CASELET: THE SOLAFLEX PROJECT

Solaflex is based in Gauteng, South Africa, and is a subsidiary of a big solar company in China. The company produces and supplies solar panels and related products, such as batteries, inverters, solar cookers and heaters. The company has been operating in South Africa for the past five years and is doing well in selling solar products for household and business purposes in South Africa and neighbouring countries. The company has identified an opportunity in the electricity shortage in South Africa, which has resulted in rolling blackouts. If the project is successful Solaflex, would sell generated electricity to businesses to meet operational needs. In pursuit of the opportunity, Solaflex planned to install solar collection fields and a plant to convert solar into power. The design of the field should maximise the collection of sunlight to maximise power generation in the available space. If all goes according to plan, the project is expected to take eight months to build from the date of commencement, which is 1 September 2023. The company has also set a budget of R600-million for the project and projected revenue from the project over five years is R720-million. Solaflex has approached the minister of electricity and obtained approval for the project. Once the project is completed, Solaflex will get a licence for a period of 10 years. Thereafter, a review will be done.

(Source: Examiner)

Task: