Programme Director,
Mr Christopher Ford, Board Chairman of the Droogfontein Solar Plant,
Distinguished guests,
Ladies and gentlemen.
It is an interesting irony that the energy community is meeting here today to ensure the sustainability of our country’s energy security a few days after the political community ensured our country’s political security through holding free and fair elections that are the envy of the modern world.
As you know, there is a direct link between economic development and political stability. Your immediate interest revolves around economic development. Even so, your noble endeavours would amount to zero if they were not anchored upon effective political governance and a stable political order.
As a country, we are gathered here with pride as we add yet another feather on our green economy cap characterised by the launch of the Droogfontein Solar Photovoltaic Plant. This is in keeping with our general strategic objective of migrating from a resource-based economy to a knowledge-based one.
It is against that background that the Department of Science and Technology supports the transition to a low carbon economy, which can be achieved through the inclusion of cleaner energy technology solutions of which solar energy is, but one of them. In support of government’s aspirations as contained in the Integrated Resource Plan, the New Growth Path and the National Development Plan, the department is focusing on setting up the necessary systems to support the sustainable solar energy industry. This is done through supporting research, development and innovation in the energy sector, informing and influencing energy policy decisions and supporting human capital development.
In the solar energy space, the DST is supporting and funding a number of research and development initiatives, such as the development of a solar energy resource mapping through the South African Weather Service and the finalisation of the solar energy technology roadmap in collaboration with the Department of Energy, the Department of Trade and Industry and the International Energy Agency.
The solar technology roadmap process has enabled government to align its approach on the development and deployment of solar energy technologies. The technology roadmap development process has been very consultative, and preliminary indications show that solar energy can significantly contribute to the Southern African energy mix.
The alignment includes measures to define the benefit of using solar energy as compared to the current cost of the technology, policy alignment, a more accommodating financial sector and promoting innovation, to mention but a few.
In recognition of the strategic role institutions of higher learning play in knowledge generation, the DST has been funding focused research in renewable energy for more than five years. Among the highlights was the establishment of the Centre for Renewable and Sustainable Energy Studies at the University of Stellenbosch.
This Centre, among other things, assists industry and government in ensuring that South Africa makes inroads in the renewable energy space. This is done by supporting initiatives that enable the energy market to transform towards sustainable energy solutions, knowledge generation and human capital development.
The spokes to the centre are focusing on research and development work in renewable energy across the board. The DST provides strategic guidance and funds research and development work in both solar thermal and solar photovoltaic technologies. The Solar Thermal Spoke is focusing on the development of solar thermal systems ranging from components to plants, including hardware and software.
The Spoke does work on solar thermal analysis, plant design methodologies, the next generation of Concentrated Solar Power plants that can use dry cooling, thereby optimising power production in water stressed regions; and investigates cost-effective thermal storage using indigenous materials. This work is done at the Universities of Stellenbosch, Pretoria and KwaZulu-Natal.
The Photovoltaic Spoke is focusing on the reduction of electricity generation costs by increasing efficiencies, investigating different photovoltaic materials, understanding the different generations of photovoltaic technologies, photovoltaic systems characterisation and lifetime of photovoltaic systems. This work is done at the Universities of Fort Hare and Nelson Mandela Metropolitan.
It is foreseen that the DST’s funding and support to renewable energy research and technology development, as well as to human capacity development, will ultimately also benefit initiatives such as the Droogfontein Solar Photovoltaic plant through the provision of technical expertise and capabilities and trained and competent people that can address the needs of such plants, as well as arriving at new solutions, products and processes to address future South African solar photovoltaic plants.
The Renewables 2011 Global Status Report indicates that there has been growth in the solar energy front with respect to installed capacity with the photovoltaic capacity added worldwide estimated at around 17 000 MegaWatt, while concentrated solar power has added more than 740 MW between 2007 and 2010. As the manufacturing of solar PV cells continues to shift to Asia, the prices continue to decline and the market conditions are changing rapidly.
The South Africa government has adopted the New Growth Path that has the Green Economy as one of its key pillars. The Green Accord, a commitment by stakeholders arising from the pursuit of this strategic pillar, further identifies that among other renewable energy sources, the solar and wind energy industries will aim to create at least 50 000 green jobs by 2020.
It also committed to create local industrial capacity beginning with an initial minimum target of 35 percent localisation in pursuit of an aspiration target of 75 percent local content.
