European photovoltaic (PV) company Scatec Solar will be acquiring 100% of the shares in hydropower developer and independent power producer (IPP) SN Power from Norwegian investment fund Norfund for just over $1.1-million. The acquisition forms an important part of Scatec’s broadened growth strategy, with an ambition to become a global large-scale player in solar, hydro, wind and storage solutions, and an integrator of high-value infrastructure solutions. Scatec and SN Power have a unique and complementary portfolio of assets, geographical footprint and capabilities, and will together hold a large project pipeline across solar, hydro, wind and storage, the companies noted in an October 16 statement.
Mineral Resources and Energy Minister Gwede Mantashe has gazetted amendments to the electricity regulations for new electricity generation capacity, opening the way for “municipalities in good financial standing to develop their own power generation projects”. The Gazette notice amends the Electricity Regulations on New Generation Capacity in terms of Section 35(4) of the Electricity Regulation Act (ERA), of 2006, and has been published a day after President Cyril Ramaphosa released government’s Reconstruction and Recovery Plan, which lists the rapid expansion of energy generation capacity as a top priority.
For many years, the benefits of liquefied petroleum gas (LPG) for South Africa “have been largely, frustratingly, moot”, according to a statement from industry association LPG South Africa (LPGSA). The doubt surrounding LPG’s benefits stems from an historically inconsistent and unreliable supply of LPG in South Africa, but LPGSA says LPG availability in South Africa is on the rise.
Energy solutions company GE expects gas power to play an increasingly important role in the medium- to long-term future of the country’s energy mix as government continues to pursue decarbonisation through balancing the demands between a coal-fired past and a renewables future. GE Gas Power regional executive Nosizwe Dlengezele says major recent gas discoveries will provide supply in the long term, while local and regional gas resources, including liquified natural gas (LNG), will provide fuel options in the short term.
With the potential of gas as an alternative energy source in South Africa an encouraging prospect, South African Oil and Gas Alliance (Saoga) CEO Adrian Strydom says the gas-to-power industry needs to conduct an accurate gap analysis, and engage in upskilling and capacity building to ensure that South Africa is on par with world-class standards. South Africa’s National Development Plan regards natural gas as a viable alternative to coal. It further emphasises liquid natural gas (LNG) import facilities and exploration for domestic gas as infrastructure priorities.
In a capital-constrained Covid-19-affected market, gas-fired generators offer the advantage of a relatively low upfront capital cost, compared with coal- or diesel-fired alternatives, says energy solutions company GE Gas Power Sub-Saharan Africa executive Nosizwe Dlengezele. She adds that it is also easier and cheaper to upgrade older gas-fired assets.
Although not many realise it, South Africa is an arid country and there is a pressing need to address water scarcity, which is why pump manufacturer Grundfos places such emphasis on energy efficiency and addressing water leakages in pumping systems, says team leader Andrew Brunette. He laments that, owing to leakages in piping, damages or even illegal connections, about 30% of pumped water from treatment plants to communities is lost.
Eskom CEO Andre de Ruyter has drawn a direct link between securing the investment required to address South Africa’s growth-sapping electricity supply gaps – including some R100-billion to further develop the grid in ways to unlock what will be mostly private generation investment – and the creation of an Independent Transmission System and Market Operator (ITSMO). Speaking during a webinar on Thursday, De Ruyter stressed that private investment in generation “requires independence in transmission and market operation” to overcome concerns of potential bias in areas such as grid and market access, dispatch instructions and procurement decisions.
President Cyril Ramaphosa listed the rapid expansion of South Africa’s electricity generation, primarily through the building of additional renewable-energy capacity, as a key priority in government’s long-waited ‘Reconstruction and Recovery Plan’, which he unveiled in Parliament on Thursday. The other components of the plan, developed in response to the economic and employment fallout from the Covid-19 pandemic, included: a multibillion-rand infrastructure roll-out; the creation of 800 000 employment opportunities through public works schemes; initiatives to revive industrial growth; a fast-tracking of reforms to reduce the cost of doing business and lower barriers to entry; actions to combat crime and corruption; and programmes aimed at improving the capability of the State.
South Africa will roll out a big infrastructure spending programme and large-scale employment stimulus to revive an economy that was ailing even before the coronavirus crisis, President Cyril Ramaphosa said on Thursday. Unveiling a Covid-19 economic recovery plan in parliament, Ramaphosa said the government would unlock more than R1-trillion rand in infrastructure investment over the next four years and would create more than 800 000 jobs in the immediate term. Government is also working on finalising a long-term solution to State power utility Eskom’s debt burden, without giving a time frame.
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