SAPVIA’s inaugural year saw the association grow from a small group of company interests to a significant industry mouthpiece. Credit should be given to the steering committee, (Kevin Robinson, Ryan Hammond, Davin Chown, Vincenzo Bellini, Mike Levington, Gerrit Kruyswijk and Warren Morse) for giving up their time and providing valuable input into the formation of SAPVIA, its constitution and its various developmental steps undertaken this year.
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Some of our achievements
SAPVIA’s first goal was to respond to the zero allocation given to photovoltaics in the draft IRP published in October 2010. More than 15 meetings within three weeks were scheduled with key government officials from departments including Eskom, National Treasury, Departments of Trade and Industry, Economic Development, Energy and Environmental Affairs, Nersa and others to communicate two main messages from industry: firstly, PV is mature and bankable; secondly, its costs are declining.
A number of documents, including academic papers, were also written and submitted to the Public Participation Process administered by the Department of Energy and Nersa, and presentations were made at the Nersa Public Hearings held in Pretoria on feed in tariffs. Through this process SAPVIA contributed to the government’s decision making process in approving 8.4GW of photovoltaic energy up to 2025 in the promulgated IRP2010. The allocation for the first round of renewable procurement soon followed allowing for 1450MW of PV within the total allocation of 3750MW for all renewables.
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The announcement of the first preferred bidders
On Wednesday, the 7th of December 2011, the DoE announced the preferred bidders for the first round of renewable procurement. 53 Bids amounting to 2 128 MW were received, of which only 28 bids with a total MW of 1 416 were selected as preferred bidders. Of the 1 416 MW reserved for the preferred bidders, 631.53 MW of that was taken by solar PV, and according to our calculations, 233.56 MW of the 631.53 MW allocation to PV, was taken by SAPVIA members directly involved in the IPP process. We would like to take the opportunity to congratulate all SAPVIA members who, either directly or indirectly, were successful in the bidding process!
SAPVIA continues to interact with government through the ongoing procurement process to ensure that any obstacles preventing the roll-out of PV to these allocations are mitigated.
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Memorable occasions
SAPVIA has hosted a number of successful networking events in Johannesburg, Cape Town and Durban, including exhibiting at COP17 and interacting with Deputy President Kgalema Motlanthe, Ministers Ebrahim Patel, Naledi Pandor, Dipuo Peters and others. The Green Economy Accord, to which SAPVIA was a signatory, was launched at the conference. The Green Economy Accord is an agreement between government, business and labour, committing each to tangible targets in achieving low carbon based economic development growth through renewable energy.
SAPVIA also contributed to the establishment of the South African Renewable Energy Council, and will be represented there to ensure the interests of renewables are present in government’s decision making fora.
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Looking forward
SAPVIA will be involved in the development of an Occupational Training Qualification for operation and maintenance of photovoltaic systems, and has launched a sub-committee to address the regulatory and financing obstacles with small-scale rooftop solar.
Our membership base currently stands just short of 50 members and we are pleased to report a steady growth in the numbers on a regular basis. In summary, it has been an excellent year for our association but it is only the beginning. Personally, I have enjoyed leading this initiative and I look forward to interacting with our members more in the future, and ensuring SAPVIA’s sustainability going forward.
Yours Sincerely,
Dr. Chris Haw
SAPVIA Chairperson
In the Lens
Some memorable moments at the COP17 CCR Expo and Soitec’s launch of South Africa’s
first CPV solar plant….
Deputy President Kgalema Motlanthe visits the SAPVIA stand at the COP17 CCR Expo
Minister Economic Development, Ebrahim Patel with Minister of Science and Technology,
Naledi Pandor, chat to SAPVIA member Philip Calcott of Thupela Energy about the Afritrak
model
Minister of Energy Dipou Peters at the SAPVIA stand
President Jacob Zuma giving his speech at Soitec’s innauguration ceremony of South Africa’s first
CPV solar plant. The 500 kW solar plant powered the COP17 global gathering
President Jacob Zuma, assisted by André-Jacques Auberton-Hervé, president and CEO of Soitec,
cuts the ribbon at the inauguration ceremony of the Hazelmere CPV plant
Soitec’s 500 kW CPV solar plant in Hazelmere, KwaZulu Natal
Auditing and Tax Advice compliments of BDO
Tax deductions for business using renewable energy
Despite approval of the IRP (Integrated Resource Plan) 2010 and Eskom’s implementation of increased energy tariffs, South Africa’s energy supply is by no means secure and power cuts are on the cards with the onset of winter and increased energy usage. Due to such challenges more businesses are exploring investing in energy saving systems and Government is making it worthwhile by giving taxpayers Income Tax deductions for achieving energy savings.
