Page 17 - IDC

10 CITY PRESS, 21 FEBRUARY, 2016

news A

PROJECT IN

PARTNERSHIP

WITH THE
IDC Why we

need to

go green

YOLANDI GROENEWALD
yolandi.groenewald@citypress.co.za
As South Africa heads towards a low-carbon, ecofriendly
economy, it will be vital to grow new green industrialists.
The country’s traditional employer, mining, is bleeding
jobs, with the Chamber of Mines of SA estimating the
sector lost 47 000 jobs between 2012 and 2015.
More job losses are on the horizon with Anglo
American’s shock announcement this week that it will be
selling its local iron ore and coal assets.
Establishing green industries and jobs is one way to
keep the country economically viable.
Research conducted by the Industrial Development
Corporation (IDC) three years ago estimated that a green
economy could create 98 000 direct jobs in the short
term, 255 000 in the medium term and 462 000 in the
formal economy in the long term.
A green economy in South Africa would mean the
creation of jobs in a variety of fields, including waste
management, biodiversity and natural resource
management, public transport, wind and solar energy,
A NEW ERA KaXu Solar One near Pofadder is the first solar thermal electricity plant in SA. It is also the biggest of its kind in the southern hemisphere. KaXu, which biofuels, green construction, electric cars and lithium-iron
means ‘open skies’ in the local Nama language, will add 100MW of electricity to the national grid PHOTO: LUCKY NXUMALO batteries.
But money is needed to finance green start-ups, train
More power to says that “supporting communities and entrepreneurs
new workers and upskill unemployed people.
IDC industrial infrastructure head Lizeka Matshekga
financially will contribute towards the development of a
local skills base and prepare South Africa for
opportunities on the rest of the continent”.
Creating a new class of black industrialists is a big
motivator for the IDC, and the renewables
programme is the perfect vehicle to
the people of SA participation in a sector [that is
encourage green entrepreneurs.
“Support for increased black
technically risky] has created
opportunities for the local
manufacture of green energy
components. This has resulted
in the creation of job
opportunities, particularly in
areas where economic activities
With local communities in the Northern and Eastern Cape being given a were subdued,” she said.
Private sector investment in
direct stake in renewable energy plants, the future looks bright renewable energy generation will
soon reach R193 billion, with
Lizeka Matshekga R19.1 billion of that earmarked
for socioeconomic
YOLANDI GROENEWALD The department requires development. South Africa has
yolandi.groenewald@citypress.co.za renewable energy project commissioned 92 renewable
developers to invest in projects in under three years
enewable energy is bringing power to the communities living within a with the potential to add
people, and South Africa’s green energy 50km radius and help 6 327 megawatts to the national
programme has already created a new them stimulate local power grid.
generation of owners who never imagined they economic development. One green entrepreneur is
would one day have shares in an electricity Local communities need Heather Sonn, the managing
Rplant. to own at least 2.5% of a director of Khana Energy, a
Those who live next to the new clean power stations are new plant, but their black-owned and controlled
part of one of the biggest success stories to come out of the equity stakes have shot up company that has invested in
country’s Renewable Energy Independent Power Producer to 10.5%. the Garob Wind Farm in
Procurement Programme. The IDC has supported Northern Cape and the Eastern
In the Northern Cape, those who had little hope of finding community participation in 22 Cape’s Kouga Wind Farm. She says
jobs now have shares in the future. In Pofadder, residents say out of the 25 projects it her company has invested in
the power plants emerging among their koppies have given Fadiel Farao has funded, amounting to Heather Sonn the sector because of its
them new hope for a better life. PHOTO: LUCKY NXUMALO R2.6 billion, or 18%, of its enormous growth potential.
“It is still unreal for so many people in Pofadder that they total investment in “We figured it would offer sound long-term growth
have shares in these beautiful structures,” said Fadiel Farao, renewable energy projects. prospects and allow us to build companies according
chairperson of the KaXu Community Trust, which owns 20% Matshekga said the IDC facilitated the participation of to the country’s needs for job creation, skills
of the KaXu Solar One plant that began operating last year. PROJECT HOPE KaXu Solar One is one of two solar communities in different ways. “For example, we have used development and creating capacity in areas that foster
The rest of the plant is owned by Spanish renewable giant plants in Pofadder that carry with them better competitive pricing at subsidised rates to drive development. gross domestic product growth.”
Abengoa Solar, which has a 51% stake, and the Industrial prospects for the surrounding community This is in line with government’s initiatives for promoting Sonn says it is likely that the industry can get four
Development Corporation (IDC), which owns 29%. black ownership and community development.” to five times bigger and that South Africa could have
