As the Industrial Development Corporation (IDC) aims to take a lead in
the development of green industry and energy efficiency, Rentia van Tonder
shared the philosophy of its approach at the Southern African Energy Efficiency
Conference (SAEEC2011) in Gauteng at the end of last year.
More insightful topics will be discussed at
SAEEC2012, scheduled for 14 and 15 November 2012 at Emperors Palace.The IDC
was established in the 1940s as a development finance institution (DFI) with
the mission of providing funding for entrepreneurs and projects that are
contributing to industrialisation and job creation.
It has
committed itself to make R100-billion available over the next five years for
investment in South Africa, a quarter of which will be funnelled to the manufacturing
sector and focus on improving green energy and energy efficiency.The IDC has aligned its
sectoral focus areas with the New Growth Plan (NGP) and the Industrial Policy
Action Plan 2011/12–2013/14 (IPAP2) as shown in Figure 1.
Facilitating resource and job security
The NGP
has set a target of creating 300 000 additional jobs by 2020 to green the
economy, with 80 000 jobs in the manufacturing sector and the rest in
construction, operations and the maintenance of environmentally friendly infrastructures.Additional
jobs will be created by expanding the existing public employment schemes to
protect the environment, as well as in the production of biofuels.
Projected targets for renewable energy open up major new opportunities for investment and employment in manufacturing new energy technologies as well as in construction.
The main strategies to achieve
these targets are the following:
• Comprehensive support for energy efficiency and renewable energy as required by
the government’s IPAP2, including appropriate pricing policies, combined with
programmes to encourage the local production of inputs – starting with solar
water heaters;
• Public employment and recycling schemes
geared to greening the economy;
• Stronger programmes, institutions and systems to diffuse new technologies to
small and medium enterprises as well
as households;
• Greater support for research and development as well as tertiary education
linked to growth potential and developing South Africa as the higher education
hub for the continent; and
• Continuing to reduce the cost of, and improve access to,broadband.
The green
economy focus of IPAP2 incorporates renewable solutions such as wind,
photovoltaic (PV) and concentrated solar power generation; alternatives such as
biomass generation through waste management; the efficient use of water and
energy resources in industry, and lowering emissions from energy-efficient
vehicles.
Key
action programmes will focus on:
• Rollout
of national solar water heating
• Solar
and wind energy
• Development of an industrial energy
efficiency programme
• Strengthening of water efficiency standards
• Demonstration of the viability of concentrated solar thermal power as a major
renewable energy-generation source
• Biomass
energy
• Clean
and multi-energy stoves
• Water-
and energy-efficient appliances
• Efficient motors, variable speed drives,
energy metering and control and electricity storage (batteries and fuel cells)
• Waste
and waste water treatment
•Establishment
of a South African Renewables Initiative
The IDC’s Green Industries Strategic Business Unit objective is to develop, grow and invest in green industries focusing on investments to enhance the environment, support carbon emission reduction, avoidance and adaptation.
A
value chain approach will apply, with the emphasis on industrial development
(including localisation) and job creation. This would be done through
investments in biofuels, cleaner production and energy, energy efficiency,
demand-side management interventions, emission and pollution mitigation and
waste reduction.
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Rentia van Tonder
Industrial Development Corporation
