Supporting clean energy start-ups in South Africa: challenges and opportunities. June 2018

Transcription

1 Supporting clean energy start-ups in South Africa: challenges and opportunities June 2018

2 The story goes ü Introduction to TIHMC ü Introduction to Green Economy Unit ü How we work our offerings and processes ü How we work our policy championing ü Challenges and opportunities for clean-energy start-ups

3 Introduction to The Innovation Hub Physical location of The Innovation Hub We are here

4 Introduction to The Innovation Hub Aim: lead, facilitate and manage sustainable job creation and inclusive economic growth and development in the Gauteng City Region Aim: enable economic development that is focused on creating sustainable jobs Aim: fostering economic development and competitiveness through innovation Green economy Smart industries Bio-economy Township economy

5 Introduction to Green Economy Unit Location of the Green Economy Unit Aim: the Green Economy Directorate, within GDED is mandated to develop and drive the implementation of sustainable economic development policy in Gauteng, with the goal of contributing to economic competitiveness and job creation in the Gauteng City Region Aim: incubation of sustainability focused start ups in the GCR, and support and coordination of green economy developments within the GCR Strategic positioning of the unit, located between policy development and implementation, enhancing ability to deliver on both mandates

6 Introduction to Green Economy Unit TIHMC broad focus areas: Smart Industries Bio-economy Township economy Green Economy CICSA, as custodian of Green Economy, focuses on: Water and Sanitation Waste Energy Recognition of significant job creation potential of these focus areas (ASSAf, 2008)

7 PROGRESS DASHBOARD From April March 2018 Updated: 2018/03/05 Majority Ownership CIC Companies. Total: 53 Jobs. Total: companies exited out of the programme Funding raised. Total: R 000 Exports Mentorship. Total: R 000 Internal (SSP): R 9,162 External: R 45,508 Reuired: R Value: R 0 Total spent on mentoring: R629 Total mentoring hours: ~787 hours

8 PROGRESS DASHBOARD From April March 2018 Updated: 2018/03/05 Company Sectors Company Sub Sectors Virtual vs. Physical Incubation Company Locations

9 Our focus areas water sector Opportunities within the GCR: NuLeaf Improving metering and monitoring in catchment systems Uptake of leak detection and prevention technologies to minimise losses (e.g. NuLeaf) Distribution and billing system technologies in municipalities (e.g. Nelisat, Share Water) Technologies to address acid mine drainage (e.g. Roc Water) Water access technologies for lowest income bracket in rural and informal setting (e.g. Kusini) Needs within the sector: Cost effective solutions for maintenance and refurbishment of water treatment facilities Kusini Nelisat Investment of R8,3 billion in the research and development of innovative solutions

10 Our focus areas waste sector Sector breakdown: TIHMC hosts incubates across most sectors Gauteng could Capture: ~ jobs ~R525 million

11 Our focus areas - Energy Opportunities SA has strong Renewable Energy resources Diversification of energy sector both resources and market players NBI large untapped opportunities in industrial and commercial sector, ~90% Residential applications (potential to increase property values) Technology localisation manufacturing of components and rest of value chain Municipal uptake (own use/ ownership) of RE generation e.g. Merafong solar cluster Needs Access to market (for SMMEs) Understanding of legislative framework and opportunities therein Access to finance for project development Technology testing and verification Conducive municipal by-laws for technology adoption

12 How we work incubation offerings and processes ü Business and technical support ü Access to infrastructure ü Access to markets ü Access to finance

13 How we work incubation offerings and processes The Incubation process 1. Companies selection 2. Needs assessment 3. Allocation of mentors 4. Appropriate training 5. Networking 6. Basic financial assistance for specific growth point Aligned with water, waste and energy focus within GCR context Based on needs + access to industry networks Technology development stage, business team, IP arrangements, marketing etc.. Connect companies to: industry, government agencies + depts., international agencies, R&D institutions and other entrepreneurs SSP funding to leverage further institutional funding, leading to investor attraction

14 How we work championing sustainability policies Provincial strategy review/ development Provide technical support - Review priority sectors - Link policy to implementation (at provincial, municipal and private sector level) - Conduct in-depth stakeholder engagements - Provide technical support to municipalities - Increase our visibility in key programmes - Build network of technical experts Facilitate economic growth - Investment promotion into cleantech - Build relations with funders and donors - Co-fund pilot programmes - Build relations with private sector Coordination and reporting - Enhance sustainability reporting systems - Ensure economic spin offs are elevated - Take advantage of current platforms i.e. IGR to voice provincial concerns/ issues

15 Challenges and opportunities in incubation Challenges Entrepreneur, middle-aged, white Prototyping male, uses own and first savings tests to funded develop by numerous first competitions prototype + 3F à Final iterations social funded capital by further competitions + TIA (via CICSA) Understanding very little kinds elseof finance Consider: available, introducing suitable terms new and tech/ Which conditions. offering team Euity? will to market scale Debt? this business? Mezzanine? Issue Venture shares? capital? Which institutions Consider: support growing this business stage? (Int. vs developing vs domestic) technology Consider: is the policy environment supportive of sustainable growth into the market?

16 Challenges and opportunities in incubation South Africa s history of innovation Dynamic energy sector Eskom monopoly + everyone else Opportunities World class financial sector to tap into Myriad supporting programmes: NCPC, TIA grants, entrepreneurship competitions, international green funds There are MANY problems to solve!

17 Challenges and opportunities in policy Challenges Policy maturity National spending on R&D is below 1% of GDP Policy consistency + certainty Policy longevity Effective use of public procurement

18 Challenges and opportunities in policy Policy space shifting towards end-user autonomy: SSEG, wheeling, energy-services models Waste policy creating niche, increasingly viable solutionopportunities Government support programmes: dti, TIA, GCF, GEF, DSBD Variety of tax incentives in place: 12L, 12B, C-tax

19 Siyabonga Rea leboha Ro livhuwa Enkosi Green footprints Source:

20 Backing it up!...

21 The Green Economy Context in South Africa Gauteng s green economy transition guided by: Gauteng s Green Strategic Programme (GSP) - under revision by GEU i.e. Coordinating document for green economy across province Nine focus areas: air uality, water, spatial planning and land-use, energy, food security, climate change, transport, economic development, waste. Details economic opportunities (in various sectors and leads) Other policies: Gauteng City Region (GCR) Economic Development plan Gauteng Energy Security Strategy (GESS) Gauteng Climate Change Response Strategy

22 Implementing the vision Step 1: Intelligent recruitment CICSA Network GAP Green Bi-annual call for applications Partners: Public, private and research Guided by the GCR s economic and developmental priorities

23 Implementing the vision Step 2: Structure curriculum & expected outcome and showcase companies Intended inputs Business Canvas Expected outcome: Risk & Compliance for start-ups Industry related workshops Marketing & branding Finalised business plan Commercial prototype Legal compliance Investment readiness IP & Patent registration

24 STRATEGIC OBJECTIVE 1 Step 3: Showcasing of entrepreneurs outcome Periodic Newsletter to partners Annual top 10 feature/profile Co-hosting graduation Raise profile of start-ups Share success stories Social media presence Industry Exhibitions & conferences

25 Implementing the vision Step 4: Bespoke accelerator for top 10 Fundraising CICSA bespoke accelerator (1) Short term Via short term consultant Maintain National Footprint Operations of CICSA Retain staff members Capacity building SSP grants (2) Long term Viability of NPC CICSA Accelerator Facilitated access to finance Legal services Facilitated access to markets