Competition is steaming up as more companies are eyeing Africa’s renewable energy potential, particularly its wind sector. And one company is looking to set up shop in Africa, more specifically South Africa.
Denmark-based LM Wind currently has manufacturing locations on three continents and in 13 locations, but those numbers could increase by one once South Africa passes its Integrated Resources Plan (IRP2010). Expected to be effective by March, the country’s Department of Energy has said the plan will decrease carbon emissions by 30%. In terms of wind power, South Africa hopes to shore up its wind energy generation to 4,500 MW by 2019.
LM Wind’s Vice President of Sales and Marketing Ian Telford told Alternative Energy Africa that the company would begin looking for locations to build a wind manufacturing center near South Africa’s coastal region. South Africa offers a wind market that is expected to surge in the upcoming years, but it also provides a strategic location in order to transport materials to other parts of the continent decreasing shipping and manufacturing costs.
The company has already begun its African ventures with its in-progress delivery of 37 sets (including three blades per set) of 1.5 MW wind blades to Libya. In addition, another shipment is expected to arrive in Ethiopia by the end of H1, and Egypt is also scheduled to receive blades from LM Wind later this year.
Telford said that the company’s technology can cut electricity costs by 10%, and establish a base for local content to surface. He said that for every blade mold, 100 jobs could be created and South Africa could use the employment boost. For more information on investments in South Africa, please read Special: South Africa’s Scandals and Broken Promises.
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