The 2010 Integrated Resource Plan also commits to increased renewable energy content in the energy system, with approximately 9 400 MW expected to come from solar energy by 2030. The Integrated Resource Plan is currently under review, and this process may provide even greater opportunities to enhance solar energy’s contribution into the energy system.
In pursuit of the goal of obtaining 10 000 GigaWatt per Hour of renewable energy by 2013, the Minister of Energy determined that 3 725 MW will be required from Independent Power Producers, and this informed the renewable energy allocation in the Integrated Resource Plan. This Plan is aligned to the National Development Plan and seeks to achieve a target of 42 percent of electricity generated from new capacity in South Africa to come from renewable energy.
In order to implement the introduction of renewable energy, Government established the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which is being implemented in phases commonly referred to, as bid windows. In the first and second bid windows, independent power producers (IPPs) were awarded contracts to produce approximately 2 400 MW of renewable energy.
The third bidding window, which is close to finalisation, showed an increasing appetite by IPPs to produce even more renewable energy at reasonable competitive prices. The allocation for the first and second bid windows was 1 415 MW and 1 275 MW respectively.
The allocation for the third bid window was 1 473 MW, but according to the Department of Energy (DoE) they received bids amounting to 6 023 MW in total. This clearly shows that the investment potential is more than the allocation made based on government policy. A total amount of R100 billion was invested in the economy by private investors through the REIPPPP, creating approximately 14 000 jobs.
The recent engagements by the DoE with IPPs indicated that the following areas required further attention, including strengthening the existing model of community participation; regular interaction between government and IPPs, effective co-ordination between the three spheres of government; accelerating the upgrade of existing grid infrastructure and the development of new infrastructure, ensuring certainty in the allocation of MWs, and inclusion of storage capacity in the procurement requirements.
The efforts and the vision I have just highlighted have translated into concrete reality as evidenced by today’s launch of the Droogfontein Solar Plant. Therefore it is pleasing to note that this project will generate electricity sufficient to supply 19 000 average South African homes. It is also pleasing to note that during construction, the plant created approximately 400 jobs and it is estimated that it will employ 20 permanent employees when it becomes fully operational.
The Plant has also a positive impact on the environment as it is expected to reduce about 82 tonnes of carbon dioxide per annum, which equates to 1 640 800 tonnes over its lifetime. This is in line with South Africa’s commitment to reduce its greenhouse gas emissions and make inroads towards the country’s transition to a sustainable energy system.
Ladies and gentlemen, I stand here to assure you that government is not resting on its laurels. And as such, the achievements in the bag amount to the requisite energy that should propel us to even greater heights.
Accordingly, the DST is actively supporting the establishment of a primary solar resource network, which entails the setting up of twelve measuring stations across the country, though the SA Weather Services. During the first phase, six new solar radiation stations were commissioned in different climatic zones and the second phase will involve refurbishing the six existing SAWS stations.
The data collected from these solar radiation measuring stations, data collected from privately owned stations and satellite data collected by the South African National Space Agency will be used in developing a South African solar energy atlas. The initiative will benefit the country by quantifying the solar energy potential in the country.
The data may be used to inform spatial distribution of solar energy farms including the IPPs. It will also enable the weather services to provide credible data to international bodies and organisations, such as the Baseline Surface Radiation Network, a project of the World Climate Research and Global Energy and Water Cycle Experiment.
One of the ongoing government driven solar energy initiatives is the Solar Park or Corridor in the Northern Cape. It is envisaged that the DoE will influence a government-wide decision in declaring this area a solar energy generating corridor with approximately 5 000 MW capacity.
That will be just bigger than the Medupi power station. The Department of Science and Technology (DST) is part of the steering committee overseeing this process. In support of the investigative work, the Department has through SAWS installed measuring stations in Prieska and Upington.
The photovoltaic technology value chain has been analysed and despite the fierce price competition in solar photovoltaic, there is belief that South Africa could still play a role in more strategic parts of the value chain. These include exploring the late generation photovoltaic technologies, strengthening the national characterisation capabilities, opening opportunities to use and the beneficiation of natural resources, including silicon.
Let me close by sharing my conviction that at this pace we are destined to be counted among the leading economies of the world as envisaged by both the National Growth Plan and the National Development Plan.
We can only make sense of our 20 Years of Freedom if we anchor it upon a solid economic development that will help make a decisive dent to poverty and inequality. If we do that, then we know we are on the correct path to developing a healthy nation and prosperous country.
I thank you!
