Johannesburg — CONCENTRATED photovoltaic firm Concentrix Solar has begun preparations to build a 50MW solar plant in the Western Cape, CEO Hansjorg Lerchenmuller said yesterday.

Mr Lerchenmuller announced this at the opening of the company's first power facility in SA, a 60kW concentrated photovoltaic plant at the Aquila private game reserve in Touws River in the Western Cape.

That plant, a demonstration project that supplies the game reserve during the day, is an indication of the readiness of renewable energy investors to tap into the SA's formative market.

Renewable energy companies are awaiting implementation of the renewable energy feed-in tariffs by the National Energy Regulator of SA (Nersa) before committing to bigger projects. The feed-in tariffs are a guaranteed price at which the renewable energy producers will sell their electricity. The tariffs are ranked among the factors that will trigger investment in renewable energy.

Mr Lerchenmuller said the 60kW Touws River plant marks the company's commitment to renewable energy in SA. "This plant was not developed to be here today and gone tomorrow. We are determined to be here for a long time."

He said Concentrix Solar plans to build a 50MW plant in the Western Cape. "Land has been secured and the (environmental impact assessments) are proceeding well," he said.

The plant will be built "as soon as off-take and contractual issues are resolved satisfactorily", he said.

Potential financial backers and black economic empowerment partners have expressed support for the project, which will be connected to the national electricity grid.

The Western Cape's MEC for finance, economic development and tourism, Alan Winde, praised the company.

" It is a bold move to do what you have done," he said.

"As we get out of the economic downturn, we will see an increase in electricity demand. Your timing is perfect."

The Western Cape provincial government had set a target to ensure that 15% of the electricity in the province is from renewable energy sources by 2014.

"We need to make it easier for companies such as yours to do business," Mr Winde said.

He said 17 wind companies are considering investment opportunities in the Western Cape.

The province is considered an ideal investment destination for renewable energy because of its distance from SA's coal-rich areas. Part of the electricity used in the Western Cape still has to be transmitted over thousands of kilometres from Eskom power stations in Mpumalanga, leading to substantial losses of electricity along the way.