By Diana Chiyangwa
Johannesburg, South Africa: Chinese Ambassador to South Africa, Chen Xiaodong recently said that they are seeing unprecedented energy challenges in South Africa and the two countries need to cooperate more on renewables. This will help in implementation and information exchange.
2023 marks 25 years of diplomatic ties between China and South Africa, in strengthening these bilateral ties for mutual benefit.
“We will have advanced cooperation in technical training and improved professional capacity,” said Chen “
Chen noted that China Energy Investment Corporation has already been in communication with Eskom, and China’s state grid will also send a team of experts to South Africa to provide technical advice.
During his address at the first China South Africa New Energy Investment and Cooperation Conference held at Sandton Convention Centre on 14 June 2023, Minister of Electricity Dr. Kgosientsho Ramokgopa outlined the grid opportunities to attract private sector investments. A hybrid event that saw China’s keenness to help South Africa overcome its electricity crisis, and calls for cooperation on renewable and implementation.
Ramakgopa said that they are accelerating the procurement of new capacity from renewable, gas, and battery storage.
“In addition to improving the performance of the generation of installed units, in Eskom, we want to create the other sources of generation,” said Ramokgopa.
In rolling out renewable projects and reforms from the private sector, Ramakgopa indicated that, in July 2023, they are going to procure about 5000MW of a combination of PV and Solar, 1200 MW of battery storage, and 3000MW of gas and import above 100 MW.
In his presentation, Ramokgopa highlighted generational improvements with Eskom to proceed with crucial programmes, including 194. 5 MW of solar PV at retired Komati, Lethabo, and Sere power stations, and 150 MW of battery storage at Komati. Remaining determinations (including the Load Shedding Reduction Programme and the Cross Border Purchase Programme) are expected to be by July 2023 and NERSA has provided concurrence.
Ramokgopa reiterated that they need to match the location of renewable energy sources and where there is grid capacity access, and 210 billion rands are needed to both strengthen the grid and expand the lines. In the next bid window release, the 5000 MW of wind and PV, will be matched in the provinces where there is existing grid capacity. The bid windows
for independent power producers will be issued in the second and fourth quarter of this financial year ending on March 31, 2024.
A survey of project developers done by Eskom together with the South African Wind Energy Association (SAWETA) and South African Photovoltaic Industry Association (SAPVIA) shows that 66 GW of wind and solar projects are in development across the country. The greater proportion of this 66GW that are located in Gauteng, Mpumalanga, Limpopo, and Free State, have grid capacity can come on stream, and are immediately available when grid access.
In accelerating the energy project, Ramokgopa further explained that the Embedded Task Team is supporting over 100 projects to clear regulatory hurdles and enter construction as quickly as possible. In regards to the Environmental Impact Assessment Ramakgopa said that “for those wind and solar projects that are not in areas of significant sensitivity from an ecological and environmental point of view and issues of biodiversity those projects must be exempt from Environmental Impact Assessment (EIA)”
Unpacking Just Transition in South Africa and overcoming the challenges of climate change, Enterprise Minister Pravin Gordhan said that climate change and the lack of energy security impact from households, and economies and can result in geo-political issues.
Gordhan indicated that, as those changes take place, South Africa needs to be very mindful of, not just the ‘energy’ part of the Energy Transition, but also the ‘just’ part of the energy transition.
On the energy side, Minister Gordhan said “China has enabled many operations and this is something that South Africans and Africans need to be exposed to, that one of the consequences of the kind of transition we are undergoing is the impact on workers, the impact on current businesses, and the manner in which we manage the ‘Just’ part of the Just Energy Transition.
South Africa’s first opportunity to undergo changes at Komati Power Station and others. Since 2019, South Africa has been undergoing restructuring utilities into generational transmission and distribution companies. Each of the three will provide opportunities for different businesses in relation to cooperation, joint ventures, public partnerships, and investments.
While going through those changes Gordhan said that the right institution should be put in place to manage the journey of energy transition.
The Director of Investment Promotion at the Department of Mineral Resources and Energy ((DMRE) Botlhale Seageng said that South Africa is well positioned in discussions around the transition and as coal rich country the discussions we can phase out coal looking out at alternatives such as Carbon Capture Usage Storage (CCUS) and move from coal to gas.
“We are going to have a significant increase in our mining for key commodities in order for us to enable the transition,” said Seageng.
Ramokgopa is scheduled to travel to Beijing this week to meet with China’s six biggest solar panel manufacturers in order to ensure supplies of panels as the country scrounges for solutions.
