Finance and Economic Opportunities
(1) What were the (a) commitments made, (b) outcomes achieved to date and (c) associated timelines related to the implementation of the Municipal Energy Resilience (MER) initiative;
(2) whether her Department is taking any further steps to push for a just energy transition and to combat the energy crisis?
[1]
[a] The commitment made was for 500MW of lower carbon energy to be produced in the Western Cape by 2025. This is through a programme comprising several components: municipal procurement, private sector enablement, enabling infrastructure, enabling systems, strategic development and management.
[b] The outcomes achieved are against the above commitment of 500MW:
- Small scale embedded generation [SSEG]:102 MW has been installed and registered in Western Cape municipalities since December 2020. These are the latest registered figures from municipalities. The City of Cape Town has estimated that only 50% of PV systems are registered [it has registered 87.5 MW since December 2020] and so the figures are likely substantially higher.
- Municipal own renewable energy generation since December 2020: 1 MW [Stellenbosch, Hessequa and George].
- Renewable Energy Independent Power Producer Procurement Programme [REIPPPP] projects in the Western Cape: Excelsior Wind Energy Facility and Perdekraal East Wind Farm that were operationalised in 2020, with a total of 139.7 MW.
- REIPPPP preferred bidder projects from bid window 5 (BW5) that are based in the Western Cape total 785 MW. These have yet to reach financial close.
- Three very large private sector renewable energy projects are underway [approx. 300MW in total]. The information is currently confidential. It is unclear at this stage what proportion of these projects will be implemented in the Western Cape.
- The municipal IPP procurement work underway is advancing into the implementation phase, with Stellenbosch Municipality being the first municipality to be provided with transaction advisory support for municipal procurement of up to 50MW (which is aiming to be operationalised by late 2025). The City of Cape Town is also well underway with their IPP procurement programme for 200 MW of energy (by end 2025).
[c] With reference to the commitment of 500MW:
- Municipal procurement: 200 MW in the City and up to 50 MW in Stellenbosch Municipality, with first power expected by the end of 2025.
- Private sector enablement: If the REIPPPP BW5 projects in the Western Cape reach financial close by the end of the October 2023 national IPP office deadline, they are estimated to reach commercial operation 18-24 months thereafter.
- It isn't possible to provide definitive timelines for delivery for SSEG and wheeling. The national Integrated Resource Plan currently only allows for 593MW of energy generation from distributed generation and it is unclear at this stage whether this limit will be raised.
[2] The Western Cape Climate Change Response Strategy [WCCCRS] and accompanying implementation plan is coordinated within the Department of Environmental Affairs and Development Planning. Further details on this programme should be requested from this department.
DEDAT, representing the Western Cape Government [WCG], partnered with the Manufacturing, Engineering and Related SETA [merSETA] and South African Renewable Energy Technology Centre [SARETEC], in collaboration with public TVET Colleges in the Western Cape, on the development of a new three-part occupational qualification, which also introduces a new dual vocational and innovative training modality pilot rollout of the Solar Photovoltaic [PV] Technician qualification.
MerSETA has been the main funder and strategic partner driving this strategic initiative to support skills development in the green economy by developing in partnership with SARETEC the first Solar Energy Training Centre at West Coast College. DEDAT’s contribution was via the learning material funding support and other key partners as part of a national drive to support the establishment of such centres to pilot the new Solar Photovoltaic (PV) technician qualification and address future skills offerings to support skills for the green mobility, renewable energy manufacturing, repair and service of equipment.
This skills development initiative identifies and addresses sufficient, appropriately qualified technical & vocational skilled people to meet the needs of prioritised economic growth areas in the Western Cape. The Solar PV Technician qualification is aligned to key skills required within the Solar PV industry that supports the broader energy resilience strategy for the green economy, which will positively contribute to economic growth and jobs in the Province and country.
The qualification was launched in August 2022 and is ready for its first pilot implementation to commence during 2022 and 2023 at the respective public TVET Colleges in the Province. Positive pledges have been received from companies to explore the workplace exposure for youth participating in this project, coupled with the project rollout. This willingness to form part of the pilot project to implement the new Solar PV qualification indicates the adoption of the new qualification roll -out by industry. It also suggests that the new qualification will address immediate critical skills to drive localization, competitiveness, and upscaling of the renewable energy industry.
