ECDC funds solar energy plant in the East London IDZ

South African journalist-turned- businessman Zwelakhe Sisulu has his eyes set on staking a claim in the world's rush to green technology with an East London-based enterprise.

Sisulu and his company Matla Solar Energy have built a sun-heated water systems plant in the East London Industrial Development Zone.

Sisulu said yesterday: "On Wednesday, we signed a R20million financing deal with the Eastern Cape Development Corporation (ECDC) and our factory in East London ... has been completed. Our Taiwanese partners (Ming-Yang Funland) will be shipping equipment down soon. The plant will be up and running in six months."

Sisulu, son of Walter and Albertina, started Matla Solar Energy with Empowerdex director Chia-Chao Wu, after a chance meeting at a Taiwan trade fair in Sandton last year.

Solar energy demand has grown at about 30 percent a year over the past 15 years as the world moves to cleaner renewable power. The US market showed 57 percent growth in 2007.

The value of the SA solar energy market is not known but Sisulu says it will soon be worth billions of rands.

"Already, the Johannesburg and the Ekurhuleni municipalities have issued tenders for 300000 and 200000 solar water heater systems a year, respectively. And here we are only talking about two municipalities in one province."

Sisulu said he believed that the solar energy industry had great potential to solve South Africa's energy shortage in the long term.

The government has already decreed that all new houses must have solar water heaters, which will give the industry a major boost.

Going green won't come cheap, though, as a 100 litre and a 200 litre solar heated geyser will cost R5000 and R10000 respectively.

"Just like cellular phones, the system will be expensive at first but will get cheaper as demand grows and its use becomes more widespread."

Sisulu said when the East London plant - which will employ 300 people initially - reached full production capacity, there were already plans for the building of a second one in Gauteng.

"By full capacity, we mean when it runs two shifts."

Currently Matla owns 51 percent of the plant, Ming-Yang Funland 34percent and the ECDC 15 percent. "We are looking at the ECDC exiting the business in five years' time," said Sisulu. "We will then either look for another partner or we will buy back its stake."

Ming-Yang Funland will supply the technology and also bring management to SA for a year in a skills transfer arrangement.

Sisulu added that municipalities would be able to get carbon credits for reduced carbon dioxide emissions, which they could sell on the open market to boost revenue.