Africa\u2019s biggest renewable power company said it would take years for South Africa\u2019s electricity supply woes to ease after the government\u2019s bias toward coal led to the collapse of wind and solar energy equipment manufacturers.<\/p>\n
That legacy is being exacerbated by global supply chain issues that are slowing the construction of renewable plants, Chris Antonopoulos, chief executive officer of Amsterdam-based Lekela Power, said in an interview.<\/p>\n
South Africa is suffering its worst-ever power cuts as the ageing and poorly maintained coal-fired plants of state utility Eskom suffer frequent breakdowns. Under President Cyril Ramaphosa, the continent\u2019s most industrialized country is now pushing for more renewable energy, but it\u2019s still reliant on coal for more than 80% of its power.<\/p>\n
\u201cThere were two or three years when Eskom was arguing that coal was better and cheaper,\u201d Antonopoulos said. In this period, where \u201cnothing happened, a lot of the local industry collapsed,\u201d he said.<\/p>\n
During a five-year period when South Africa halted a program to acquire renewable energy for the grid, companies set up to make towers for wind turbines failed, and there is little local manufacturing capacity for solar panels.<\/p>\n
\u201cThat cannot be re-established from one day to another,\u201d Antonopoulos said, adding that it will take two to three years before the wind and solar plants ordered by the government start to improve the power situation. \u201cThe current government is doing a lot. I am so happy that they have changed.\u201d<\/p>\n
Government-run auctions for the provision of renewable energy have restarted and have been increased in size. Ramaphosa has also changed regulations around the construction of power plants for private use, paving the way for mining and manufacturing companies to either build or commission their own capacity.<\/p>\n
Lekela, which is in the process of being acquired by Africa Finance Corp. and Egypt\u2019s Infinity Group, operates wind power plants with a capacity of 624 megawatts in South Africa. It plans to bid in future renewable energy auctions in the country and also has facilities in Egypt, Senegal and Ghana.<\/p>\n