South Africa, like many countries across the world, is battling to secure adequate energy to cater for growing populations and ever-increasing industrialisation, amidst loud lobbying and calls for the abandonment of coal.
Traditionally, coal has been the mainstay of the vast energy system in South Africa, meeting around 70 percent of the African economic giant’s power generation capacity.
Last month, Electricity Minister Kgosientsho Ramokgopa told the China-South Africa New Energy Investment and Cooperation Conference at Sandton revealed that Pretoria is looking to boost its renewable energy capacity with the help of a trusted BRICS partner, China, an increasingly close political and economic ally.
The conference was organised by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, the South Africa-China Economic and Trade Association, and InvestSA.
Days later, Ramokgopa flew to China, where he held high-level consultations with enterprises including Shanghai Electric, renewable energy company Goldwind, and Huawei.
On the sidelines of the trip to China, Ramokgopa has also held closed-door meetings with the Chinese Ambassador to South Africa, Chen Xiaodong.
Very pleased to join #SA Minister @pravingordhan &Minister @Kgosientsho_R at China-SA New Energy Investment &Co-op Conference. As both countries face a historical task of energy transition for sustainable devt, it is timely for us to co-op more in new energy investment. pic.twitter.com/GolBjW6ruu
— AmbCHENXiaodong (@ChinaAmbSA) June 13, 2023
With only weeks now before South Africa hosts the high-publicised 15th BRICS summit, set for August, the Union Buildings has remained tight-lipped on the deals clinched by Ramokgopa in China, probably preferring to use the bigger stage to divulge further partnerships amidst an unprecedented energy crisis gripping South Africa, coupled with massive blackouts.
Amidst the raging debate on the country’s dire energy situation, the government insists that while committed to the Paris Agreement on climate change and the goals of decarbonisation, a just transition means taking into account that Africa accounts for only 3% of global carbon emissions, South Africa is a developing state, and its transition into a cleaner economy needs to be people-centred.
During a recent tour of China by representatives of different South African media houses, top officials at state-owned China Energy Investment Corporation, commonly known as China Energy emphasised that while the drive towards clean energy is inevitable, the process should not be rushed or pressurised to please Western funders.
China Energy is the parent company of Longyuan Power Group Corp. Ltd which developed and runs the De Aar Wind Power Projects in Northern Cape, delivering renewable electricity while also helping the government meet its duties under the Paris Agreement to reduce emissions and save energy.
“Founded in 1993, Longyuan Power Group Corp Ltd is now the world’s largest wind operator. Longyuan was publicly listed on the Hong Kong Stock Exchange in 2009 and was listed on the main board of the Shenzhen Stock Exchange in 2022, known as China’s first start of new energy,” Guo Aijun vice president of the international Longyuan Power Group Corp Ltd addressed the South African media in Beijing.
“Our strong financial capabilities provide favourable financial guarantee for the development and investment of overseas renewable energy projects.
“At present, Longyuan Power has become a large-scale, comprehensive power generation group focusing on the development and operation of renewable energy with wind, photovoltaic, tidal, and thermopower projects, as well as a comprehensive technical support system in the industry,” he said.
In China alone, Guo said Longyuan Power has spread its tentacles across 32 provinces, autonomous regions, and cities in the economic powerhouse.
“As one of the earliest Chinese state-owned enterprises in the field of wind power, we have projects in operation in South Africa, Canada, and so on. By the end of 2022, the total installed capacity of Longyuan Power reached 31. 11 GW including nearly 26.19 GW of wind power and 3.04 GW of other renewable energy such as photovoltaics,” said Guo.
Among the highlights, Guo, the Chinese enterprise, assisted its South African subsidiary Longyuan SA to complete the first large-scale renewable energy project emission reduction transaction.
“Longyuan Power’s De Aar project in South Africa won the bid in 2013 and was put into operation at the end of 2017 with a total capacity of 244.5 MW. The project provides 760 million KW hours of clean electricity per year, equivalent to saving 215 800 tonnes of standard coal and meeting the electricity needs of 300 000 local households,” said Guo.
“In 2014, the project won the Excellent Development Award by the South Africa Wind Project Association. In 2023, the project was selected as a typical case of green energy for the 10th anniversary of the Belt and Road Initiative.
“While carrying out business activities in South Africa, Longyuan Power actively integrates into the local community to fulfil our social responsibility. We have provided more than 1 000 local employment opportunities, and so far, 112 poor college students with outstanding grades have been subsidised under the scholarship programme,” he said.
A special community fund has also been set up, and the company has also donated medical buses to provide free healthcare services to more than 9 000 community members each year.
IOL