3 reasons the KZN South Coast is the destination for renewable energy investment
The climate crisis and increasing demand for energy across the continent are supporting the shift toward renewable energy production. Solar power generation, in particular, continues to grow in demand, bringing significant investment opportunities in manufacturing and production.
The South Coast Tourism & Investment Enterprise (SCTIE) on the KwaZulu-Natal South Coast outlines why solar power investment is particularly attractive in this region.
“Embracing renewable energy production not only meets international climate goals, but supports the conservation efforts on the KZN South Coast and promotion of our incredible tourism assets. We intend to become energy secure, which will reduce the costs of businesses having to invest heavily in their energy sources to stop their business production downtime,” says Deborah Ludick Manager, acting CEO of SCTIE.
“Reports indicate that, in the second quarter of 2023, some $1.7 billion [around R32 billion] worth of solar power products were imported into the country, showing the spike in demand. The government’s tax incentive for businesses, allowing them to claim a 125% deduction on renewable energy projects until 28 February 2025, further supports the sector. We believe the KZN South Coast is primed for investment in this sector, and we’re doing what we can to facilitate this.”
She says a feasibility study had been undertaken as part of the Eastern Seaboard Development plans for the Ugu District Municipality, which considered different energy types – onshore and offshore wind, hydroelectric, biofuels and solar – which are available to investors, enabling them to decide which option would best suit their needs.
1. The KZN South Coast is ideally located to support a range of renewable energy options
The region has abundant natural resources that support renewable energy production. The region boasts a year-round subtropical climate with abundant sunny weather, making solar energy farms one of the viable investment options. The coastal location also supports wind energy projects as a result of on and offshore wind. The KZN South Coast also forms part of the Eastern Seaboard Development, a government initiative to unlock the economic potential of the region, giving national priority and focused support to this area.
2. The KZN South Coast has available and affordable land
There is ample real estate available on the KZN South Coast which is much more affordable than other coastal regions in South Africa. This provides the necessary space for the establishment of solar farms, manufacturing facilities and more related to solar energy production.
3. The KZN South Coast has the Ugu District One Stop Shop
Investment in the region is supported by the Ugu District One Stop Shop (email oss@sctie.co.za) that creates a welcoming environment for investors by assisting in fast-tracking projects and reducing government red tape. The Ugu District One Stop Shop assists in regulatory matters such as company registrations, visa and environmental impact assessment applications, as well as sourcing funding. Through the One Stop Shop, potential investors in renewable energy will enjoy the support needed to benefit from this lucrative sector.
Image credit: Markus Spiske/Unsplash
