22/08/2024
The Urgency of Climate Action Investment Promotion in the Northern Cape - And NCEDA's Critical Role in Unlocking Investment (an opinion piece by Motheo Seleke)
As South Africa transitions towards a low-carbon economy, the Northern Cape finds itself at the epicenter of this transformation. The region’s abundant renewable energy resources, particularly solar and wind, make it a natural leader in the country's climate action efforts. However, despite these advantages, the Northern Cape Economic Development Agency (NCEDA) has yet to fully capitalize on this potential.
The agency’s sluggish pace in promoting climate action investment is not just disappointing; it threatens to derail both regional and national ambitions.
The 2024 South African Renewable Energy Grid Survey released by the National Transmission Company of South Africa (NTCSA) underscores the urgency of the situation. According to the survey, the country’s indicated renewable energy capacity has more than doubled from 66GW in 2023 to 133GW in 2024.
This surge demands immediate and decisive action, particularly in grid expansion and infrastructure development, to prevent bottlenecks that could stall critical projects. The Northern Cape, with its unmatched natural resources, is at the heart of this growth. Yet, the region’s potential will remain untapped unless NCEDA steps up to the challenge.
The slow pace of NCEDA’s investment promotion efforts is alarming. This is not merely an administrative shortcoming—it represents a significant impediment to the Northern Cape Provincial Government’s (NCPG) shared vision of a “Modern, Growing & Successful Province.” The province has the potential to be a national leader in renewable energy, driving economic growth and job creation. However, this vision is at risk of being undermined by NCEDA’s lackluster approach.
NCEDA’s role in this context is crucial. The agency is not just a facilitator of investment; it is the linchpin of the province’s development strategy. To truly fulfill its mandate, NCEDA must become a proactive advocate for climate action investment, particularly in the renewable energy sector. This means not only attracting new projects but also ensuring that the necessary infrastructure is in place to support them.
Grid expansion, in particular, is critical. Without a robust grid, the renewable energy projects planned for the Northern Cape will be unable to connect to the national network, leading to costly delays and missed opportunities.
The NTCSA survey also highlights the growing importance of Battery Energy Storage Systems (BESS) in the energy mix. As renewable energy generation increases, the need for reliable storage solutions becomes more pressing. NCEDA must work closely with Eskom and other stakeholders to develop strategies for integrating these storage solutions into the grid.
This is not just a technical necessity; it represents a significant economic opportunity for the Northern Cape. By positioning itself as a leader in energy storage, the province can attract further investment and create new industries that will drive long-term growth.
The consequences of NCEDA’s slow pace are far-reaching. The NCPG’s vision of a modern, thriving province hinges on the successful promotion of renewable energy projects. If NCEDA fails to act with the necessary urgency, the province risks losing out on billions of rands in investment, as well as the economic benefits that come with it. Moreover, the national implications are significant. South Africa’s ability to meet its climate goals and set a global standard in renewable energy depends on regions like the Northern Cape leading the way.
It is time for NCEDA to take its role seriously. The agency must adopt a more aggressive approach to climate action investment promotion, ensuring that the Northern Cape is at the forefront of South Africa’s energy transition. This includes not only facilitating investment but also advocating for the policy and regulatory adjustments needed to support these projects. The stakes are too high for anything less.
In conclusion, the Northern Cape has the potential to be a powerhouse of renewable energy, driving both regional and national development. However, this potential will only be realized if NCEDA rises to the occasion.
The agency must act now to secure the investment needed to transform the province and contribute to South Africa’s clean energy future. The time for half-measures is over; the future of the Northern Cape—and indeed the nation—depends on bold and decisive action.
Motheo Seleke
Entrepreneur | Just Energy Transition Lobbyist | Climate Action Investment Promoter | Founder & Organiser, EnergyX Africa Conference & Exhibition
