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South Africa is presently one of the world’s most exciting Energy markets. There have been significant changes in the South African energy sector with regards to the regulatory and policy framework.

A key component of the South African Integrated Energy Plan is the Integrated Resource Plan 2010 (IRP), the Department of Energy’s (DoE) 20 year master-plan, which outlines new energy generating capacity from a range of technologies like, renewables, natural gas and nuclear. There is a national drive that interlinks energy plans and other national plans-including the National Development Plan; New Growth Path; Industrial Policy Action Plan and the Ports, Marine and Land Transport Plans

The Coega IDZ has also built momentum on energy projects in both conventional energy and renewable energy so as to attract and sustain its investment projects.

Gas Projects at Coega

The amendment of the Gas Act 2001, aims to incorporate changes in the gas industry landscape in redefining “gas” to include unconventional gas (like shale gas) & other modes of transporting gas in the form of liquefied natural gas (LNG) and compressed natural gas (CNG). Furthermore, in 2012, the Ministerial Determination allocated 2,652MW to be generated from Natural Gas.  The importance of the CDC to meaningfully engage on these projects has been sharpened as the Department of Energy (DoE) is developing a national Gas Utilisation Master Plan (GUMP), to provide a long term roadmap to 2050 for strategic, policy and institutional decisions.

The  Coega  IDZ  is  the  location  for  the  R  3.5  billion Dedisa Peaking Power Plant Project at 335MW, based on Open Cycle Gas Turbines (OCGT) technology. This plant, expected to come on stream in 2015, will initially be diesel- driven, with capacity to be converted to a gas-fired power plant. CDC has done preliminary work on Coega readiness for a Combined Cycle Gas Turbine (CCGT) power plant project, coupled to an LNG terminal at the Port of Ngqura.

Renewable Energy

The Eastern Cape has significant resource potential in terms of renewable energy generation, with exceptional wind conditions by international standards, good solar conditions, as well as substantial potential for energy from the biomass and biofuels sectors. The Coega IDZ proves a strategic area to establish a renewable energy node to boost the Eastern Cape economy.

(REIPPPP), the CDC has seen the establishment of solar and wind turbine component manufacturing facilities within the Coega IDZ. The sector also includes manufacturing of Solar Water Heaters and distribution and assembly investments for the future to establish technology localisation.

Further to this, Coega make a significant contribution on the renewable energy logistics. Transportation and logistics for wind turbines and their component parts is an area of growing importance and opportunity for the wind energy industry.

Also a prominent component of the IRP is the requirement for 9600 MW of new nuclear capacity. Thyspunt, which is 80 km away from the Coega IDZ, has been earmarked as a likely location for the nuclear fleet in South Africa. CDC has identified advanced manufacturing opportunity, which would include component manufacturing for the nuclear, and support the drive for nuclear localization.

The CDC energy sector provides a social good in the form of a sustainable resource that does not impair future generations. The establishment of a high profile energy sector of this nature will enhance the CDC’s IDZ as a “world class” and innovative destination.

For investors who wish to take advantage of opportunities in the energy sector, please contact us on:

Telephone: +27 41 403 0400 / 086 102 6342
Fax: +27 41 403 0401


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