South Africa unpacks big pricing and load factor changes to inaugural gas-to-power procurement

Significant amendments to the request for proposal (RFP) documentation for South Africa’s much-delayed procurement of 2 000 MW of gas-to-power capacity have been unpacked, including an updated fuel pricing formula and an increase in the minimum load factor to 50% for the 20-year duration of the power purchase agreement. Independent Power Producer Office (IPPO) head Precious Edward also used a virtual briefing on the Gas to Power Independent Power Producer Procurement Programme, or GASIPPPP, to reaffirm government’s commitment to the new bid submission deadline of May 29, 2026 – this, for a programme initially launched on December 14, 2023, with an August 30, 2024, deadline.
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Enpower afforded access to trade electricity in Southern African Power Pool

Cape Town-based independent power trading company Enpower Trading has become the first private South African-incorporated company to secure conditional market participant membership from the Southern African Power Pool (SAPP).

The conditional market participant membership allows Enpower to transact across SAPP’s regional platform, enabling both cross-border electricity imports and exports, and sets the stage for a more dynamic and competitive Southern African energy market.

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Wind power skills being developed at Sarens’ Cape Town-based academy

Global crane rental, heavy lift and engineered transport group Sarens has highlighted the capabilities of its training centre in Cape Town, the Sarens Academy South Africa, particularly its focus on developing the skills required by the country’s, and the region’s, growing wind power sector. The wind power training and skills development courses provided by the academy are aligned with the standards of the Global Wind Organisation (GWO). “The wind industry in South Africa will generate between …
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Eskom cuts R1.6bn claim down to R580-million in final Kusile settlement

State-owned utility Eskom has confirmed the successful resolution of a long-standing commercial dispute that began in 2022, with the Stefanutti Stocks Basil Read (SSBR) joint venture (JV) relating to the buildings contract at the Kusile power station, in Mpumalanga. The resolution follows the completion of the formal Dispute Adjudication Board (DAB) process for Claim 5, which is a standard mechanism used on large infrastructure projects to resolve complex contractual claims.
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Japan considering helping South Africa finance energy reform

Japan is in talks with South Africa over potentially helping the country finance the reorganisation of its energy sector. The funding, if implemented, would add to the as much as $150-million lent to the state-owned Development Bank of Southern Africa by Japanese institutions late last year for the funding of renewable energy projects.
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S&P upgrades Eskom’s credit ratings amid turnaround progress

State-owned utility Eskom has welcomed S&P Global Ratings’ decision to upgrade the company’s foreign and local currency long-term credit ratings from B to B+, with a stable outlook. The upgrade also applies to Eskom’s senior secured and unsecured debt, while government-guaranteed foreign currency debt was raised from BB- to BB+. Eskom’s national scale rating improved from zaBBB+/zaA-2 to zaAV/zaA-1.
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COP30 seals uneasy climate deal that sidesteps fossil fuels

Brazil’s COP30 presidency pushed through a compromise climate deal on Saturday that would boost finance for poor nations coping with global warming but that omitted any mention of the fossil fuels driving it. In securing the accord, Brazil hoped to demonstrate global unity in addressing climate change impacts even after the world’s biggest historic emitter, the United States, declined to send an official delegation.
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Eskom prioritises 14 municipalities for Distribution Agency Agreements to tackle R105bn arrear debt

Eskom has identified 14 municipalities for the implementation of five-year Distribution Agency Agreements (DAAs), a controversial mechanism for dealing with arrear debt owed to the utility that now has Cabinet approval. Acting group executive for distribution Agnes Mlambo confirmed in a briefing to lawmakers that the arrear debt owed to Eskom currently stood at R105-billion, with the 14 municipalities representing 58% of this outstanding debt.
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Eskom gets support for arrear mechanism to tackle municipal debt

Engineering News editor Terence Creamer discusses the growing problem of municipal arrear debt owed to Eskom; the support Eskom has received for its Distribution Agency Agreement (DAA) mechanism to tackle this problem; and what is likely to happen next.
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Collaboration highlighted as pivotal to pursue infrastructure development for minerals

Unlocking Africa’s resources potential requires infrastructure development and this should be pursued collaboratively, Electricity and Energy Minister Dr Kgosientsho Ramokgopa said on the second day of the Business 20 (B20) Summit, in Sandton, on November 19. The B20 South Africa 2025 Summit is being held for the first time in Africa, as part of South Africa’s G20 presidency.
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