According to SCTIE, solar, wind and hydro-power are all viable options on the sunny South Coast, further supported by the government's latest tax incentives and the favourable price of green energy material.

As part of its mandate to uncover investment potential in the Clean Economy, South Coast Tourism & Investment Enterprise SCTIE attended the 2023 Africa Energy Indaba conference and exhibition in Cape Town in March.

The event provides invaluable business growth opportunities for the continent's energy sector and was attended by:
  • the South African Department of Mineral Resources and Energy (DMRE)
  • the African Union Development Agency, and
  • leading African energy industry associations. 

"The message is clear: Renewable energy is not simply a viable alternative; it is fast becoming the alternative, which means significant investment is set to be unlocked," says Phelisa Mangcu, CEO of SCTIE.

"On the KwaZulu-Natal South Coast, with our abundance of sunny days and coastal location, the region is primed for sector growth; it's just a matter of taking advantage of the opportunities available," Mangcu says. 

According to Trade & Investment KwaZulu-Natal (TIKZN), renewable energy is currently the only electricity generation technology with decreasing prices.

The investment promotion agency says "[W]ith solar PV module prices falling by 80% during the past five years, while wind turbines have become 30% less expensive. South Africa's wind resources are regarded as among the top five in the world and could sustain 25% of our grid's capacity."

The agency outlines that in KwaZulu-Natal (inclusive of the KwaZulu-Natal South Coast) the renewable energy sector opens up several investment opportunities. Among these are the installation and supply of solar water heaters and heat pumps to the:
  • many real estate developments
  • industrial and retail developments, and 
  • wind and hydro energy solutions for business operations.

The established agricultural sector also has the potential for biomass production to support bioenergy production — biogas and biofuels — through agricultural residue.

Chris de Klerk, CEO of Renu Holdings (Pty) Ltd, a subsidiary of the Halfway Group of companies based on the KwaZulu-Natal South Coast, says renewable energy projects have seen major growth in the industry as the demand for reliable, clean power grows.

"The soaring fossil fuel prices are having long-term effects on business profitability and on the cost of living in private residences," says De Klerk. "Historically, the decision for renewable projects was primarily based on reducing operational expenditure, but with the ever-declining supply of constant power, projects are now largely based on ensuring energy security and independence."

He explained that Halfway Group's footprint on the KwaZulu-Natal South Coast has enabled the rollout of numerous projects for non-group companies and residential clients.

"The coast has, in the past, been an area of limited development and no real appetite for investment. This has changed with the boom in real estate due to its proximity to Durban, offering a relaxed environment and beautiful scenery. With this change in economic growth, so has the requirement for self-sustainability," adds De Klerk. 

According to SCTIE, investors in renewable energy are further benefitting from the National Treasury announcements regarding two renewable energy tax incentives. Under the enhanced renewable energy tax incentive, business owners can claim a 125% tax deduction (in the first year) for qualifying capital expenditure in respect of all renewable energy projects, with no threshold on generation capacity.

The rooftop solar tax incentive also gives tax rebates to the value of 25% of the cost of any new and unused solar PV panels, up to a maximum of R15 000.

For more information, visit www.investkznsouthcoast.co.za. You can also follow SCTIE on Facebook, X or on Instagram.