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Global solar leasing platform, Sun Exchange, has announced that South African automotive platform Cars.co.za has bought into a project that provides off-grid solar power, plus battery storage, to the Karoo Fresh commercial farm.

By using the Sun Exchange platform to buy more than 16 000 solar cells, valued at more than R2.5-million, Cars.co.za says it hopes to leverage its balance sheet to drive sustainable energy, while also creating an alternative income stream for its business over the 20-year lifespan of the solar project.

The 332.1 kW solar project, plus 640 kWh storage, which is already generating electricity, is Sun Exchange’s first fully off-grid project.

The project provides power to Karoo Fresh’s irrigation system, enabling the farm to expand its production of brassica and saffron, while reducing its reliance on diesel power.

The project is expected to replace about 90 000 l of diesel a year, while also avoiding an estimated 240 t of carbon dioxide emissions a year.

This is equivalent to about 960 000 km driven in an average passenger vehicle.

Sun Exchange says it is in the planning stages of the next phase of the project, which will eliminate the farm’s reliance on diesel altogether.

“Our belief that business can be a powerful force for good is one of Cars.co.za’s core values and essential to our culture,” says Cars.co.za cofounder Alastair MacMurray.

“We are proud to be associated with Sun Exchange and the Karoo Fresh solar project as part of our vision to protect our environment and be a carbon negative business.”

“The Sun Exchange platform is all about enabling access to the benefits of the clean energy economy for all,” adds Sun Exchange CEO Abe Cambridge.

“Having Cars.co.za buy solar cells to power Karoo Fresh through the Sun Exchange platform, demonstrates the vital role the private sector can play in addressing some of today’s most pressing sustainability challenges.”

Sun Exchange has, since 2015, enabled solar power for more than 65 businesses, farms, schools and other organisations in Southern Africa.

Individuals and businesses from 180 countries across the world use the Sun Exchange platform to buy and own solar cells, produce clean electricity and “earn with purpose”.

Digital automotive marketplace AutoTrader and Smarter Mobility Africa have produced their third study that focuses on South African consumers’ perceptions of electric vehicles (EVs), as well as their preferences in considering EVs as a mode of transport.

Unpacking the 2022 AutoTrader Electric Vehicle Buyers Survey reveals that the initial cost of purchase remains one of the vehicle type’s biggest drawbacks.

“EVs in South Africa have the added disadvantage of incurring substantial taxes,” notes AutoTrader CEO George Mienie.

“Internal combustion engine (ICE) imports incur an 18% duty, versus 25% on EV imports, which pushes the cost of an EV to twice that of the average price of a new ICE vehicle (of a similar make/model),” he explains.

“It is interesting in the survey to note that the initial cost of purchase has become an even bigger disadvantage to consumers,” says Mienie.

The survey also highlights that the early adoption of EVs is decreasing in South Africa as consumers are becoming more educated about what the future holds for EVs as a mode of transport.

As battery technology continues to develop, it will not only reduce the initial cost of EVs, but also increase the range of these vehicles.

“The data shows that consumers are pushing out their purchase intent and almost taking a wait-and-see approach,” says Mienie.

According to the report, the number of people willing to pay more for an EV upfront, even given its lower running costs, fell from 68.2% in 2021, to 64.6% in 2022.

According to the report, an EV costs about 75% less to ‘refuel’, on average, compared with an ICE car.

Battery efficiency, safety and price have emerged as the most important considerations when purchasing an EV.

Reduced carbon emissions and air pollution, followed by cheaper running costs, were cited as big advantages of owning an EV.

EVs are still out of reach for more than two-thirds of consumers in South Africa, notes the report.

However, 64% of respondents indicate a willingness to spend up to R500 000 on an EV.

Range Anxiety

Vehicle manufacturers are currently producing EVs that travel further than 700 km on a single charge. In South Africa, EVs like the Jaguar I-Pace can travel up to 470 km on a single charge.

Range anxiety declined in 2022, according to the AutoTrader survey, and respondents appear to be more realistic about range (300 km to 500 km) than they have been in the past.

Still, insofar as purchasing intent is concerned, range expectations remain higher, with the majority of respondents (37%) stating they would consider buying an EV if it had a range of between 500 km and 700 km.

On a more positive note, charging infrastructure worries, cited as the main disadvantage in the previous AutoTrader report, have declined.

The number of people who have driven an EV locally has also increased, up from 12% in 2021, to 15% in 2022.

Disadvantages

Given South Africans’ love of driving, self-driving technology came in as the least influential factor in the purchase of an EV, states the AutoTrader report.

