projects.
Bring on Quarter 2 of 2024
Looking ahead to the second quarter of the year, as we approach the 2024 National General Elections, SAWEA supports the prioritisation and advancement of energy policy landscape including the Electricity Regulation Amendment (ERA) Bill process and the Integrated Resource Plan (IRP2024).
We further support the consistent implementation of the existing policies to ensure a successful Bid Window 7, with special focus on resolving the grid access challenges facing the industry that continue to detract from much needed new generation capacity. SAWEA remains committed to promoting and advocating for the growth of the wind energy sector and contributing to the country's energy transition and sustainability goals.
Regards,
Niveshen Govender
CEO, SAWEA
