Estate Living Magazine Invest SA - Issue 41 May 2019 | Page 36

D E V E L O P M E N T
&
I N V E S T M E N T
SUSTAIN-
ABILITY
IN SOUTH AFRICA
An important consideration when investing is the state of affairs in
the region you are considering investing in – and this goes beyond the
obvious financial and political considerations. Ask questions about
the sustainability of the region’s energy and water sources, its waste
management policies as well as its biodiversity conservation. With all
considered, South Africa still ticks most of the boxes for being a desirable
region to invest in.
Renewable energy
Traditionally South Africa’s energy was
derived from coal, with a smattering of
nuclear, hydroelectricity, solar and wind.
But with the escalation of the climate
change conversation internationally, and
the brutal evidence of climate change –
floods, droughts and extreme weather –
seen, both globally and on our doorstep,
it’s not surprising that virtually everyone is
looking at renewables as a viable option.
And when you have an abundance of
sunshine, coastlines that lend themselves
to wind generation, and huge dams with
hydroelectricity potential, the possibilities
are endless.
Solar energy is the transformation of the
sun’s radiation into electricity through
photovoltaic cells, or through concentrated
solar thermal. We get lots of solar radiation,
especially in the west, so a solar plant here
can produce up to 20% more electricity
than a similar plant (with about the same
capital investment) would in Europe. For
example, a solar park in the Northern Cape
is set to deliver 180,000 MWh of solar
energy per year. And it is estimated that
only 3,000 square kilometres of land used
for solar energy is required to meet South
Africa’s current electricity demands.
Wind power makes use of wind turbines
to mechanically generate energy by
converting the wind into kinetic energy,
so an obvious requirement is a relatively
consistent supply of wind. Fortunately, many
of South Africa’s coastal regions receive an
abundance of wind. There are currently
22 operational wind IPPs (Independent
Power Producers) with more than 900 wind
turbines located in three provinces, with
a capacity of 2,078 MW connected to the
national grid. Additionally, local community
ownership through community trusts
has seen local communities benefiting
financially through dividends from their
shareholdings as well as socially through
IPP initiatives focusing on education, health
and social welfare.
South Africa is a water-scarce country, but
with careful management and the capture
of its (sometimes abundant) seasonal