Charging time emerged as the second most noted disadvantage, increasing from 58% in 2021 to 59%.

However, 81% of respondents stated that they would consider purchasing an EV if it could be fully charged in under an hour at a fast charging station, while more than 70% of respondents with a higher disposable income want home charging of four hours or less.

Respondents cited the three most trusted EV brands as BMW, Tesla and Toyota. (Tesla does not have a presence or offering in South Africa.)

Supply & Demand

EV searches continue to surge, says the AutoTrader report.

In the first half of 2022, EV searches on AutoTrader using the fuel-type filter increased by 99.95% year-on-year, while hybrid searches soared by 129%.

EV views rose by 133%, with the Audi RS e-tron, Audi e-tron and Porsche Taycan the three most viewed EVs.

Views for hybrids, with their combination of combustion engine and electric motor, increased by 61.28%, with the BMW i8, locally ...

A total of 56 wind and solar projects have been submitted by prospective bidders under the sixth bid window (BW6) of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which has been expanded to 4 200 MW from an initial allocation of 2 600 MW.

The bids, which are split across five provinces, including 24 in the Western Cape province alone, have a combined capacity of more than 9 600 MW across 23 wind and 33 solar photovoltaic (PV) bids.

The wind projects have a combined capacity of more than 4 100 MW, with several projects bidding to supply 240 MW. The solar PV projects have combined capacity of 5 550 MW, with a number of individual projects also bidding to supply 240 MW.

Besides the Western Cape, the other provinces represented include the Free State with 11 bids, the North West with eight and the Northern and Eastern Cape with six apiece and Limpopo with one.

The IPP Office tells Engineering News that the bid evaluation, which will be conducted by an independent evaluation committee, will formally begin assessing the bids on October 5.

“At this time, we expect the evaluation process to take about six to eight weeks, whereafter the bid announcements will follow once all governance approvals have been secured,” the IPP Office said in response to an enquiry.

No price information was provided and it was, thus, unclear how current inflationary pressures were reflected and how the bids compared with those received during the troubled BW5, when the average tariff bid was 47.3c/kWh.

Anton Eberhard, who is Emeritus Professor and Senior Scholar at the Power Futures Lab at the University of Cape Town’s Graduate School of Business, noted that bids for the 1 000-MW solar PV allocation were more than five times oversubscribed, which should result in some competitive prices.

However, the doubling of the wind energy capacity on offer, from 1 600 MW to 3 200 MW, coupled with grid constraints, had resulted in a bid oversubscription of only 30%. "Less competition will likely see price increases compared to BW5," Eberhard warned.

BW5 was the first initiated under the current Integrated Resource Plan and followed a seven-year disruption, precipitated by a refusal by the previous leadership at Eskom to enter into new power purchase agreements on the basis that the utility had surplus capacity.

South Africa has subsequently descended into its worst-ever period of load-shedding, power cuts having been implemented at up to 6 000 MW, or Stage 6, during several days during 2022.

To date, only three wind projects out of the 25 wind and solar PV projects named as preferred bids in October last year have signed project agreements and none have reached financial close.

The IPP Office has set a deadline for the end of October for the remaining 22 bidder to sign their project agreements, but commentators have warned that some casualties should be expected.

The BW6 bids were submitted by the October 3 closing date, which was delayed from an initial deadline of August 11 after President Cyril Ramaphosa announced that the round would be expanded as part of several interventions unveiled on July 25 to tackle worsening load-shedding.

Ramaphosa announced that BW6 would be doubled to 5 200 MW, involving 3 200 MW of wind and 2 000 MW of PV.

However, the National Energy Crisis Committee, which was also established in July, later reduced the allocation to 4 200 MW, owing to the fact that the National Energy Regulator of South Africa had not yet provided concurrence with a Ministerial determination allowing for the doubling of the solar PV allocation, which was limited to the 1 000 MW catered for under a previous determination.

Meanwhile, the IPP Office confirmed a delay to the release of a request for proposals (RFP) for energy storage projects, which was expected to be published at the end of September.

It reported that the RFP was in the final stages and would be released to the market as soon as governance processes had ...

Total domestic new-vehicle sales in September, at 47 786 units, were 10.8% higher than in the same month last year, while year-to-date sales, at 391 396 units, were 13.4% up on the figure for the first nine months of 2021.

Passenger car sales showed an improvement of 9.7% in September, while light commercial vehicles were up 14.9%.

Medium and heavy-truck sales increased by 15.3% and 1.8%, respectively.

Total new-vehicle sales for September continued to run ahead of the corresponding month last year, says National Automobile Dealers’ Association (NADA) vice chairperson Alex Boavida.

