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www.csptoday.com/southafrica
Overview
South Africa is the worlds most exciting market
for CSP.
400MW of CSP has been awarded under
the Renewable Energy Independent Power
Producer Programme (REIPPPP) so far, and this
is just the start in hitting a government target
of 1200MW.
The market is growing at an exponential rate,
with the first of these installed projects set
to come online shortly, and others nearing
completion. With a large generation deficit
which needs to be filled with on demand power
CSP is set to be a vital part of the South African
energy mix.
Despite the optimistic outlook for CSP in South
Africa uncertainty remains. A heavy reliance on
the government to support the industry means
that CSP is still vulnerable.
In order to understand the opportunities, and
the concerns in the market we carried out with
over 60 key stakeholders and having provided
the result with full analysis.
BUSI N ESS
INTELLIGENCE
contents
Which CSP technology will prevail in
South Africa?.......................................................................... 3
What are the greatest challenges to
constructing CSP in South Africa?............... 4
Where else is hot in Africa?................................. 5
Key players in South Africa.................................. 6
Who would help develop your
business?..................................................................................... 7
Cutting costs in CSP development ............ 8
Future markets for CSP ............................................ 9
How can storage become cheaper?...... 10
The future of CSP in South
Africa: O&M.......................................................................... 11
How can we get more CSP
in future?................................................................................ 12
Conclusion............................................................................. 13
www.csptoday.com/southafrica l 2
BUSI N ESS
INTELLIGENCE
Which CSP technology will see the largest deployment in South Africa?
Parabolic
Trough
Tower
Fresnel
Dish
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Answer choices
Parabolic trough
50.8%
Tower
39.3%
Fresnel
4.9%
Dish
4.9%
www.csptoday.com/southafrica l 3
BUSI N ESS
INTELLIGENCE
Which is the greatest challenge when constructing a CSP plant in South Africa?
Meeting
local content
requirements
Sourcing
the right
components
Working
effectively with
authorities
Assembling
the supply
chain over
long distances
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Answer choices
Meeting local content requirements
36.4%
5.5%
40%
18.2%
BUSI N ESS
INTELLIGENCE
Which sub-Saharan African market (outside of South Africa) has the most
credible prospects for growth in the next 5 years?
Namibia
Botswana
Kenya
Zimbabwe
Nigeria
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Answer choices
Namibia
44.4%
Botswana
22.2%
Kenya
17.5%
Zimbabwe
0.0%
Nigeria
15.9%
BUSI N ESS
INTELLIGENCE
EPC
Technology/
component
supplier
Financier
Sub-contractor
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Answer choices
Developer
22.2%
EPC
28.9%
Technology/component supplier
22.2%
Financier
8.9%
Subcontractor
17.8%
www.csptoday.com/southafrica l 6
BUSI N ESS
INTELLIGENCE
Which type of company is it most important to meet for you to expand your
business in Africa?
Financiers
Regulators
Developers
EPCs
Engineers
Technology
suppliers
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Answer choices
Financiers
21.7%
Regulators
21.7%
Developers
25.0%
EPCs
10.0%
Engineers
10.0%
Technology suppliers
11.7%
BUSI N ESS
INTELLIGENCE
Which of these has the greatest potential to cut costs in CSP development?
More competition
amongst EPC
contractors
Increase in the
operating temperature
of CSP plants
Sourcing
cheaper
components
Standardised
deals for
financing
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Answer choices
More competition amongst EPC contractors
36.4%
16.4%
25.5%
21.5%
Cheaper Storage
BUSI N ESS
INTELLIGENCE
Which sector is most likely to be a user of power produced from small scale CSP?
Mining
Heavy industry
Manufacturing
None
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Answer choices
Mining
44.6%
Heavy industry
7.1%
Manufacturing
37.5%
None
10.7%
www.csptoday.com/southafrica l 9
BUSI N ESS
INTELLIGENCE
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Answer choices
Better logostical support for specialist materials
5.0%
40.0%
23.3%
31.7%
www.csptoday.com/southafrica l 10
BUSI N ESS
INTELLIGENCE
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Answer choices
Water availability
14.0%
54.4%
7.0%
24.6%
www.csptoday.com/southafrica l 11
BUSI N ESS
INTELLIGENCE
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Answer choices
Lack of transmission infrastructure
24.2%
14.5%
Regulatory uncertainty
33.9%
7.4%
BUSI N ESS
INTELLIGENCE
Conclusion
With South Africa the worlds leading CSP market for project development this survey has come
at a crucial time for the industry. From new challenges emerging like storage management and
O&M to the issues of working with Eskom and the DOE.
From the survey results here are some of the overall conclusions which can be made:
South Africa has access to expertise It was reiterated during the survey results that
sourcing components was not one of the key challenges in either the development of O&M
of plants. Despite many specialist components having to come from Europe developers
have had easy access to them and strong domestic expertise means South Africa is a
developing centre of excellence
Government, municipalities and Eskom need to better support CSP The headline
is the great government program which has led to over 400MW of CSP projects being
developed. Under the surface however CSP developers often find uncooperative local
authorities and an Eskom grid which needs updating to accommodate more CSP projects.
Further to this the DOEs round by round project award style has hindered long term
investment
Storage really is the key This is not a great surprise, but it has been emphasised again
that every aspect of storage is key to CSP development in South Africa. It gives CSP an
advantage over competitor technologies, it allows CSP to offset its higher price points
and managing it is essential to getting the most out of your plant. As South Africa gains
experience with storage systems, efficiency gains can be made and this should become an
even stronger selling point for CSP.