GreenCape Sector Development Agency

Transcription

1 GreenCape Sector Development Agency An introduction EcoTech Quebec Webinar 15 th May 2018

2 Introduce The GreenCape Sector Development Agency Who is GreenCape? GreenCape is a cluster development agency that supports businesses operating within the green economy in the Western Cape Established in 2010 by the Western Cape Government & City of Cape Town to support the development of the renewable energy sector Special Purpose Vehicle (SPV) to support the development of the green economy as a whole A registered fully funded not-for-profit organisation 2

3 Introduce The GreenCape Sector Development Agency What is GreenCape s mandate and vision Mandate To support the accelerated development of the Western Cape green economy Resource efficient Increase local production Lower carbon Economic growth Investment Job creation Vision The Western Cape is the green economy hub for Sub-Saharan Africa the regional headquarters and manufacturing center for leading companies in this space 3

4 GreenCape since inception, by the numbers INVESTMENT R 19bn R 1bn Renewable energy projects in WC New renewable energy manufacturing JOBS > Jobs in renewables projects thus far > 700 New renewables manufacturing jobs MEMBERS > member companies 4

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6 Energy Overview Accelerating the transition to a Green economy Small scale SSEG (now allowed) Economically viable finance issues Utility scale REIPPPP running again (reverse auction bidding for wind and solar project) Uncertainty about what will happen next 6

7 PV price benchmarking System Size Capital cost of system (cost per kwp) PPA tarrif (price per kwh) USD per kwh < 100 kwp R 13,500 R 16,000 R 1.20 R c - 10c < 500 kwp R 11,500 R 14,000 R 1.05 R c - 9c > 500 kwp R 10,500 R 13, c R c - 9c Factors to be taken into consideration when making this decision: Solar energy generation: installation size Technology choice, exchange rate, location, roof type and roof direction. The risk profile of the client The client's current electricity tariff The escalation terms 12

8 Outlook There are good prospects for investment in the Western Cape and, more broadly, in the South African water sector. 8

9 Approx. 1:1000 year event Source:

10 Key opportunities in the urban water sector Water metering & monitoring Water efficiency Water reuse Alternative water supply Market Water metering and monitoring Water efficiency and reuse Alternative water supply Industrial Commercial Residential Smart water metering Water quality monitoring Industrial effluent treatment Upgrading treated effluent Water exchange networks (~2300 manufacturing sites in CT) Onsite reuse Water efficient devices WC new development market: R900m (2018) WC residential market R5.8 billion: Groundwater supply Rainwater harvesting Seawater desalination Municipal Non-revenue water SA metro market: R2 billion p.a. Potable water reuse CT market: ~R2 billion Groundwater Seawater desalination

11 City of Cape Town current augmentation programme For City s water management plans see: 11

12 City of Cape Town current augmentation programme 12 For City s water management plans see: Outlook-New-Water-Augmentation-Program-Rev24-17-April-2018.pdf

13 Waste Overview Accelerating the transition to a Green economy Small scale Recycling, buy-back centers Green Waste Municipal scale First large scale AD plant built (private sector) Organic ban (coming over the next several years) Industry waste management plans 13

14 Circular Economy & innovative Business Models World Bank Market Connect 14

15 The cross border matchmaking facility Small Growing Green Enough power for growth Businesses the Western Cape that is sustainable and low carbon Cross-border Matchmaking HOW? 1. Cross Border Matchmaking Facility: a) A facility or process to match a local firm with a foreign firm b) Facilitate a deal to adapt and validate c) Provide trade mission support TARGET: link local SGBs with the global assets that they require to succeed Link local SGBs with the global assets that they require to succeed Accelerated growth 15

16 Service offerings What is the facility's concept and pilot approach Coming soon Available Customer classifications Inbound aggregator Inbound entrepreneur Local green entrepreneur Business Diagnostic and Needs Analysis Detailed green SGB list curation Facilitated one-onone matchmaking 16

17 Market connect: Cross border match-making Accelerating the transition to a Green economy Running the pilot for over 1-year (winding down) Likely to be adopted at the National Govt level (Dept Trade and Industry) Several successful matches already in business. 17

18 Thank you

19 Dam levels of the biggest six dams in the Berg River System that the City draws from (26 Feb 2018) % 103.5% 72.4% 60.1% 34.7% 20%

20 Day Zero risk now /07/23 20

21 Day Zero risk now /07/23 21

22 Day Zero risk now 2019 low consumption 2018/07/23 22

23 Day Zero risk now 2019 low consumption 2018/07/23 23

24 Day Zero risk now 2019 low consumption 2018/07/23 24

25 Report Outline Aimed at investors highlights key opportunities in the SA urban water sector Sector Overview Policy and Regulations Opportunities and Barriers Industrial Commercial Residential Municipal markets Funding and Incentives Download: 25

26 General drivers Risks of insufficient water supply Tariffs historically too low to drive market, but increases have improved the business case Commercial and industrial water and sanitation tariffs (City of Cape Town) Water restrictions Social responsibility 26

27 General barriers Municipal market: Creditworthiness / available capital of the municipality Capacity constraints Procurement processes Private sector market: Capital costs opportunity for innovative financing Property leasing Regulations (e.g. Water Use License timeframes, brine disposal) 27