German industrial group Rheinmetall plans to build its first South African plant to produce photovoltaic (PV) panels for the power-deprived local market.
The outages have spurred demand for solar power systems. South Africa imported solar PV panels worth nearly R2.2 billion in the first five months of this year alone, mostly from China.
Rheinmetall’s facility will have initial annual capacity to produce panels with total generating capacity of at least 500 megawatts, said Jens-Patrick Helmsen, CEO of the company’s South African unit Rheinmetall Denel Munitions (RDM).
The government has re-launched a drive to attract private investment in industrial-scale renewables projects to boost production capacity. It also loosened regulations on self-generation earlier this year, removing a cap on the amount of power businesses and individuals can produce before seeking government approval.
Helmsen said Rheinmetall would initially focus on producing PV panels for industrial clients in South Africa before a possible expansion to residential customers and exports to the southern African regional market.
Several businesses have already resorted to move off the Eskom grid, one being a hotel group in Cape Town.
Hotel group using solar power in Cape Town:
