The Green Economy team recently undertook an investment survey/mapping exercise aimed at determining the trends, challenges and market opportunities of renewable energy firms in the Western Cape through the collection of relevant data with a specific focus on investment and employment.
The Western Cape is comparatively advantaged in the Renewable Energy space and has made significant progress in competitively developing this sector through substantial investment which has resulted in an increase in employment opportunities in the Province.
A survey of 57 private sector firms in the renewable energy sector was conducted between February and April 2013. The above graph depicts the median capital investment by category of business. Independent Power Producers (IPP) account for the highest median capital investment followed by Manufacturing and Engineering, Procurement and Construction (EPC) respectively.
For the 51 firms indicating their current employment levels (refer to Figure 2), total employment in the sector was 1 080. The average employment was 21,7 and median employment was 5. Firms operating in Operations and Maintenance (O&M) had the highest median level of employment (15,5), followed by EPC (10), IPP (9), manufacturing (8), other (4), and haulage (2).
Amongst the market challenges identified in this survey, red-tape and a lack of support from the Western Cape Government in elevating issue to National Government were identified. Skills shortages in the sector include Engineers (11), Artisans (5) and Management (5).
The investment survey/mapping exercise highlighted the scope of the Renewable Energy sector in the Western Cape. Preliminary results from this survey point to a growing sector which requires the continued support of government, at all levels, if it is to succeed. As part of developing the Green Economy in the province, once the Renewable Energy Sector Survey is complete, the study will be extended to five other sectors of the economy.