South Africa’s move to increase electricity generation capacity provided a “unique opportunity” for the development of new industries, Mineral Resources and Energy Minister Gwede Mantashe said this week. Addressing delegates virtually during Canada’s annual Prospectors and Developers Association Convention, Mantashe highlighted that South Africa’s Economic Reconstruction and Recovery Plan, developed in response to the Covid-19 pandemic, emphasised the importance of addressing the country’s long-standing electricity supply deficit so as to use energy as a “catalyst for economic growth”.
Diversified miner Glencore says the suggestion that it had involved President Cyril Ramaphosa, who used to be the chairperson of the Optimum coal mine, in the acquisition of Optimum Coal Holdings (OCH) with a view to, or with the expectation of leveraging his influence to achieve amendments to OCH’s coal supply agreement (CSA) with power utility Eskom is “false and baseless”. This is in response to allegations made by former Eskom CEO Brian Molefe at the Zondo Commission on March 2. According to News24.com, Molefe claimed that Glencore had used its relationship with Ramaphosa to try to extort money from Eskom when the parties were renegotiating the CSA.
UN Secretary-General Antonio Guterres on Tuesday called on wealthy nations to end coal use by 2030 so the world can meet its goals to curb global warming, urging G7 nations to make that commitment before or at a leaders’ summit in June.
In a video message to a virtual gathering of the “Powering Past Coal Alliance”, Guterres said emissions-cutting pledges by governments fell far short of what is needed to limit climate heating to 1.5 °C above preindustrial levels.
But if immediate action were taken to end use of what he called the dirtiest, most polluting and increasingly costly fossil fuel in power generation, “then we have a fighting chance to succeed”, he added.
Africa’s recovery from the impacts of the Covid-19 pandemic will take a long time, as each country has experienced different levels of disruption, and therefore, require different pathways. This was indicated during a World Energy Council session as part of the virtual Africa Energy Indaba on March 2.
In trying to bridge the energy gap on the continent, Africa faces a trilemma of balancing fossil fuels, poverty and climate change, but strides are being made in this regard, speakers noted during a panel discussion held as part of the virtual African Energy Indaba. Africa House Market Access and Research director Duncan Bonnet said technological advancements over the past few years has led to dramatic development in the energy arena, and therefore, players in the sector need to be cognisant of this, and things cannot be looked at merely from a historical perspective.
Minigrids have the potential to accelerate energy access in Africa and costs are starting to come down, while reliability and financing are improving; however, further improvements are needed in terms of regulatory frameworks to engender a level playing field and transparency and certainty around tariffs and subsidies . Africa Minigrid Developers Association (Amda) CEO Aaron Leopold told delegates attending the virtual Africa Energy Indaba on March 2 that, according to data the organisation is collating from 2019 and 2020, the number of minigrid projects almost doubled across the continent in one year, which points to encouraging growth in the sector.
Industry body the South African Photovoltaic Industry Association (SAPVIA) COO Niveshen Govender says the organisation supports the implementation of technology-specific, nuanced procurement programmes based on long-term capacity requirements to facilitate cheaper power. Energy security is a fundamental building block, necessary to achieve higher economic growth and employment levels, and the association welcomed Finance Minister Tito Mboweni’s recognition in the budget speech of the role that the private sector will play in restarting the engines of sustainable growth, he adds.
In an Africa Energy Indaba panel moderated by Standard Bank renewable energy head Rentia van Tonder, on March 1, she pointed out that a lack of financing remains a major prohibitor for power generation project development in Africa.
She said political and credit risks remain prevalent for investors, which necessitates the development of innovative funding solutions toward making projects more bankable.
African Developm
The International Renewable Energy Agency (Irena) is urging African policymakers to use their limited public resources strategically, and alongside policy and regulatory instruments, to unlock the $105-billion required yearly to install the 1 026 GW of renewable energy needed by 2050 to meet the continent’s growing electricity demand. Speaking at the virtual Africa Energy Indaba on Monday, director-general Francesco La Camera highlighted the disproportionate role of public finance in Africa’s renewables sector.
South Africa would be foregoing an “extraordinary opportunity” should if fail to develop local manufacturing capacity around its large-scale and multidecade deployment of renewable energy, Eskom CEO Andre de Ruyter argued on Monday. Speaking during the opening session of the virtual Africa Energy Indaba 2021, De Ruyter said the country’s transition from a coal-dominated electricity supply industry to one based increasingly on wind and solar should also be viewed as a real industrialization opportunity.
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