South Africa: Building Energy, big opportunities for renewables

(AGI) - Johannesburg, Oct 19 - There are big opportunities in South Africa for independent power producers (IPP) operating in the renewable energy sector, according to Fabrizio Zago, CEO of Italian renewable energy producer Building Energy. Zago was speaking at the South Africa-Italy Summit taking place in Johannesburg, South Africa, and organized by The European-Houe Ambrosetti. Building Energy, a multinational company operating as a globally integrated IPP, has been present in Africa since 2012 and has managed the development and realisation of more than 17 renewable energy projects in South Africa and in Zambia, Mali and Uganda. South Africa has a high level of renewable energy potential and is targeting the procurement of 13 225 megawatts of renewable energy from IPPs by 2025 to ensure the continued uninterrupted supply of electricity. To date, a total of 6 376 megawatts of renewable energy has been procured from 102 IPPs, according to South Africa's energy department. "Being an IPP in South Africa is not easy, but possible. There is the competition with other energy source suppliers and one has to offer cheaper prices in order to remain competitive," said Zago. He said the South African currency (the South African rand is currently worth 15.22 Euros) is also a problem as your returns will be higher than in other countries, especially if you have long-term agreements in place. Building Energy's main South African projects is an 81 megawatts solar park in Kathu, in the country's Northern Cape province. In April 2015, the company was awarded preferred bidder status in the round four of South Africa's Renewable Energy Independent Power Producers Procurement Program for the development of a 140 megawatts wind project in Roggeveld, in an area between the Northern and Western Cape Provinces, and a 4.7 megawatt small-hydro project in Kruisvallei, in the Free State Province. (AGI) .