Business:
David Warneke, Tax Director at BDO South Africa says: “There are income tax advantages for businesses that make use of energy saving systems for trade purposes, but not for private individuals. If a taxpayer uses a tangible energy savings device in its trade, in general the taxpayer may write off the cost of the system, including direct costs of installation, as a wear and tear allowance over a time period. Recently the South African Revenue Service (SARS) indicated that the write-off period attributable to ‘solar energy units’ is 5 years. Where the taxpayer uses the device in its trade to generate electricity from wind, sunlight, gravitational water forces (up to 30 megawatts) or biomass, a special accelerated allowance is claimable instead of the wear and tear allowance. In this case the write off is 50 percent of the cost of the system, including the direct costs of installation, in the first year in which the system is brought into use, 30 percent in the second year and 20 percent in the third year. ”
In addition to the write off of the cost of the system referred to above, an allowance for energy efficiency savings is set to be introduced in the Income Tax Act from a date to be determined by the Minister of Finance. Warneke says: “The reason for this provision is to encourage conversion by taxpayers of old technologies to new ones. This often involves a substantial amount of capital expenditure and the perceived long pay-back period tends to discourage business from making upfront investments relating to energy efficiency savings.”
Conferences
The Solar Future: South Africa | 25-26 January 2012 | Johannesburg
SAPVIA has formed a partnership with the Solar Future Conference and our Chairperson, Dr. Chris Haw will be speaking at the event. To view the full details of the conference visit the event website at: http://www.thesolarfuture.co.za/
Africa Energy Indaba:25-26 January 2012 | Johannesburg
SAPVIA’s Chairperson, Dr. Chris Haw, will be one of the panelists debating ‘Which renewable technologies are the real option for SA’ at the upcomming Africa Energy Indaba. For more information on the full conference programme and speakers visit the event website at:www.energyindaba.co.za
1. Why is this working group important?“The PV industry is growing and lacking skills”. To fill the gap and identify the skills that are needed in the PV industry, also drive the development of the training programmes and their quality assurances.)
2. Why should members join this working group? To make sure that the training guidelines we develop and the direction are and is in line with the needs of the industry.
3. What will the future of the working group look like? Develop road maps for solar PV training in different educational levels from schools, tvet colleges and universities. Also assure that the quality of the trainings which are offered and in place meet the standards and the demands of the industry.
4. What capacity (time, resources) is expected from members who want to join the working group? Make time to join and fully participate in the meetings.
1. Why is this working group important? Distributed Generation (which includes SSEG, EG, Wheeling Projects, BESS etc) in broad terms is the future solution for energy supply, not only in South Africa where load shedding exists, but also internationally. The reason is that on-site or localised generation (i.e. generation closer to load centres) from alternative and mostly RE resources are fast becoming cheaper than the traditional vertically integrated energy supply systems. Vertical systems also mostly rely on fossil-fuels which has to be transitioned away from in the interest of sustainability.
2. Why should members join this working group? Everyone has a duty to plough back into the industry within which he/she operates. This working group provides the opportunity to members from various backgrounds to become involved and contribute in fields wherein those individuals has expertise and could make a difference. It also creates the opportunity where participants in our industry get to know each other, thereby building your network to be able to share insights and gain insights. One proviso is however that this is a “working group”, not a sitting group, committee or a passenger group. If you don’t contribute and intend to just gain and not share then this group might not be for you.
3. What will the future of the working group look like? The working group would have diversified working streams whereby topical focus is obtained to a broad scope in industry interests to then provide feedback from such focused expertise to the larger working group for the benefit of the industry at large.
