Energy solutions and technology company Siemens is assisting independent power producers (IPPs) in connecting to the grid. This includes localising portions of the assembly of its 8DA gas-insulated medium-voltage switchgear system that connects them to the grid.

State-owned power utility Eskom announced in 2023 that it would no longer build connecting substations for IPPs.

Siemens sub-Saharan Africa CEO Sabine Dall’Omo says this system together with the locally manufactured Transmission Protection and Control panels being supplied into the market allow the IPPs and independent power transmitters to connect to the grid and achieve grid conformity.

This aligns with the South African Renewable Energy Masterplan’s (SAREM’s) implementation goal to ensure that South Africa has the manufacturing base and capacity to actively support the realisation of its Just Energy Transition and overcome future hurdles, including supply chain and energy security concerns.

If SAREM’s objectives are to be realised timeously, tendering processes for renewables-related projects should be fast-tracked soon.

She emphasises the importance of the skills and technology transfer that eventuated from the domestic assembly of the 8DA switchgear system in partnership with high-voltage engineering and technology company Private National Grid (PNG).

“We have done a few substations already, for instance, Eskom’s massive Hydra substation, where several renewable assets will produce energy and connect to a battery energy storage system, at De Aar, in the Northern Cape, using Siemens PV Plant Controller and the Hybrid PPC.”

Dall’Omo also highlights Siemens’ work on numerous other projects, in the Northern and Eastern Cape provinces, as well as the Free State, where certain collector substations have already been “kitted out” with the 8DA technology and renewable-energy solutions.

With government aiming to ramp up SAREM implementation, the Siemens and PNG partnership is also ready to assist in establishing the planned and upcoming renewable-energy power plants, which will require grid connection through the anticipated involvement of independent transmission companies, she adds.

Implementation Solution

Dall’Omo says the local 8DA switchgear system model is important because, firstly, the time to market is reduced, owing to the local assembly which, in turn, also reduces costs for operators.

“We have a much higher level of local value-add, which also means that once the system is operational, the skills and equipment remain available here in South Africa. It is a long-term form of localisation; we will have the skills in-country, paired with the resources in-country.”

Secondly, there is ongoing focus on reducing South Africa’s carbon emissions, in part to align with European standards, to avoid heavy tariffs and taxation on exported goods. This reduction in emissions, however, can be realised only if the country promptly deploys renewable-energy solutions and decarbonises the energy sector.

“The quicker we are able to supply product to Eskom and IPPs, the quicker they are able to have the assets connected to the grid and see a return on investment, as well as realise broader economic value, including for sectors and industries that will need renewable energy for certification purposes,” she adds.

Once South Africa has reached its energy-mix ambitions, as it pertains to renewable-energy solutions, it will boost its standing and participation in the global renewable-energy supply chain, create jobs through skills development and local manufacturing, and promote socioeconomic growth.

Jobs will also be created for people who do not have tertiary qualifications, as various skills can be transferred to young people without formal education through internships, which is a way of helping to address unemployment in the country.

Despite concerns on the implementation of SAREM and the realisation of a seamless energy transition, localisation and in-country capacity for manufacturing will contribute to the refurbishment projects and the fulfilment of future pipeline projects.

“As companies active in South Africa, we all need to strive to ensure that we try to create as much local value as possible . . . because it will help us develop opportunities for all of us and stimulate GDP growth,” she enthuses.