State-owned electricity utility Eskom is focusing on reducing coal intensity and expanding renewable energy as part of its commitment to a sustainable future. This shift in strategy prioritises maintaining plant health over simply “keeping the lights on at all costs” – a practice that has proven ineffective, according to Eskom primary energy GM Dan Mashigo.
South Africa’s energy market is undergoing various changes, including the unbundling of State-owned power utility Eskom, as well as licence exemptions for independent power producers (IPPs). The latter has eased access for new projects, but has also affected grid access and publicly procured generation, says IPP Globeleq general counsel Marlise Schmidt. “Eskom, with its historical monopoly over generation, transmission and distribution in South Africa, has faced numerous difficulties, including financial challenges, ageing infrastructure and issues related to governance.”
Minister in the Presidency Khumbudzo Ntshavheni reports that the Cabinet committee set up to consider interventions to moderate fuel price increases is likely to turn its attention to electricity tariffs amid growing fears of another steep hike in 2025. Responding to questions posed during a post-Cabinet briefing, Ntshavheni said Cabinet was aware of growing anxiety over impending applications to the regulator that could, if approved, result in increases of between 36% and 44% next year.
Energy infrastructure project delivery company OptiPower, which is a trading division of engineering and contracting company Murray & Roberts (M&R), has, in a joint venture (JV) with Spanish energy and water utility Coxabengoa, been awarded a contract to build a 100 MW solar PV plant for an unnamed mining company with operations in South Africa’s North West province. The contract is valued at about R1.2-billion, with OptiPower’s share in the JV being 50%, M&R says.
The National Transmission Company South Africa (NTCSA) has appointed 19 overhead-transmission line contractors to three separate supplier panels as it moves to position itself for a R32-billion build programme over the coming eight years. The companies were selected following a tender issued in May 2023, with five of the companies having been appointed to an engineering, procurement and construction (EPC) panel, nine to a procurement and construction panel, and 17 to a construction panel.
Electrical equipment manufacturer WEG Africa has completed a large substation E-house solution, which includes distribution transformers and a diesel generator set, for energy and chemicals company Sasol’s Upstream production sharing agreement (PSA) project, in Mozambique. The E-house solution was procured by engineering, procurement and construction management contractor Wood, was locally designed and manufactured by WEG Africa and supplied in partnership with local engineering firm Proconics.
The latest edition of the South African Renewable Energy Grid Survey points to there being massive and growing interest from developers of solar PV, wind, battery and hybrid plants to connect to the South African grid. Published jointly by Eskom Holdings’ National Transmission Company South Africa (NTCSA), the South African Photovoltaic Industry Association and the South African Wind Energy Association, the survey shows there to be projects with a combined capacity of 133 GW at various stages of development across the country.
The Gauteng High Court’s rejection of a leave to appeal application by the National Energy Regulator of South Africa (Nersa) related to proposed municipal tariff hikes, is a victory for municipal electricity consumers, civil rights organisation AfriForum says. Earlier this year, the same court ruled in AfriForum’s favour, confirming that Nersa’s decision to consider municipalities’ applications for tariff hikes without the required cost-of-supply studies was unlawful.
The renewal of technology group Wärtsilä’s operations and maintenance (O&M) agreement with QIT Madagascar Minerals (QMM), which is part of the Rio Tinto group, has been expanded to include a decarbonisation agreement. Wärtsilä says the agreement is a groundbreaking offering in the energy sector and allows for optimising all of the assets in the microgrid, including renewable-energy use, thereby not only reducing emissions but also producing notable cost savings.
The Independent Power Producer Office (IPPO) has confirmed that 48 onshore wind and solar PV bids with a combined capacity of 10 218 MW have been submitted under Bid Window Seven (BW7) of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The bids were submitted ahead of the August 15 deadline, which was postponed from an initial date of April 30, largely owing to grid-access-related delays.
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