Electromechanical equipment manufacturer ACTOM High Voltage Equipment, a division of the ACTOM Group, is preparing to participate in State-owned electricity utility Eskom’s Transmission Development Plan (TDP). South Africa’s electricity landscape is undergoing a significant transformation, driven by the introduction of new generation capacity from independent power producers (IPPs), including the planned integration of renewable energy sources, according to ACTOM High Voltage.
Loadshedding is expected to continue in 2024, possibly at even higher levels than those of 2023, says tertiary institute Stellenbosch University’s Centre for Renewable and Sustainable Energy Studies (CRSES) chief engineer Monique le Roux. State-owned power utility Eskom struggled to improve its energy availability factor (EAF) throughout 2023, with the EAF reaching only the same levels as those achieved towards the end of 2022.
Following global trends, discussions in South Africa on hydrogen, its production and use have gained momentum, although actual implementation remains limited, says power technology provider Cummins Africa and Middle East hydrogen and fuel cell business director Alan Zhao. Aligned with other countries, South Africa has been exploring hydrogen as a potential solution for power generation and mobility applications.
Global energy business Puma Energy has acquired a 49% stake in MBHE Group, a company that provides renewable energy solutions to customers across Southern Africa and owns its own high-quality renewable energy assets across the continent. The transaction aligns with Puma Energy’s purpose of energising communities and helping industrial and commercial customers prepare for the future of energy, and decarbonise their operations, with fully integrated renewable energy solutions.
While ‘location agnostic’, South Africa’s inaugural 2 000 MW gas-to-power (GtP) procurement round is limiting the development of facilities in the City of uMhlathuze, where KwaZulu-Natal’s deep-water Port of Richards Bay has been earmarked as a future gas hub, to 1 000 MW – a threshold that will be breached only if the remaining allocation it not taken up elsewhere in the country. Besides this restriction, the first bid window (BW1) of the Gas Independent Power Producer Procurement Programme (GIPPPPP) states that facilities can be located anywhere within the borders of South Africa and must be land based.
Independent power company Globeleq has completed a $37-million senior debt restructuring of its 11 MW Aries and 11 MW Konkoonsies solar plants, in the Northern Cape. The debt restructuring was led by financial services firm Standard Bank.
Independent Power Producer Office head Bernard Magoro reports that work is under way to identify substation sites for the upcoming third Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) round while progressing with the second bid window (BW2) for 615 MW/2 460 MWh across eight substation sites. Speaking during a virtual bidders’ conference, Magoro acknowledged questions posed by several prospective bidders about the prospects of securing the necessary environmental authorisations in time for the sites selected for BW2, which were identified only on December 14 when the request for proposals (RFP) was published.
South Africa’s grid constraints are continuing to cast a shadow over the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), the seventh bidding round for which was launched in December for 3 200 MW of onshore wind and 1 800 MW of solar photovoltaic (PV) after months of delay. Independent Power Producer Office head Bernard Magoro told prospective REIPPPP Bid Window Seven (BW7) bidders during a virtual conference on January 17 that the delays were largely attributed to concerns over the availability of grid-connection capacity in the wind- and solar-rich Eastern, Western and Northern Cape provinces.
Global independent power company ENGIE, which is prioritising the South African electricity market for significant organic and acquisitive growth, is also open to participating in grid investments should government move to open the market to private sector participation. ENGIE South Africa CEO Mohamed Hoosen tells Engineering News that the bigger group already has significant transmission grid assets globally and has also participated in build, own, operate and transfer projects.
The Department of Mineral Resources and Energy (DMRE) and the Independent Power Producer Office (IPPO) have a busy week ahead, with three virtual bidders conferences to be hosted over Wednesday and Thursday, and with the department also schedule to host a public workshop on the draft 2023 edition of the Integrated Resource Plan (IRP 2023). The bidders conferences follow the release, on December 14, of three new requests for proposals (RFPs) for the public procurement of 7 615 MW of new generation capacity from wind, solar photovoltaic (PV), gas to power and battery energy storage technologies.
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