“The numbers were aided by a strong showing from Toyota, which is making immense strides in recovering from flood damages that knocked out its plant in April.”

Boavida regards September’s numbers as encouraging, considering they were achieved in tough trading conditions, and on top of a fresh round of load-shedding and yet another interest rate hike.

“These [trading conditions] included an ongoing stock supply shortage and a stock mix that is not ideal.

“With factories struggling to keep new-vehicle production on schedule, delivery times are becoming increasingly difficult to predict, and in turn, dealers are finding it difficult to keep clients interested in specific models.”

Boavida adds that household costs continue to increase owing to the current extensive load-shedding experienced throughout the country.

Energy bills now include fuel for generators, with electricity costs set to rise significantly soon.

Boavida believes that some clients are putting off new-vehicle purchases to buy solar-panel and battery backup systems for their homes and businesses.

“Shipping and logistics remain problematic too, although they are improving monthly,” she notes.

“However, as cargo trade normalises, we are faced with shrinking markets and fears of a potential world recession.

“There are also some limitations on local vehicle transport with a shortage of carriers as exports ramp up.”

Boavida says that there is increased local interest in new-energy vehicles (NEVs) in South Africa – including the growing number of fully electric models that are coming to market.

“Clients are eager to learn more about these vehicles before making purchasing decisions, and while we anticipate a relatively slow transition from internal combustion engines, more and more electric offerings from a variety of brands are entering the market.

“The demand for used vehicles remains strong, and the availability of good used vehicle stock is improving,” adds Boavida.

More good news is a 104.6% improvement in the export of built-up vehicles in September, and a substantial increase (18.9% of new passenger-car sales) in the acquisition of rental and fleet units as the industry gears up for the holiday season.

The South African government is “moving painfully slowly” in finalising its policy on new-energy vehicles (NEVs), says Naamsa | The Automotive Business Council CEO Mikel Mabasa.

Since the unveiling of the green paper on NEVs in May last year, “we have not seen meaningful progress” in the finalisation of the next step, which is the drafting of a White Paper, he notes.

Mabasa says the deadlines determined by Europe and the UK to no longer allow the sale of new, traditional internal combustion engine vehicles are set for 2035 and 2030, respectively, which “is a real challenge” for South Africa.

“We are nervous about 2030 – Europe is our biggest customer.”

Exports account for 64% of vehicle production in South Africa, with 77% of this number going to Europe and the UK.

“We are becoming irritators of those moving slow,” declares Mabasa.

In contrast to South Africa, other countries such as China and India, and even countries within Africa, such as Morocco, are moving “at aircraft speed” to develop NEV policies, he adds.

“The world is not waiting for South Africa to wake up.”

Mabasa says the South African automotive industry is also in danger of losing significant ground to other African countries in terms of vehicle production.

South Africa was responsible for 62.3% of vehicle assembly in Africa in 2020, but that number has slipped to 53%.

“This will soon dip to below 50%,” says Mabasa. “Egypt and Morocco want to eat our lunch.”

He warns that South Africa is also bleeding engineering skills to assembly operations in Africa and the rest of the world.

Demand vs Supply

Mabasa notes that the Department of Trade, Industry and Competition has signalled its intent to offer a production-based incentive as a first phase of its NEV support programme.

However, while Naamsa welcomes that initiative, “we also want to make sure that demand is stimulated”, he says.

Mabasa says it is important for the local industry to “socialise” NEV technology, “to get as many people as possible to adopt it”, which is only possible if demand is stimulated in a “firm and compelling” manner.

“[The South African auto industry] can produce NEVs on one hand, but what if no one buys what we are producing?

“We cannot only rely on export-led business.”

NEVs made up 0.19% of the total new-vehicle market in South Africa in 2021, says Mabasa.

Economic and energy advisory company Meridian Economics is warning that the immediate implementation of Eskom’s proposed retail tariff plan could severely disincentivise investment into the large distributed generation plants required to reduce or end load-shedding.

The plan, which the utility says is necessary to rebalance variable and fixed charges in light of technology changes under way in the sector, has already met with stiff opposition from some residential customers and opposition political parties after the plan was submitted to the National Energy Regulator of South Africa for approval.

There has been particular anxiety over reports that Eskom customers with solar systems will be charged a ‘levy’ of more than R930 a month to remain grid connected; reports that Eskom has refuted, stating the restructuring will apply to all customers and forms part of a ‘revenue neutral’ effort to modernise the tariff structure to be more cost reflective.

The utility has acknowledged, however, that individual customers may pay more or less, depending on the changes approved and their consumption profiles.

