SA's Wind Power Market Value Is $2.3 Billion

- Nov 08, 2019-

South Africa's onshore wind power market has attracted global attention, with currently approved power of approximately 2,000 megawatts. TomKrojgaard Pedersen, head of sales at Siemens, Middle East and Africa, said the industry's supply chain and wind industry could have 2,000 megawatts of electricity by 2017.


RiaanSmit's chief engineer for power transmission engineering at Eskom pointed out that there are currently a large number of projects and a large number of potential developers in South Africa. I think we need to integrate more powerful developers to create a more sustainable development path. At present, the interest in South Africa is so high that it is likely to serve potential projects for the next 20 years. However, reality means that not all potential developers can survive.


The lessons learned from the bidding window are one to three, which will also allow for rule changes, high local content and acceptance of sustainable plans. The end result will be a more sustainable industry.


Dr. Kilian Hagemann, Director of G7RenewableEnergies, said that the biggest challenge to date has been to deal with the objections of certain stakeholders in the project. “When I say this, I am talking about a very broad meaning because it usually comes down to personal opposition to the proposed project and then formalized in an environmentally approved appeal. This is definitely the biggest challenge of the past two years. It can Dealing with neighbors, they don't like to see turbines or the noise they expect to make, so they don't want them to be close to their land. There is a typical NIMBYism case (not in my backyard mentality), and many support South Africa's renewable energy. But don't want it to be close to their land."


He went on to say that in his view, the gold rush day in the South African wind power industry has ended. “It has become so competitive that people realize that if you don’t have a well-funded partner, they will be financing on very competitive terms or very good wind resources, then you are not much Opportunity to participate in the bidding. That is to say, ideally, you need two winning components to be successful. We are increasingly seeing this is a big boy game, the number of small developers has dropped dramatically, when I speak, we There are more and more peers. There are some small developers with very good projects, they will continue to stay in the market, but I think the future of South African wind depends on big companies.


"In terms of pricing, I believe that prices will not continue to fall in the fourth round. They are either stable at current levels or will rise slightly.


Unless something unforeseen happens in the international turbine market, we have reached what I think is the lowest price. The rest depends on the government's work - if they increase the distribution remains to be seen. Wind energy plays a very important role in South Africa's energy mix in the next 20 years, and it is still the mainstream technology, considering that it is now the cheapest form of new generation capacity, with an average R0.74/kWh in renewable energy independent power. Seen in the third round of the Producer Program (REIPPP). In the first few projects under construction, they created a very good record, indicating that this can be done on time and within budget, and there are some very positive socio-economic spin-offs. "