Home News “This signals the reawakening of the wind industry”

“This signals the reawakening of the wind industry”

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Association says that the signing and gazetting of Section 34 is one step closer to unlocking an estimated R40 billion annual investment from the wind energy industry.

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THE SOUTH African Wind Energy Association (Sawea) has welcomed Mineral Resources and Energy Minister Gwede Mantashe’s gazetted Section 34 Determination to procure more renewable energy for South Africa from Independent Power Producers (IPPs).

Sawea said in a statement on Monday that this was one step closer to unlocking an estimated R40 billion annual investment from the wind energy industry.

The announcement by Mantashe has been followed up by President Cyril Ramaphosa confirming that this procurement will allow for the development of 11,800 MW of new electricity capacity, indicating government’s commitment to unlocking growth and investment in the ailing economy, exacerbated by the Covid-19 pandemic.

“This signals the reawakening of the wind industry; the sector is ready to deliver on clean power and rolling investment,” Sawea CEO Ntomifuthi Ntuli said.

Wind power not only directly benefits the parts of the country that are rich in wind resources, such as the Western Cape, Eastern Cape and Northern Cape provinces, but also unlocks massive investment across a number of sectors.

“We have estimated that the roll-out could attract R40 billion annually, which means that the sector will create direct jobs for the coming years in various sectors of the economy, particularly in the construction, manufacturing, transportation, logistics and professional services sectors,” Ntuli added.

This latest determination opens the way for the procurement of 4,800 MW from wind, which Sawea explained is part of the 2019 Integrated Resource Plan (IRP), South Africa’s energy roadmap, and sets the stage for Bid Window 5 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

“Wind procurement sustains the economic objectives that drive the country, as it exposes the underlying economic value of existing infrastructure,” Ntuli stated.

The Department of Mineral Resources and Energy will be the procurer, with duties that include negotiating power purchase agreements, while the president has noted that several additional reforms will be implemented in the energy sector.

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