Renewable Energy: A New Era for Industrial Properties
Category Pretoria: Newsletter News
With an increased demand for energy globally, there is a growing need for stronger policies and larger investments in sustainability projects. Renewable energy remains the key to sustainable development and should be recognised as central to energy and economic planning all over the world.
Industrial properties naturally use large amounts of energy, a growing concern for South Africans. The question is - how can they effectively implement sustainability measures on their buildings to ensure a carbon-free future, or have they already started?
The national renewable energy landscape
"Africa has nine times the solar potential of Europe, and an annual equivalent to one hundred million tons of oil." - SOLA Africa
It's no secret that South Africa's national power grid is under a huge amount of stress. In an effort to reduce our reliance on fossil fuels, there have been massive investments in RPP's around the country in recent years. It may surprise you to know that of the 5 largest renewable energy projects, all of them are wind farms. Scattered primarily along our coastlines, they contribute a collective 645,71 megawatts to the national grid.
While impressive, this is still a relative drop in our energy ocean: all of SA's renewable energy projects combined generate only 3 773 MW compared to the 43 485 MW currently delivered by fossil fuels. (Source: Business Insider)
Industrial properties naturally use large amounts of energy to fulfil their functions. Along with the strain this puts on the country's unstable electricity supply, it also means companies are faced with huge electricity costs. This result makes it increasingly necessary for industrial developments to implement alternative energy solutions, including lowering C02 emissions, reducing waste, increasing sustainability and best-case: creating and utilizing their own power supply.
So the question is, how can the real estate and property development industry be more energetically sustainable?
5 Industries Challenging the Energy Landscape
The good news is that industrial property managers are aware that sustainability is not only about saving natural resources, but it is also concerned with economic sustainability - which can contribute positively to their bottom line.
Here are some of the companies in Southern Africa doing their bit to relieve pressure on our energy grid:
1. Retail
Makro: ITWeb reported last year that Nesa Investment Holdings, a local renewable energy fund that invests in commercial and industrial-scale renewable energy systems, has acquired Makro's solar carport systems. The solar PV systems generate clean, affordable electricity that is fed directly into Makro stores, allowing the retailer to reduce its electricity bills.
The Makro sites include Woodmead, Riversands, Carnival, Strubens Valley and Springfield, with Silverlakes the next to be implemented. According to Nesa, the acquired portfolio has the capacity to generate approximately 4.4 million kWh and offset 4 700 tonnes of CO2 emissions per annum.
There are a number of other retail outlets, primarily shopping malls around South Africa that are capitalising on their area mass by installing solar panels on rooftops: Gateway Shopping Center in Umhlanga, recently installed 3500 solar panels on its roof. "The new solar system, which is 1.15 MW in size, will produce 1.5 million kWh of electricity per year, saving the centre over R1.5 million in electricity and demand costs. In addition, the solar PV system will save the centre at least 1350 tonnes of carbon emissions per year." - SOLA Africa. Other malls that have installed solar panels on their roofs are Tembalethu Square Shopping Mall in George, Mall of Africa in Johannesburg and Cedar Mill Mall in Clanwilliam.
2. FMCG
Coca-Cola Beverages Africa (CCBA) recently installed a 574 kWp solar facility at the Coca-Cola Namibia Bottling Company (CCNBC). "The project is expected to produce 1,016,760 kWh of energy in the first year of production, with appreciable Energy and Demand charge savings expected in the first year of production." In addition, this project results in 901 tons of CO2 reduction per year of operation.
3. Agribusiness
Fair Cape Dairies have taken measures to reduce their fossil fuel consumption by installing a solar PV farm on the roof of their milking parlour, enabling them to reduce the farm's total consumption by 16% for the next 25 years.
Simonsig vinyards have installed a 113kWh solar system on its farm in Stellenbosch, resulting in 180 000 kWh of clean energy per year and avoiding 160 tons of carbon emissions. (Source: SOLA Africa)
4. Manufacturing
Dynachem: The chemical manufacturer's Western Cape plant has constructed a 60kW industrial solar system, resulting in a whopping 36% in energy reduction every month. This not only eases the pressure on the grid, but saves them in monthly energy costs and annual price tariffs for the next 20 years.
5. Mining
Gravitricity: According to the UK-based company, "Abandoned mine shafts in South Africa could become giant batteries in the next few years, helping to stabilise the Eskom grid and stave off load shedding using nothing more than weights and winches."
The company has conceptualised a method that can be to store power from renewable sources - such as solar farms - for later use. The way this will be done by attaching heavy weights (anything from 500 to 5,000 tonnes) to winches planted at the mouth of a deep hole. When electricity is needed the idea will be to let the weights drop down the hole and use the motion to generate power. When you want to store electricity, haul the weights back up to the top again.
What is the future of renewable energy?
Engineering News reported that the share of renewables in global power should more than double by 2030. In the article emphasis is put on the need for renewable energy which could play an important part in closing the energy access gap and deliver energy to millions more people that need it.
Industrial properties that adopt sustainability into their operational ethos will assist in advancing the global energy transformation and ensure that there are development goals in place to create a pathway to climate safety.
According to the International Renewable Energy Agency, 60 percent of new electricity access can be met by renewables in the next decade with standalone and mini-grid systems providing the means for almost half of new access.
"It is not only an environmental issue but also a corporate social responsibility which predicts the future of the business and the next generation. If it is not taken care of now there will be nothing left for the future," says Stephanus Weyers at API Property Group.
If you would like to know more about green industrial properties that you can invest in, rent or maybe own, contact one of our knowledgeable brokers today or follow us online for up to date news and alerts.
Author: API Johannesburg