In a new briefing paper, Meridian Economics says it supports the restructuring of Eskom's tariffs to become more cost-reflective.

However, it raises concerns about what impact the proposed changes will have on the nascent distributed generation market, and in particular on those large independent power producer (IPP) facilities that intend wheeling electricity to multiple smaller customers.

This market has been stimulated only recently by a reform that initially raised the licence-exemption threshold from 1 MW to 100 MW – a cap that is in the process of being eliminated entirely in line with interventions announced by President Cyril Ramaphosa on July 25 to tackle the worsening load-shedding crisis.

However, Meridian warns that a large portion of the wheeling market for IPP power could “grind to a halt for several years” if the tariff restructuring being sought by Eskom were to be implemented from April 1, 2023, as proposed.

The paper asserts that, while the rebalancing might be appropriate in a market that has sufficient supply, it is “fundamentally counterproductive” in a market that is short of energy, as it sends the incorrect pricing signals to generation investors and purchasers of power.

It also presupposes that Eskom is indeed able to provide generation “backup” to customers when it patently is not able to do so, Meridian adds.

The analysis shows that under the prevailing tariff structure, there is sufficient margin for a customer entering into a power purchase agreement (PPA) with a wheeling solar photovoltaic (PV) or wind IPP to achieve a meaningful saving of at least 10% on their electricity bill for both PV and wind wheeling projects.

Should the new tariff structure be implemented next year, however, there will be a 25% decrease in the value of PV energy that is wheeled, and a 15% decrease in the value of wheeled wind energy.

The calculations emerged from an analysis of how changes to time-of-use periods and the introduction of fixed standby or generation capacity charges, together with commensurate reductions to the energy charges, will affect 100 MW wheeling wind and PV IPPs.

“This reduced value proposition has the potential to delay investments towards the end of the decade, once the overall Eskom tariff has increased and the market PPA range has decreased sufficiently to offer a meaningful saving to the customer.”

To address this unintended consequence at a time when the country is seeking to accelerate rather than retard investment in distributed generation, Meridian says Eskom should commit not to implement the restructuring “overnight in 2023”.

To further reduce the regulatory uncertainty for investors created by these proposals, clarity should be provided on how and when these reforms will be implemented in a way that does not undermine the required market expansion.

“While further detailed work will be required...

Naamsa | The Automotive Business Council has received nine bids from companies interested in rolling out public charging infrastructure for electric vehicles (EVs) in South Africa.

The council issued the request for bids in June.

According to the document, the successful candidate will provide direct charging (DC) infrastructure along the N1, N2 and N3 highways.

This candidate will be supported financially by the Automotive Industry Transformation Fund (AITF), “ensuring a positive business case in response to the growth of EVs within the South African market”.

To align to the AITF’s requirements, the winning bidder must be at least 51% black-owned, with its primary business operations to be within the South African automotive value chain.

The tender includes the possibility of establishing microgrids at the charging sites, which will feed the charging points with green energy, thereby negating the use of Eskom’s coal-generated electricity and the energy supplier’s propensity for load-shedding.

Payment should allow for credit cards, with the planned 20 to 30 sites to be at 100 km to 300 km intervals.

EV vehicle manufacturers and charging service providers previously each rolled out their own network of charging stations, often built to varying specifications, while also employing different payment systems.

“We are now going to provide charging infrastructure together as an industry,” says Naamsa | The Automotive Business Council CEO Mikel Mabasa.

“We have put all our money into one basket, to make sure we increase the scale and impact of the infrastructure we roll out.”

Mabasa notes that the nine parties who responded to the tender are a mix a local and international companies.

He adds that Naamsa is also engaged with the National Regulator for Compulsory Specifications to approve specifications for charging infrastructure, to ensure that all charging stations in South Africa function to a similar level.

Mabasa emphasises that more than 70% of EV owners charge their vehicles at home, but that a countrywide charging grid is needed for when this is not possible, such as during long-distance travel.

The BMW Group plans to launch its first vehicles featuring completely vegan interiors next year. It will be available in both BMW and Mini models.

The German manufacturer says this advance is made possible primarily through the development of materials with leather-like properties.

“It will be possible to also use these materials for steering wheel surfaces, which must fulfil demanding criteria when it comes to feel, premium appearance and wear resistance,” notes the group.

BMW believes the demand for vegan and leather-free interiors is set to increase further in the near future, especially in the US, China and Europe.

The launch of such interiors will also aid the manufacturer in its ambition to reduce carbon dioxide (CO2) emissions over the lifecycle of a vehicle as it move towards climate neutrality, which is to be achieved by 2050 at the latest.

