Pandemic, war and ‘crazy’ prices menace South African pivot from coal

South Africa, where daily blackouts are a fact of life, knows better than most that it cannot rely on coal power. But just when its plans to shift to renewable energy to help drive Africa’s most industrialised economy were gaining momentum, rising costs linked to the pandemic and the war in Ukraine threaten further delay.
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Ramaphosa reflects on how far transformation has come

Since the launch of government’s Black Industrialists Programme in 2015, coupled with efforts from the Industrial Development Corporation, the National Empowerment Fund and other agencies, more than 900 black industrialists have been supported, to the value of R55-billion. In turn, this has delivered socioeconomic returns valued at R160-billlion to the economy and created more than 50 000 jobs, President Cyril Ramaphosa announced at the Black Industrialists and Exporters conference, held in Sandton, on July 20.
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Eskom faces growing financial strain, S&P Global says

South African power utility Eskom faces increased financial pressure from lower than anticipated tariffs, rising diesel costs and the impact of labour disruptions, all which could lead to the need to raise more capital, rating agency S&P Global said. Intermittent power cuts have been blamed for hindering growth in Africa’s most advanced economy.
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Power Sector carbon emissions to dip as renewables outpace coal

A surge in renewable power coupled with a slowdown in China will see carbon emissions from electricity production ease from the record level last year, according to the International Energy Agency (IEA). Emissions from power generation are set to decline about 0.3% this year, down from a forecast in January that emissions would remain flat, the IEA said in its Electricity Market Report. That pace will need to increase more quickly to get the world on a trajectory that will avoid the worst consequences of climate change.
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Gordhan sends SOS to trade union Solidarity, accepts offer to help Eskom with critical skills

Public Enterprises Minister Pravin Gordhan has asked trade union Solidarity to provide a list of people with the necessary technical skills to help government address the skills crisis at Eskom. On 14 July, Gordhan wrote to the managing director of Solidarity, Dirk Hermann, to thank the trade union for its offer in May this year to mobilise critical skills.
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Scatec confident R16.4bn solar-battery project will lay renewables ‘intermittency’ debate …

Renewable-energy solutions provider Scatec is optimistic that its R16.4-billion solar-battery project in the Northern Cape will finally address long-standing questions about the so-called “intermittency” of renewables. The project, which achieved financial close this week, will couple 540 MW of solar photovoltaic (PV) generators to lithium-ion batteries with a capacity of 225 MW/1 140MWh to provide 150 MW of dispatchable power into South Africa’s grid under a 20-year power purchase agreement.
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Eskom denies discouraging the switch to solar with possible R900 per month tariff

Solar PV users could pay over R900 per month for Eskom’s grid-tied electricity per month, based on the 2020/21 proposal from the power utility. But Eskom says it is not trying to disincentivise people from opting for solar PV. Eskom intends to submit a new tariff proposal to the National Energy Regulator of South Africa (Nersa) in August 2022 – it will apply from 1 April 2023 and 31 March 2024. It will be based on the principles of the 2020 plan, on which Nersa did not make a decision.
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Conference finds opportunities are abundant for renewable energy suppliers

There is a huge opportunity for South African suppliers to cater to the growing renewable energy market in sub-Saharan Africa (SSA), particularly if they establish themselves within special economic zones (SEZs), consultancy XA International Trade Advisors noted on July 19.

XA International Trade Advisors director Donald MacKay spoke during the UK-government-funded initiative Trade Forward Southern Africa (TFSA) and research institution Africa House-hosted Renewable Energy Product & Expertise Showcase, in Cape Town.

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GWEC outlines fives measures to combat energy, climate change crises

The Global Wind Energy Council (GWEC) has published a five-point action plan titled “Accelerating renewables to achieve energy security, affordability and climate action” to help policymakers steer a way out of the current energy and climate change crises.

The plan – addressing the need to restore order to energy markets while meeting climate goals and creating a secure, stable energy transition – was published on July 19 against the background of record temperatures globally and economic stress around the world driven by these crises.

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Eskom approaches court for review of Nersa’s treatment of regulatory asset base, warning it …

Electricity utility Eskom will challenge the National Energy Regulator of South Africa’s (Nersa’s) most recent revenue determination in court but will restrict the challenge to the regulator’s approach to determining its regulatory asset base (RAB). The challenge is the latest in a growing number of legal disputes between Eskom and Nersa, with the majority of the rulings to date having been made in favour of the utility.
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