Cape Town-based green technology companies have once again proven to be leaders in the field following their selection as some of the preferred bidders in the fifth round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
With a total of 25 projects selected at an average price of close to 47c per kilowatt hour, renewable energy has a bright future in South Africa. Loadshedding has reminded us of the urgent need for new electricity generation and the imperative that it be clean and green.
In particular, Alderman James Vos, Mayoral Committee Member for Economic Opportunities and Asset Management would like to congratulate Mainstream Renewables, Scatec, Red Rocket and Mulilo, who are all based in Cape Town. During my recent visit to Mainstream and Scatec, he was inspired by their operations and the local job opportunities they are creating in a rapidly expanding market.
Through the City of Cape Town’s work with GreenCape, our catalytic Special Business Partner, we have created an enabling environment for project developers and manufacturers in the green economy. The fruit of this is borne out in the evidence that Cape Town-based project developers were successful with over 75% of the Bid Window 5 projects. This is testament to the ecosystem of a well-run City.
This is especially encouraging because I recently appealed to the Minister of Trade, Industry and Competition, Mr Ebrahim Patel, to make sure that the National Local Content Policy is enforced in the REIPPPP.
As these projects move toward a financial close, we expect to see the associated local manufacturing opportunities. To this end, the City has worked toward a GreenTech special economic zone in Atlantis where there is already a Global Wind Turbine Tower manufacturer.
This and other companies, like the concrete tower manufacturer he recently met with, are well placed to provide locally manufactured components for these successful projects.
Congratulations to all of these renewable energy companies and I wish you luck as your projects move towards a financial close over the next six months, and ultimately development and connection to the grid in order to power up South Africa.