The Western Cape ’s Breede River Valley is rapidly becoming a hot spot for the implementation of solar energy applications, EP Solar CEO Manie de Waal says.

While recognised as a top tourist destination and fruit- and wine-producing valley, the region is now a top destination for renewable-energy producers as the demand for solar generation solutions explodes.

“The regular electricity cuts have forced many companies that rely heavily on electricity to seek cheaper and more reliable methods to generate electricity,” De Vaal explains.

The ongoing load-shedding has hurt both large and small businesses in the region, driving companies further away from grid dependence.

Large commercial operations such as Kaap Agri, BBK, GRW, the Du Toit group and Pioneer Foods have mapped the area, which includes Worcester, Ceres, Bonnievale, Montagu and Tulbagh, as a prime location for solar project implementation.

This is due, in part, to the relatively limited rain experienced in the region and the accommodating local municipality.

“Municipal tariffs for electricity are relatively high here, which is not ideal for businesses that are trying to grow. However, the municipality is very amenable to the notion of local operations adopting solar power,” he explains.

“This has removed a lot of hurdles for these businesses and made the business case for embedded power generation even more compelling.”

While solar power on its own is not an adequate solution to combat load-shedding, there is still significant interest from businesses to implement it.

“What we are seeing in response to the power interruptions is that many of our clients are now requesting that conventional generators also be included in their power purchase agreement (PPA) contracts,” De Waal notes.

“Even with the increased cost of running something like a diesel generator on site, combining it with solar energy still makes it a more financially viable solution than being completely tied to the municipal power grid.”

EP Solar, which is a division of solar energy, refrigeration and steam services provider Energy Partners and part of the PSG group of companies, is involved in a number of projects in the region, providing small-scale embedded solar generation for customers, including agricultural equipment manufacturers, fruit producers and bottling operations, on an outsourced basis.

“As the service provider, EP Solar owns and operates the installed infrastructure, while selling the generated electricity to our client as a utility at below municipal rates,” he says, noting the solution is effective as it provides operations with reliable energy supply and decreasing operational costs.

Solar energy is an extremely versatile solution for businesses in the region in view of the amount of sunlight hours that can be used effectively and the operations’ reliance on PPAs for energy generation.

Drastically reducing the energy costs of a business through outsourced renewable-energy contracts will significantly improve that business’s resilience against the negative impact of future load-shedding, he adds, noting that, while it is still prohibitively expensive for most businesses to go off-grid entirely, ensuring that overall energy consumption costs less will go a long way towards bolstering balance sheets.

“PPAs lead to even better solar yields, since they are partnering with a service provider that actively monitors and operates the system for optimal results.

“Outsourced contracts also guarantee energy spend reductions and have no upfront cost for the businesses, which appeals to many companies in the area,” he adds.

With its involvement in some of the largest commercial operations within the region, EP Solar has now become the second-largest provider of electricity in Worcester after the local municipality.

“This is an important fact to note because it means that we now have a big enough footprint in the region to offer sufficient support for any new solar contracts here in future,” notes De Waal, adding that Breede River Valley is rapidly becoming the poster child for solar power and an example of the full capabilities of state-of-the-art PPA providers.

“We believe that, within a few short years, every business in this area that owns its own site would be wise to implement solar generation.

“The growth potential for this solution is virtually limitless at the moment, and it is highly likely that PPAs are going to play a massive part in elevating the Breede River Valley’s status as an agricultural hub even further,” De Waal concludes.