South Africa could see spin-offs in the business sector as a result of increased interest in alternative energy.
Chief Director of industrial policy at the Department of Trade and Industry (DTI) Nimrod Zalk said that the electricity emergency presents a sizeable new industrial development opportunity for South Africa, with solar water heating (SWH) a prime example of this.
“We expect the SWH industry to expand exponentially, deepening its value chains and industrial structure. Additional tiers to the value chains can also be created through facets such as a components industry and skills development organizations. The expansion of the local production of SWH components will also reduce pressure on South Africa’s balance of payments, as imports are substituted.”
The alternative energy sector in SA is growing at a rapid pace in lieu of recent energy shortages throughout the country. The SWH market is one area expected to have a dramatic increase as regulations are passed and rebates offered. Power utility Eskom has started offering rebates for installations through an Eskom-accredited and South African Bureau of Standards-approved supplier.