“Replacing raw materials of animal origin makes a significant contribution to increasing sustainability in vehicle production,” notes BMW.

“The introduction of a new surface material for steering wheels will see the proportion of vehicle components that contain traces of raw materials of animal origin fall to less than 1% in the respective BMW and Mini vehicles.

“As a result, these materials will now only be found in areas that are not visible to the customer, for example in various waxy substances such as gelatine used in protective coatings, lanolin in paints, tallow as an additive in elastomers and beeswax as a flux for paints.”

The new steering wheel surface material reduces carbon dioxide equivalent emissions along the value chain by about 85% compared with leather, says the company.

Up to now, most of the emissions linked to leather – about 80% – were in the form of methane gas from cattle rearing.

The remaining 20% was accounted for by processing of the cowhide, which is highly energy- and water-intensive.

Climate Neutrality

To achieve the group’s goal of climate neutrality, BMW says it is relying on the use of green electricity in production and in the supply chain, a consistently increased proportion of secondary materials and natural raw materials, efficient electric motors and combustion engines and a high recycling rate.

For example, the floor mats for various models are made from mono-material, thus avoiding material mixes that are difficult to recycle.

As a result, BMW saves around 23 000 t of CO2 and an additional 1 600 t of waste a year, since the recycled floor mats and waste material are also reused within the production process.

Research and development in the field of secondary raw materials and sustainable materials are also a priority.

BMW says it is working with start-up companies to develop bio-based materials.

Compared with the synthetic leathers previously used, these result in about 45% lower CO2 emissions.

Mirum, which is 100% bio-based and petroleum-free, has the potential to mimic all the properties of traditional leather.

Another new material, Deserttex, is made from pulverised cactus fibres with a bio-based polyurethane matrix.

“With these materials, replacing raw materials of animal origin can be combined with a significant reduction in CO2,” says BMW.

Public Enterprises Minister Pravin Gordhan has unveiled the names of the much-anticipated new Eskom board, which includes five engineers and a trade unionist, and which will to be led by Mpho Makwana, who was appointed executive chairperson at the utility in late 2009 following a previous leadership crisis.

The board, whose three-year appointment begins on October 1, comprises 13 nonexecutive directors, including Dr Rod Crompton who has been retained from the previous board, and two executive directors, CEO André de Ruyter and CFO Calib Cassim.

The five engineers included on the board are:

Dr Busisiwe Vilakazi, who holds a DPhil in Engineering Science from the University of Oxford and who is also head of research and innovation at government information technology agency SITA;

Lwazi Goqwana, who has 25 years of working experience in manufacturing, construction, financial services, logistics, energy and government, and who has worked at Unilever, Tiger Brands, Barclays Africa, Transnet, and the Department of Public Enterprises;

Clive Le Roux, who is an former Eskom chief nuclear officer and who also previously served as a power station manager at Matimba and Koeberg;

Mteto Nyati, who holds a BSc in Mechanical Engineering from the University of KwaZulu-Natal, and who is the former CEO of JSE-listed Altron; and

Dr Tsakani Mthombeni, who has a PhD in electrical engineering, is a past chairperson of the Energy Intensive Users Group and who is currently the sustainable development executive at Implats.

Former Congress of South African Trade Unions general-secretary Bheki Ntshalintshali is an interesting new inclusion.

His appointment coincides with recent industrial relations difficulties at the utility, which contributed to the implementation of Stage 6 load-shedding in June and July when some workers at the coal stations embarked on an illegal strike for higher wages.

The other members of the board are accountants Fathima Gany, Ayanda Mafuleka and Tryphosa Ramano, as well as lawyer Leslie Mkhabela and former Institute of Internal Auditors of South Africa CEO Dr Claudelle von Eck.

Makwana succeeds Professor Malegapuru Makgoba and takes up a role that he occupied previously as an executive chairperson; an appointment made after then CEO Jacob Maroga and then chairperson Bobby Godsell both stepped down following a public dispute over Maroga's proposed future strategy for the utility, which was rejected.

Gordhan said that the board had been appointed following a Cabinet meeting and a vetting process that had not involved any other structur, including the African National Congress deployment committee.

"I appeared before the Cabinet, we compile these names from various sources and professional bodies and what I'm announcing today is the result of carefully checking out all the candidates that we thought are able to make a contribution and that's what we have in front of us."

Engineering News Editor Terence Creamer talks about the South African government expressing its support for the shift from internal combustion engine vehicles to new energy vehicles; the approach the South African government is planning to take in this regard; the industry's response to this approach; the impact of load-shedding on the shift to electric vehicles; and when and where things are likely to settle.