South Africa safari lodges lead solar shift to future-proof tourism
With 75% of global travellers looking to travel more sustainably and 83% confirming that sustainable travel is important to them (Bookings.com, 2024), the tourism sector, responsible for 9% of global carbon emissions, faces increasing pressure to reduce its environmental impact.
At the same time, many lodges, particularly in remote areas, grapple with unreliable grid supply, soaring electricity tariffs, and high fuel costs, often depending on diesel generators that are noisy, expensive to run, and environmentally taxing.
In response, Ngwenya Lodge, a luxury retreat on the Crocodile River overlooking the Kruger National Park, has become the latest example of how tailored solar solutions and smart financial models are helping safari lodges future-proof their operations. The project secures energy supply, cuts operating costs, lowers carbon emissions, and enhances sustainable guest experiences.
The case for solar at Ngwenya Lodge
To align with environmentally responsible tourism goals and address common challenges like frequent multi-day power outages, escalating electricity tariffs and costly diesel usage, Ngwenya Lodge recently transitioned to solar power.
The benefits of this switch include:
• Energy security and independence: Unlike grid electricity or diesel, solar offers uninterrupted operations and independence from external providers. With improved battery storage, lodges can maintain business continuity and guest satisfaction.
• Energy cost savings and long-term value: Solar power provides long-term financial stability by locking in lower energy costs and reducing dependence on unreliable grid electricity and unpredictable fuel prices. This frees up capital for investing in conservation and infrastructure.
• Silent, emission-free operations: Solar systems are silent and emission-free, preserving sensitive natural areas and maintaining a quieter, more serene environment.
• Enhanced sustainability credentials: Solar drastically cuts carbon emissions, aligns with conservation efforts and enhances sustainability credentials, helping lodges attract environmentally conscious travellers.
Ngwenya Lodge and Candi Solar partnership
Ngwenya Lodge partnered with Candi Solar, a Swiss solar power developer, financier and operator, to install a state-of-the-art hybrid solar and battery energy storage system (BESS), including a 994-kWp ground-mounted solar array and a 1367 kWh battery unit.
"By integrating a hybrid solar and battery energy storage system, we have eliminated Ngwenya Lodge's reliance on unstable grid power and drastically cut their diesel usage," explains Richard Flamand, Country Lead for Candi Solar South Africa. 'Since the system was commissioned on 27 January, Ngwenya Lodge has generated 64 MWh of solar energy."
Bruce Lywood, director at Innova Energy Solutions - a trusted channel partner of Candi Solar - adds: "By switching to solar, Ngwenya Lodge achieves long-term savings, sustainability and a seamless guest experience."
The impact has been immediate. Ngwenya Lodge has significantly reduced their reliance on Eskom and achieved immediate electricity cost savings. The lodge now enjoys uninterrupted operations - a critical factor in remote locations.
Crucially, the transition to solar has also reduced carbon emissions, and the silent nature of solar enhances a tranquil wilderness experience for guests. By adopting solar energy, Ngwenya Lodge has also strengthened its position as a leader in sustainable tourism.
"The numbers tell the story,' adds Flamand. "Ngwenya Lodge is seeing substantial energy savings. This isn't just an environmental win – it's a strategic business move that boosts resilience, lowers risk and sets a precedent for operators who value responsible tourism and are looking to decrease their environmental footprint."
Overcoming financial hurdles with smart structuring
A key financial challenge was the lodge's share block ownership model, which made it more difficult to secure external financing from traditional lenders. On top of that, the bank offered unfavourable contract terms.
Ngwenya Lodge and Candi Solar addressed these challenges through smart financial structuring. With Candi Solar's tailored Performance Linked Instalment Sale (PLIS) model, Ngwenya Lodge was able to unlock the benefits of South Africa's Section 12B renewable energy tax incentive, writing off a third of the system's cost in the first year, allowing the project to move forward without financial strain.
"Financing solar for share block structures has always been tricky," says Flamand. "Our PLIS model made it possible for Ngwenya Lodge to go solar without the usual roadblocks. It's a great example of how innovative and flexible financial models can open the door to sustainability.'
Blueprint for environmental responsible tourism
Ngwenya Lodge's solar journey exemplifies what is possible when forward-thinking tourism operators embrace renewable energy, not just as a necessity, but as a strategic advantage.
"This is just the beginning," concludes Flamand. "The future of environmentally responsible tourism is powered by the sun, and financially attractive, risk-free and fully managed solar power solutions enable safari lodges to make a seamless and financially viable transition to solar energy with confidence, leading the way in responsible tourism in Africa.'
All rights reserved. © 2022. Bizcommunity.com Provided by SyndiGate Media Inc. (Syndigate.info).
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