Entries by

Nedbank sees South Africa clean energy loans jump to R50bn

Nedbank Group wants to almost double its lending to green energy projects in South Africa over the next two years as it seeks to cement its position as a market leader in funding renewable power projects. The bank’s lending toward the government’s Renewable Independent Power Producer Programme – aimed at boosting privately generated electricity in the nation – may jump to about R50-billion n the “short-to-medium term” from 29 billion rand, said CEO Mike Brown.
August 1, 2022 by

Nersa consultation paper on next Eskom tariff points to possible 38.1% hike

The National Energy Regulator of South Africa (Nersa) has formally initiated the process of adjudicating Eskom’s next tariff increase with the publication of a consultation paper on the utility’s allowable revenue application for 2023/24 and 2024/25. The paper includes a pro forma tariff calculation indicating that Eskom’s tariff could increase by as much as 38.1% on April 1 next year, followed by a further 5.12% increase in 2024/25.
July 29, 2022 by

Eskom confirms R4.4bn battery contracts as it moots bigger roll-out

State-owned electricity utility Eskom has confirmed the award of contracts, with a combined value of R4.4-billion, to Hyosung Heavy Industries, of South Korea, and the Pinggao Group, of China, for battery energy storage system (BESS) projects that will be delivered across several sites by the end of June next year. The contracts cover the lion’s share of the individual projects included as part of Phase 1 of a two-phase roll-out being funded by the World Bank, the African Development Bank, the New Development Bank and the Clean Technology Fund.
July 29, 2022 by

44 MW solar plant gets refinanced by shareholders

The Concentrator Photovoltaics Power Plant No.1 (CPV1), a 44 MW concentrated solar photovoltaic plant in the Western Cape, has successfully been refinanced by its shareholders Pele Green Energy (PGE), the Public Investment Corporation (PIC) and Touwsrivier Solar Community Trust, which represents the local community of Touwsrivier. The refinancing involved the delisting of a JSE-listed bond and converting the debt into a limited recourse project finance instrument.
July 28, 2022 by

South Africa set to take over part of Eskom’s R396bn debt

South Africa’s Treasury is finalising a plan to take over a portion of Eskom Holdings’ R396-billion debt as part of a process to place the struggling electricity company on a sustainable footing, a top official said. The “broad brush strokes” of the debt transfer will be announced in the mid-term budget scheduled for October, Duncan Pieterse, head of assets and liability management at the National Treasury, said in an interview Wednesday. The authorities will seek cabinet and parliament’s approval for the plan after determining the amount, along with the conditions the utility will need to meet before and following such a transaction.
July 28, 2022 by

ArcelorMittal to seek access to rail network amid a collapse in Transnet service

ArcelorMittal South Africa (AMSA) has confirmed that it will seek to secure third-party access to Transnet’s rail network as part of efforts to stabilise the logistics involved in supplying key raw materials, such as iron-ore, having experienced an intense period of rail disruption during the first half of 2022, which cost it some R650-million in lost sales. CEO Kobus Verster reports it has told Transnet Freight Rail (TFR) of its intention to gain access to the rail network, despite the fact that the utility has not yet made a suitable general-freight slot available to AMSA, resulting in a legal lacuna.
July 28, 2022 by

Eskom, Netherlands Embassy to collaborate further on repurposing of the Grootvlei power station site

Power utility Eskom and the Netherlands Embassy have signed a letter of intent to guide the next phase of collaboration between the two parties. In the next phase of the collaboration, Eskom and the Netherlands Embassy, supported by the Netherlands Enterprise Agency, intend to work along two tracks – prefeasibility for a climate-smart, labour-intensive agricultural/horticulture development on the Grootvlei power station site and an integrated and sustainable approach for repurposing of the Grootvlei power station site.
July 28, 2022 by

As silent rooftop revolution gathers pace, attention turns to fair tariff structure

President Cyril Ramaphosa’s announcement that a feed-in tariff is to be created to incentivise businesses and households to invest in rooftop solar is likely to further stimulate the so-called ‘silent revolution’ that is already under way as South Africans seek to navigate their way through an intensifying load-shedding crisis. The President confirmed that the feed-in tariff would incentivise homes and businesses to sell surplus power to Eskom.
July 28, 2022 by

SAWEA voices support for Ramaphosa’s electricity security interventions

The South African Wind Energy Association (SAWEA) has applauded the numerous interventions outlined by President Cyril Ramaphosa to tackle South Africa’s energy crisis. The association said on July 26 that it viewed the plan as being sharply focused on the key areas of concern, encompassing the improvement of state-owned Eskom’s energy availability factor (EAF) with maintenance; bringing all available energy into the system quickly; accelerating new generation capacity; addressing bureaucratic blockages; and liberalising the energy system.
July 27, 2022 by

Environmental disregard, ambiguity and inclusion of gas in new energy plan of concern for …

President Cyril Ramaphosa’s plan to arrest a degradation in the prevailing electricity generation deficit issue in South Africa has been welcomed by several organisations as a measure that took into account consultation from various perspectives, as well as one that addresses rolling out new generation capacity in an environment-friendly way.

On July 25, Ramaphosa  presented an energy plan, which renewable energy advocacy movement 350Africa.org believes represents a major step forward in tackling the country’s energy and climate crisis through renewable energy.

July 27, 2022 by