“The project has stimulated the local economy and will go a largest community equity schemes in the programme, with The IDC also carries equity risk on behalf of communities. a penetration rate of 20% to 40% renewable energy
long way towards helping to generate much-needed economic the Kouga Wind Farm Community Development Trust holding “We do not take any security in the community by 2030.
opportunities for people in this area,” said Farao. a 26% stake. Its income will be used to fund health, welfare, shareholding we fund,” said Matshekga, adding they had also “With new developments in energy storage and the
He added that, through the trust, dividends would be education, local infrastructure and enterprise development funded the establishment of trusts and had trained trustees. conversion of electricity from gas, South Africa could
invested in long-term projects to benefit residents for projects. But in the sparsely populated Northern Cape, a 50km radius become a world-leading producer of carbon-neutral
generations to come. Also in the Eastern Cape, the Chaba Winds of Change does not net many people, so the IDC decided to expand it. synthetic fuels, thanks to the low cost of renewable
The residents of Pofadder are not alone. At the moment, Community Trust owns 26% of the Chaba Wind Farm near According to the department of energy’s report, those energy,” she says.
local communities countrywide have a 10.5% stake in South Komga that began operating in September. benefiting from the community trusts are set to reap huge However, large international players still dominate
Africa’s new renewables plants, which the IDC has helped to Its sister plant, the Grassland Wind Farm near Motherwell, rewards, but there are some problems. For instance, the the green space because “the cash investment
facilitate. Port Elizabeth, has the same agreement with its Grassridge IDC’s current renewable energy projects are funded through requirement is huge and required skills are still new to us
The IDC’s industrial infrastructure head, Lizeka Matshekga, Winds of Change Community Trust. The trust, which loans and, because of this, communities do not benefit as a country”.
said she witnessed first-hand how a solar project in the represents the interests of Motherwell residents in the project, immediately. Sonn says she is proudest about the possibility of
Northern Cape helped residents access clean drinking water for will also receive up to 26% of all dividends generated from the Therefore, says Matshekga, the IDC allows a portion of the dreaming of a better future through this new sector.
the first time and provide water for emerging black farmers. sale of wind energy. dividends to go to communities while the IDC loan is “Collectively, we can shape the future and have a positive
“Sustainable community development is a top priority for Respected academic Professor Barney Pityana is one of its outstanding. “We want to ensure our investment activities impact on our economy, communities and country.”
uplifting or improving the socioeconomic level of trustees and says the money will be used to fund community- contribute towards the achievement of a positive legacy – buy-
underprivileged communities. That’s what the IDC wants to boosting projects in the areas of education, sport, enterprise in and engagement – to ensure we have a vested community.”
achieve,” she said. development and skills development. The next step, says Matshekga, is to establish sustainable TALK TO US
South Africa’s newest concentrated solar plant is the Khi South African equity shareholding across renewable energy businesses around the green power plants. What other sectors could this sort of
Solar One tower north of Upington, Northern Cape. The IDC programmes now amounts to 47%, or R30 billion, of the total “We will not rest until a community-owned business supplies community trust model be applied to?
has allocated a 20% stake to the Khi Community Trust, which R65.8 billion investment, according to the department of components – for example, mirrors – to a solar plant,” she SMS us on 35697 using the keyword POWER and tell us
dispenses funds to the community. energy’s State of Renewable Energy in SA report. This is said. what you think. Include your name. SMSes cost R1.50
The Kouga Wind Farm in the Eastern Cape has one of the substantially higher than the 40% requirement. Reported by City Press and sponsored by the IDC
Community stakes in renewable energy projects

Concentrated solar power
Wind energy Photovoltaic power plants Northern Cape

Khi Solar One, Upington 20%
Northern Cape Eastern Cape Northern Cape
Longyuan Mulilo De Aar Wind 12.5% Dorper Wind Farm, Stormberg 12.8% Konkoonsies/Limarco 77, Pofadder 5% Aries/Sevenstones 159, Kenhardt 5% Ka Xu Solar One, Pofadder 20%

Longyuan Mulilo De Aar North 2 12.5% Kouga Wind Farm, Kouga 26% Mulilo, Prieska 20% Windfall, Sishen 10% Xina Solar One, Pofadder 20%

Karoshoek Solar One, Upington 15%
Mulilo, De Aar 20% Total Prieska, De Aar 5%
Chaba Wind Farm, Komga 26%
Western Cape
Grassridge Wind Farm, Port Elizabeth 26% Hydroelectric power
Klipheuwel Wind Farm, Caledon 5%
Western Cape North West Northern Cape
Gouda Wind Farm, Gouda 10% Waainek Wind Farm, Grahamstown 26% Slimsun, Swartland 20% Rustmo1 Solar Farm, Rustenburg 17% Kakamas Hydro Electric Power, Kakamas 15%
THEUNS KRUGER, Graphics24