Johannesburg August 23, 2023 – A landmark trade deal between South Africa and eight leading Chinese energy companies, including the prestigious State Grid Corporation of China (SGCC), has resulted in a transformative donation that is set to bolster the nation’s power supply infrastructure. China’s donation of 500 units of advanced technical equipment worth R167 million is poised to provide uninterrupted and reliable power to critical public institutions, fortifying the foundation of essential services across the country.
According the a Business Day report,” the donation from the Chinese companies — including gas and diesel generators, solar PV units and off-grid storage supply — come with no conditions,” said electricity minister Kgosientsho Ramokgopa.
Ramokgopa added that 400 units of the technical equipment are already on their way to SA and will be located at public hospitals, clinics and police stations.
Enhancing Vital Public Services
The 500 units of technical equipment, ranging from cutting-edge backup generators to sophisticated grid management systems, will be deployed strategically across key public institutions, such as hospitals, police stations, emergency response centers, and fire departments. This infusion of technology aims to ensure the seamless operation of essential services even during power disruptions, safeguarding the well-being and safety of South Africa’s citizens.
“There is no cost; it’s a donation … I don’t have the dates when [the units] will arrive,” Ramokgopa said on Wednesday.
“We are going to get 552 of those units and 450 are already on the way. It means more than 500 public facilities are going to have access to [an] uninterrupted alternative power supply. Thank you to the Chinese for the generous contribution. The equipment ranges from 6kW up to 200kW, which can support a clinic and a medium-sized hospital, so this is relief for [the] South African people,” he said.
Ramokgopa made the remarks during the signing of a memorandum of co-operation (MOC) with the eight Chinese entities at the Brics summit. The signing ceremony was held on the sidelines of the summit, now under way in Johannesburg, reported Business Day.
The eight companies include: the SGCC, China-Africa Development Fund (CAD Fund), China International Energy Group (CIEG), China General Nuclear Power Group (CGN), China National Electric Engineering Company (CNEEC), Huawei Technologies, TBEA and the Global Energy Interconnection Development and Co-operation Organization (GEIDCO).
“Even before today, almost all of them have been helping us on the generation side and have already generated a number of reports on how best we can improve the issues of performance of the coal-fired powered stations, reduce the emissions levels, reduce the technical losses on the grid and, on the transmission side, what is required in relation to planning and accommodating new renewables on the grid,” Ramokgopa said.
The donation from China is in addition to the R500m grant presented to SA as development assistance to alleviate the energy crisis, which was announced by president Cyril Ramaphosa on Tuesday when he hosted his Chinese counterpart, Xi Jinping, on a state visit ahead of the Brics summit.
It comes as SA and China seek to strengthen ties and reduce a huge trade imbalance between them; both countries signed several agreements on infrastructure, energy, agriculture and education.
The collaboration between South Africa and China, facilitated through this trade deal, serves as a beacon of possibility for addressing shared challenges and pursuing common goals. The transformative potential of such initiatives reinforces the notion that global partnerships can pave the way for sustainable progress and prosperity.