Sector development agency GreenCape has launched the latest Market Intelligence Reports (MIR) which highlight investment opportunities in key sectors of the green economy.
Developed each year in partnership with the Ministry of Economic Development and Tourism of the Government of the Western Cape, MIRs highlight investment opportunities in the province. MIR 2021 includes updated investment opportunities and highlights the relevant legislative context and potential market barriers and risks in energy services, large-scale renewables, electric vehicles and water. GreenCape has also published an MIR on sustainable agriculture in partnership with the Western Cape Department of Agriculture and an MIR on waste in partnership with the city of Cape Town.
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Investing in a green economic recovery
Minister David Maynier, Western Cape Minister of Finance and Economic Opportunities, said the province offers an abundance of opportunities in a variety of sectors, including the green economy.
âWe have worked hard to ensure the province is an attractive destination for investors looking to start or grow their businesses, highlighting the fact that not only are we a great place to visit, but we offer world-class infrastructure. , a highly qualified talent pool and an environment conducive to business prosperity.
âGreenCape Market Intelligence annual reports provide up-to-date information to help investors understand emerging opportunities to invest in the green economy, which will ensure that we save jobs, rebuild the economy and create an energy-secure future. in the Western Cape, âMaynier explained.
Market Intelligence Reports Provide National Snapshot of Energy Investments
Although the MIRs focus on highlighting opportunities in the Western Cape, they include relevant national overview and context.
Energy services are used to describe two key segments of the energy market in the South African energy space, small-scale integrated generation (which includes rooftop solar photovoltaic systems and energy storage) and l ‘energetic efficiency. These market segments are increasingly reinforced by offers in the energy financing sector, which in themselves constitute opportunities for financial investors.
The 2021 Energy Services MIR provides potential investors in the Small-Scale Integrated Generation (SSEG), energy storage and energy efficiency markets with a better understanding of market opportunities in South Africa, taking into account the size of the opportunities, the level of risk involved and the current barriers.
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An overview of the energy and electricity sector in Africa
Argon Poorun, Energy Analyst at GreenCape, said the 2021 Energy Services MIR unwraps SSEG opportunities for rooftop PV model diversification for commercial and industrial sectors, solar power purchase agreements, PV solar energy resellers and internal capacity building.
âBehind-the-meter battery storage offers an emerging investment opportunity in the energy storage market, and in the energy efficiency market, we are developing on smart metering and demand management opportunities, as well. than on aggregate interventions for new construction and commercial renovations. Poorun added.
Investments in the green economy are expected to increase as energy regulation expands
The recent presidential announcement to lift the license cap from 1 MW to 100 MW represents a significant positive change in regulatory sentiment in the private sector, according to Poorun. âI believe that over the next three years we will see an acceleration in the number of energy users and service providers participating in integrated generation markets such as photovoltaics.
âThere will also be an increase in adoption from large entities with more sites looking to access distributed power through wheels,â Poorun said.
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On-board generation threshold to increase to 100MW
With 24 municipalities in the Western Cape that allow small-scale integrated generation and 19 municipalities that have feed-in tariffs approved by regulators, the province is home to much of the more than 1.4 GW of photovoltaic solar panels installed on private rooftops. and public buildings in South Africa.
GreenCape is working on a number of initiatives in the Western Cape aimed at creating an ecosystem of partners that support the green economy in the Western Cape (such as creating a directory of green business support services). They are also part of the movement towards the creation of a green economy cluster agency in Mpumalanga to stimulate the growth of a green economy there as the transition to a just energy transition changes the makeup of the energy economy. local.
Opportunities for the large-scale renewable energy market exist in South Africa
the 2021 Renewable energy at utility scale The MIR, on the other hand, is intended for direct and local foreign investors who wish to invest directly in the South African green economy through project development, asset management, equity, debt, equipment manufacturing or support services. It highlights market opportunities in the large scale renewable energy market in South Africa.
Mandisa Mkhize GreenCape, Office of Energy and Utilities Analyst, says MIR Chapter 4 expands on estimated market size, drivers and barriers 🙂 based on Integrated Resource Plan allocations 2019, increased local manufacturing of renewable energy components and systems, development and deployment of distributed generation and battery energy storage at utility scale.
âA big movement in the sector is the announcement of the opening of the REIPPP 5 tender window. This procurement cycle presents an opportunity for the industry to revive some of the capabilities of the value chain of renewable energy and eroded investor confidence during periods of delay. This translates into an opportunity for 2,600 MW of new production capacity, including 1,600 MW of onshore wind power and 1,000 MW of solar photovoltaic plants, âshe added.
Over 60% of the project developers who have successfully completed the REIPPPP tours are based in Cape Town, and this ecosystem of skills makes the region particularly attractive for the professional skills associated with the renewable energy space.
* Panelists from a session on Day 3 of the Enlit Africa digital event reacted to the President’s announcement in the session titled The realities of integrating small-scale on-board production into your local distribution network. You can watch the discussion online.
**The full Energy Services Market Intelligence report and Utility-Scale Renewable Energy Market Intelligence report are available online.