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 2 652 MW to be generated from Natural Gas.
Over the past decade, the CDC, and various State owned companies, including CEF/iGas and Eskom have conducted extensive preliminary work to advance the Readiness of the Coega Industrial Development Zone (IDZ) to locate a Gas- to-Power Project. Apart from the site location, CDC intends to unlock the gas to power industry at large. The project entails the generation of about 2 500 MW of electricity, which would satisfy the bulk of the Eastern Cape electricity requirements together with opportunities in the broader level such as localisation and conversion to gas. This would assist with the stability of electricity and industrialisation in the region which would create a large number of job opportunities, as well as support the manufacturing hubs of the province. Currently, there is a positive response from potential investors in this sector.
The CDC has over a period of years worked hard to locate the Liquid Natural Gas (LNG) facilities and Gas to Power Plant (CCGT) in the Coega IDZ & Port of Ngqura. Coega Development Corporation (CDC) has identified opportunities in the gas to power value chain. These include the onshore and offshore opportunities that will add value to the economic development of the Nelson Mandela Metro Bay and the province as a whole.
The power generated by the LNG & CCGT would satisfy the bulk of the EC electricity requirements, assisting with the stabilisation of electricity in the region and would create over 1 000 jobs.
There is also advanced industrial capability in Nelson Mandela Bay as well as in the Coega IDZ; both are also an important offtake market for the gas hub. Furthermore, Coega is home to the DEDISA substation, which is vital infrastructure for injecting large amounts of power into the grid.
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.
Coega has 3 wind farm projects investments planned with an overall capacity of 183 MW, a 12 MW Photovoltaic (PV) farm, with Biomass to electricity projects in the pipeline.
In response to the extensive roll-out of the DoE’s Renewable Energy IPP Procurement Programme (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 9 600 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.
The Coega Solar Rooftop Project
The Coega IDZ has a number of large facilities with facility cumulative capacity of a minimum of 127 000 m2 under roof.These buildings lend themselves well to the installation of solar panels on their roofs. This project entails the installation of solar panels on the industrial.
Nuclear at Coega
A prominent component of the IRP is the requirement for 9 600 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.
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