GEFRAN AND ENERTRONICA PARTNERS IN PHOTOVOLTAICS IN SOUTH AFRICA

Provaglio d’Iseo (BS), 12 June 2012 - Gefran and Enertronica have signed a letter of intent regarding a partnership for the production and marketing of inverters, power stations, and anchor systems for photovoltaic plants in South Africa.

The two Italian companies have combined forces to seize an important opportunity in the photovoltaic sector: in the next several years, South Africa will be one of the world’s largest markets for renewable energy, with strong economic growth and 90% of energy currently supplied by fossil fuels.

The South African Department of Energy has launched a plan to stimulate – until 2030 – energy production from renewable sources to reduce the emission of gas into the atmosphere, announcing its intention to facilitate, over the next 20 years, the installation of plants to generate 25 GW of renewable energy, including 3,725 MW of clean energy. By 2014, installed power will be divided into 1,850 MW of wind power systems, 1,450 MW of photovoltaic power stations, and about 200 MW of solar thermal plants.

The incentive plan is based on the creation – through competitive bidding – of IPPs (Independent Power Producers) for 5 to 100 MW stations, and on a system similar to Feed-in Tariffs for 1 to 5 MW stations. The South African government has called for tenders to build the stations in 5 tranches, the next ones in the second half of 2012 and 2013. The requisite for participating in the tender is that 30% of the material used must be produced by South African companies.

Therefore, Gefran, world leader in the field of industrial automation, with years of experience and know-how in the production and marketing of photovoltaic inverters, and Enertronica, operating in the field of renewable energy in Italy, South Africa, and Romania as EPC (Engineering, Procurement, Constructor) and as a producer of anchor systems for photovoltaic plants, have decided to open a 5000 m² industrial unit in Cape Town for: the production of inverters with power range from 20 kW to 330 kW; the assembly of panels and modular containers up to 1.6 MWp; the design and construction of fastening structures and of single and double axle tracking units for photovoltaic systems, in addition to engineering calculations, maintenance organization, and technology service. 

The NewCo has a potential target of about 300 MW in 3 years, with a working investment of about €3 million.

Products will be produced locally for over 50-60% of the total value, and the Gefran-Enertronica NewCo will also be BEE compliant (Black Economic Empowerment, the law governing direct hiring of black workers or the use of contractors who hire black workers) under South African law, providing customers and partners maximum competitiveness in participation in tenders for technical supplies and for engineering in compliance with local regulations.

The company will be called Gefran-Enertronica S.A. Pty Ltd., with registered office in Cape Town.