Renewable energy opportunities in the Eastern Cape – Part 2

Following on from last month’s introductory article, Chris Ettmayr, Senior Researcher: Business Development at the ELIDZ expands on his previous article on Renewable Energy.For the Eastern Cape the renewable energy sector means a completely new industry not only in generating electricity but also in manufacturing for the various technologies. With our province being heavily focused on the automotive sector, experts believe that diversification into the renewable energy market might actually be an easy step and a wise way of spreading risk in terms of supplying only one industry.

To illustrate the opportunities for local business to start manufacturing in this industry we can refer to the diagram to the right.

This may look a little confusing at first glance but when looking at each specific type of renewable energy one can see that there are really basic components that are needed for these projects.

Many local firms are already producing goods such as; pumps, tanks, valves and piping, meters, switch gear and turbines. There are also opportunities in products such as aluminum framing, glass mirrors and reflective dishes, electronic components and many more.

The Eastern Cape currently has more than 30 large scale renewable energy projects in the pipeline and this would create just over 5 000MW. Business should start considering diversification into this industry which is sustainable and is growing rapidly whilst the more traditional sectors are in decline. Should local businesses position themselves correctly as a supplier to renewable energy projects, consider the opportunity not only in the Eastern Cape but also in the other provinces of South Africa, and then up into Africa.

The ELIDZ is currently promoting the renewable energy sector aggressively as it believes in the long term sustainability of the industry. International trends are showing a strong concentration into this sector not only because of the good it does for the environment but also because it makes business sense.

The Eastern Cape, and East London business in particular, is currently well positioned to diversify its production into catering for the renewable energy market and with the amount of projects on the table, we have a great opportunity to become country and continent leaders in renewable technology manufacturing.