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 Windlab, the global wind energy development company says the government’s announcement of the procedures and timelines to sign the final agreements between the Department of Energy, Eskom and private renewable power producers is a shot in the arm for economic development and energy security.
 
The agreement will involve around R47bn in infrastructure development, including the development of wind farms, which will provide Eskom with around 1415MW of installed renewable capacity.
 
In addition, Windlab supported the announcement of a new allocation of an additional 1470MW of wind capacity as part of the DoE’s renewable energy procurement programme.
 
Peter Venn, Managing Director of Windlab in SA, says: “We’ve had immediate positive response from international investors who’ve been waiting for this announcement. That’s a vote of confidence for South Africa and the continent.
 
“It’s clear though that there’s still some misunderstanding about the impact of the IPP (Independent Power Producer) Procurement Plan. Firstly, from a wind energy perspective, it’s not the funding of renewables that will drive increases in the cost of electricity.
 
“Medupi power station, when it eventually comes on line at the end of 2014, will start generating power at around 97 cents per kilowatt hour, according to Eskom. Wind, which is the cheapest form of renewable energy, will cost around 89c/kWh. Wind, as those of us enduring the Cape’s south-easter will know, is free.”
 
Venn notes that the cost of building wind-farms will be covered, not by taxpayers, but by investors. “This is a massive private investment that will benefit the engineering, construction and transport sectors and create thousands of blue- and white-collar jobs,” said Venn, who pointed out the government expects the renewables sector to create around 50 000 jobs by 2030. He anticipates this leading to the development of wind farms in other Southern African countries.
 
The government’s requirements for the sector include 45% local content, 40% local ownership and 2.1% of income for local economic development. Farmers on whose land the turbines are sited would also receive a royalty, enabling them to ride out droughts, for example.
 
Windlab has been successful with two wind projects in the first 15 wind projects selected as preferred bidders in the Government’s renewable energy procurement programme. Venn reiterated comments by the company’s CEO, Roger Price, last week, when he told the Cape Town Press Club that the CSIR regard’s South Africa’s wind resources are among the world’s top five, and that wind power could easily supply 25% of the country’s electricity needs.