Energy sector crisis – the way forward

February 11th, 2015, Published in Articles: Energize

 

The energy sector has been totally thrown into disarray following the near collapse of Eskom’s generating capacity resulting from a complex set of circumstances. Recent months have been marked by the roll out of massive country-wide load shedding, threatening industry and mining in South Africa and causing analysts to revise economic growth expectations downwards with potential losses being accounted for in the billions of rand.

As stakeholders and professionals in this sector we have the responsibility and a sense of duty to rally behind Government’s 5-point plan to deal with the ongoing energy crisis and to garner the country’s resources and expertise to constructively shore up the mammoth challenge that Deputy President Cyril Ramaphosa faces in the recovery process. It is now the time for all to play a positive role and pull the country through these very challenging times.

Roshqott Energy Projects.

Roshqott Energy Projects.

The government hopes to see the private sector come in to build new coal-fired power stations, co-generation biomass options and wind /solar renewable projects to help meet SA’s electricity needs in forthcoming decades.

Economic and energy challenges have presented new opportunities

The reality is that in South Africa much still has to be done in respect of further expansion and rehabilitation of the country’s power grid infrastructure.

An ailing sector has its pains and challenges but it also presents new and exciting opportunities and requires closer attention into harnessing the interest of young engineers and entrepreneurs back into the energy sector if we are to increase demands for higher and sustainable capacity levels and avoid a repeat of the current crisis.

Many engineers and entrepreneurs are wishing to enter the lucrative and fast growing energy market, however start-up capital, technical and commercial expertise present the biggest challenge for any start-up company. Entry barriers are so high and that makes it difficult if not impossible for smaller players to enter and grow their businesses.

The current political and business framework in respect of job creation, skills and EME’s business development, lend itself to the Roshqott’s Engineering Franchise concept (REF), which Roshqott will be rolling in Q2 of 2015. Roshqott’s Engineering franchises, which vary from substation, overhead line construction, maintenance and facility management options, will be targeting emerging black women, young professionals owned and/or start up enterprises.

Current market conditions

The company’s financial projections anticipate turnover in excess of R1-billion for the next three years.
Roshqott is focusing on consolidating its position in the market by operating on a concentric approach and has big plans for the future. In house, a collective experience base of about 250 person-years within the industry will be leveraged to seize new opportunities and grow capacities to meet the sector’s exciting opportunities.

We are pleased with order volumes booked to date despite difficult trading conditions resulting from recessionary times and remain confident that the company will be experiencing sustainable rapid growth from next year. The company was awarded six substations for Transnet. The various contracts for 25 kV AC and DC in the Ermelo area, were awarded to Roshqott for a value in the excess of R100-million. The project for the new 25 kV AC, 10 MVA upgrade is a first in the country according to Transnet.

In addition to the technical challenges and prestigious award of these new technology projects, Roshqott will be making a considerable contribution towards skills and enterprise development programme in conjunction with Transnet.

Roshqott’s flagship project, the R95-million refurbishment of Condale substation, is nearing completion and phase 1-3 has successfully been completed and handed over to Mogale City’s electrical department. In the new year a string of new, refurbishment and maintenance projects have been planned by municipalities across the country. The municipal market is of strategic importance for the country’s economic growth and Roshqott is well positioned to meet those challenges.

Further growth will be driven by green technologies where the company is hard at work forging new relationships with both local and international companies. Although in its infancy stage – in Southern Africa – renewable energy is the sector which has the capacity and scale to create new jobs that can make a difference in the job market.

Contact Rui Marques, Roshqott Energy Projects, Tel 082 553-3670, rui.marques@roshqott.co.za

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