South Africa: COEGA Supports Measures to Ensuring SA’s Energy Supply Security

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  • The Coega Development Corporation (CDC) has welcomed the measures announced by the Department of Mineral Resources and Energy (DMRE) to ensuring South Africa’s security in the energy supply.
  • The measures include catalysing developments to ensure electricity and energy supply within the short- and medium-term as well as the release of the Request for Information (RfI) for practical and least-possible-cost power generation options into the grid as rapidly as feasible.

In the context of the CDC, access to reliable and affordable energy is a critical enabler to drive industrialisation and economic growth.

To ensure a competitive investment location for its clients and future investors, the CDC has prioritised the provision of stable, continuous energy supply and associated utility services.

Furthermore, this advocates for the move towards a diversified energy mix to establish a well-integrated energy value chain, inclusive of electricity, liquid fuels as well as natural gas.

The CDC, with a proven track record in delivering mega-projects, plays a pivotal role in advancing readiness for the realisation of various energy projects in South Africa, comprising of production, generation, manufacturing as well as services.

Various energy programmes

The Coega Special Economic Zone (SEZ) includes world-class infrastructure, extensive roof area and serviced land that is available to host various energy programmes, with spin-offs for other sectors.

Distributed generation solutions are rapidly providing an alternative for industries within the SEZ. Complementing this is the existing 48kW solar plant, which feeds power to the CDC head office.

Leveraging the massive factory roof tops, the roll-out of the Coega Solar Rooftop Programme will draw also from the innovative mechanisms available within the Nelson Mandela Bay Metro in order to address the short-to-medium term energy gap.

Embedded generation is a viable and attractive proposition in the Coega environment. Over the last decade, the Coega location has bolstered momentum to ensure it is the readiest site for an integrated gas-driven power solution, and as such has secured key pre-requisites that support development in the shortest time.

“Coega continues to undertake extensive technical readiness work for up to 3,000MW of gas-driven power, which demonstrates our eagerness to advance readiness for SA’s first LNG importation with the assistance of relevant stakeholders,” said CDC energy sector manager, Sandisiwe Ncemane.

The Eastern Cape Government continues to support this programme, with a detailed plan for a provincial gas economy, comprising market analysis, logistics studies, third party (small-scale) gas localisation for SMMEs and Black Industrialists, and natural gas research and decision support.

Thus, the finalisation of section 34 determinations will then set in motion the development of these impactful energy programmes, and to positively impact South Africa’s energy landscape

Ncemane noted the Coega SEZ as the most ideal location to unlock South Africa’s diversified energy economy. “To advance this vision, the CDC continues to work hand in hand with the Eastern Cape Province, other state organs, and the private sector.”

Integrated to the Liquified Petroleum Gas (LPG) value chain, MM Engineering, a gas cylinder manufacturer, led by a female, black industrialist is located in Zone 3 of the SEZ, within 5km of the Port of Ngqura, where the liquid fuel tank farm is currently under construction.

LPG will propel the regional gas market demand, and trigger inclusive gas localisation.

“The CDC’s initiatives over the years for diverse energy investments are towards achieving the government objectives of stimulating the South African energy sector,” concluded Ncemane

Author: GBA News Desk/ESI-Africa Contributor

This article was originally published on ESI Africa and is republished with permission with minor editorial changes.


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