4. What capacity (time, resources) is expected from members who want to join the working group? A two-hour WG meeting every second month and a two-hour workstream engagement every alternate month. So two-hours per month in general unless there are occasions when members are called upon to engage externally in addition to just contributing to the current matters – such as industry forums, conferences, webinars, networking events etc.
1. Why is this working group important? To raise awareness among all stakeholders that buying locally manufactured products will ensure that the money spent by citizens stays in the country. It will also assist the country in realising its dream of growing the economy, safeguarding jobs, and creating more jobs for the unemployed.
2. Why should members join this working group? The benefit of this group work is that you can collaborate with experts who can learn from each other. Each group member will have something they can give the other team members. Local Manufacturing Members can get to understand the industry’s needs and requirements. End users will be able to understand what locally produced equipment is available in the market and share their requirements with the group.
3. What will the future of the working group look like? The expectation is that this working group will be able to engage with all industry stakeholders and offer solutions for all locally produced equipment and services at competitive rates.
4. What capacity (time, resources) is expected from members who want to join the working group? 1-2 Hours per month.
1. Why is this working group important? The Environmental Working Group is important as it keeps our members informed with current information regarding any new regulations applicable to the industry, regulatory changes or amendments, environmental best practices and compliance, trends and any other relevant topics.
2. Why should members join this working group? The working group is for participants that are passionate about making a difference and serving the sector for the best environmental results. The working group presents opportunities to learn and gain experience in areas outside of their own expertise and to share their knowledge with others. Participants and their specific expertise provide credibility to the work achieved in the working group.
3. What will the future of the working group look like? The working group will build on its knowledge base and expand into new areas that require focus for new matters at any specific time that the future will present in an ever-changing world.
4. What capacity (time, resources) is expected from members who want to join the working group? Members will need to be committed to serve at least 1.5 – 2.0 hours every quarter.
1. Why is this working group important? Grid Access is the single greatest challenge for the integration of renewable into the grid, not only in South Africa but Globally. This working group seeks to provide a platform for industry to support each other in all matters related to grid access, grid capacity, Eskom/industry discussions as well as keep up to date on the latest grid access rules be considered.
2. Why should members join this working group? Understanding the rules regarding grid access isn’t always easy, this working group is a great place to touch base with other industry colleagues to share knowledge, insight, tips and tricks as well as get access to the latest happening in the transmission grid access space. We also provide updates from the Energy Council and NECOM discussions with Eskom on the latest developing grid rules and proposals. We are also the creators and custodian of the National Annual Renewable Energy Grid Survey which is in the 3rd year of its existence. The national grid survey has become a key document to inform upcoming Eskom Transmission Planning studies such as the GCCA and TDP.
3. What will the future of the working group look like? We encourage broad participation by anyone in the industry with an interest in doing grid access applications. Future working groups will encourage grid managers from IPPs to assist with sharing knowledge from their own experience to benefit and give back in general.
4. What capacity (time, resources) is expected from members who want to join the working group? We will meet once every quarter. The working group will also call for volunteers for initiatives which may require additional donated time. The additional time will vary based on the initiative in question but is typically a few hours of service every month.
ABOUT THE MARKETPLACE
SAPVIA NOW offers you the opportunity to feature your business, business services or products on this website to expose your business and make it visible to a diverse audience.
We understand that businesses may have distinct objectives, such as driving traffic to their websites, promoting specific products or services or disseminating Newsletters. The Marketplace has been designed to cater to these varied necessities effectively.
Recognising that each business’ interest and needs are unique, the Marketplace offers various packages to meet your business needs.
SAPVIA members will enjoy discounted rates to this remarkable opportunity.
Click the NEXT button to see the different packages on offer.
PACKAGE OPTIONS
Package 1: SAPVIA Website High Rise x Size 120(w) & 600(h) x 1-month = R20 000
Package 2: SAPVIA Website The Tower x Size 300(w) & 600(h) x 1-month = R30 000
Package 3: SAPVIA and PV GreenCard Website High Rise x Size 120(w) & 600(h) x 1-month = R35 000
Package 4: SAPVIA and PV GreenCard Website The Tower x Size 300(w) & 600(h) x 1-month = R45 000
Monthly extensions at R10 000 per month
15% discount applicable to SAPVIA Members.
Should you wish to take up the offer please click the APPLY button to access the application form.
