Author Archive for: Engineering News

Eskom cancelled coal-supply agreements and construction contracts valued at R11-billion, as the South African authorities crack down on crime at the State-owned utility, President Cyril Ramaphosa said. Litigation by Eskom has also had coal-supply agreements worth R3.7-billion declared invalid, and other coal and construction deals worth R10-billion have been set aside, Ramaphosa said in response to a question submitted by an opposition lawmaker in parliament.

Independent power producer Globeleq has bought renewable energy company Scatec’s 52.5% interest in the 41 MW Mocuba solar photovoltaic plant, in Mozambique, for $8.5-million. It will also acquire Norwegian pension fund KLP Norfund Investments’ 22.5% stake in the plant, giving it a 75% interest in the plant. National utility Electricidade de Moçambique (EDM) will continue to hold the remaining 25%.

On Monday, Fitch again maintained its “BB-” credit rating on South Africa – despite now expecting no economic growth this year. The US credit rating agency kept its “stable” outlook on South Africa’s long-term foreign and local currency debt ratings.

The government-default component of the government guarantees extended to the independent power producers (IPPs) that will be selected to build new solar and wind projects under the upcoming seventh bid window (BW7) of South Africa’s programme for the procurement of renewable energy will be reduced from 100% to 80%. IPP Office head Bernard Magoro tells Engineering News that the reduction follows a National Treasury review of the Government Support Framework Agreement, as well as consultations with the market over the past year.

Electrical equipment and services company Actom has been awarded contracts to supply battery energy storage systems (BESSs) for two international electrical companies appointed to design, execute and manage the first phase of State-owned Eskom’s two-phase programme, launched earlier this year. Actom’s Power Transformers, Medium-Voltage (MV) Switchgear and High-Voltage Equipment and Distribution Transformers divisions were awarded various contracts for South Korean industrial equipment company Hyosung Heavy Industries and Chinese electrical equipment and switchgear company Pinggao Group.