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Eskom splits off transmission division

South African power utility Eskom said on Monday it had executed the separation of its transmission division, subject to certain conditions, in line with an end-December deadline set in a restructuring plan. President Cyril Ramaphosa said in 2019 that the debt-laden utility would be split into three divisions – generation, transmission and distribution – to improve management of a company that has relied heavily on government bail outs and frequently implements nationwide power cuts.
December 21, 2021 by

Global coal-fired power demand at all-time high, threatening net zero goals

Global coal-fired electricity generation is powering towards an all-time high, as the rapid economic recovery of 2021 has pushed up demand faster than low-carbon supplies can keep up, while steeply rising natural gas prices have made coal more competitive, says the International Energy Association (IEA).

In its ‘Coal 2021’ report, published on December 17, the IEA states that electricity generation from coal is forecast to jump by 9% in 2021, to a record 10 350 TWh.

December 17, 2021 by

Eskom set to halve FY loss to R9bn, but R392bn debt remains ‘unsustainable’

State-owned electricity utility Eskom expects to cut its full-year loss to R9.1-billion in 2021/22, from R18.9-billion in 2020/21, but warns that its debt position remains unsustainable despite some positive financial momentum during the six months to September 30, including a reduction in its overall debt to R392-billion. CEO André de Ruyter reported on Thursday that Eskom made a R9.2-billion profit during the first half of its financial year, on the back of higher tariffs (15.06%) and sales volumes (8%) and reduced costs (R20-billion in savings targeted).
December 15, 2021 by

Eskom to release Mpumalanga land to catalyse investments in sub-100 MW renewables projects

Public Enterprises Minister Pravin Gordhan has announced that Eskom is preparing to release land in the coal-rich Mpumalanga province for sub-100 MW distributed electricity projects that can now be built without a licence and wheel electricity through the grid for self-consumption, or for sale to third-party consumers. Speaking during the State-owned utility’s interim results presentation, Gordhan said that Eskom owned about 36 000 ha of unutilised land in Mpumalanga, including in and around eMalahleni, which had also been designated as a Renewable Energy Development Zone.
December 15, 2021 by

REIPPPP Bid Window 5 to provide important link in local value chain

Wind turbine original-equipment manufacturer (OEM) Nordex Energy South Africa sees Bid Window 5 (BW5) of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) as an important link in driving the local value chain, saying it will directly stimulate the domestic job market.

MD Compton Saunders says the wind power industry is expected to drive an estimated R40-billion of investment each year over the next decade, with a fairly large percentage to come from the economic benefits of stimulating the local value chain.

December 15, 2021 by

DMRE releases Gas Masterplan base case report

The Department of Mineral Resources and Energy (DMRE) has released the Gas Masterplan base case report for public comment.

The Gas Masterplan, once developed, will serve as a policy instrument, providing a roadmap for taking strategic, political and institutional decisions, which will guide industry investment planning and coordinated implementation.

December 15, 2021 by

Ellies reports first-half loss in earnings despite load-shedding boom

JSE-listed diversified electronic and alternative energy products manufacturer and distributor Ellies, impacted by global and local supply chain challenges of the Covid-19 pandemic, the July civil unrest and weak trading conditions, has reported a loss before interest, taxes, depreciation and amortisation of R19.5-million for the six months ended October 31.

This is attributable to a 38.2% decrease in gross profit when compared with the comparative reporting period of 2020.

December 15, 2021 by

Building owners have one year left to obtain energy performance certificates

Owners of buildings in South Africa have one year left to obtain and prominently display an Energy Performance Certificate (EPC) or risk a fine of R5-million, five years imprisonment or both. The regulations, under the National Energy Act, were gazetted a year ago and apply until December 7, 2022, meaning that building owners who have not acted have a year left in which to comply.
December 14, 2021 by

HSBC says it will phase out financing of thermal coal by 2040

HSBC Holdings is planning to phase out the financing of coal used for generating electricity by 2040, the latest bank to commit to ending support for the greenhouse gas-intensive fossil fuel. The London-based lender will stop financing thermal coal in the European Union and countries belonging to the Organisation for Economic Cooperation and Development by 2030, and all other nations a decade later, according to a statement Tuesday. Clients related to the energy source are expected to publish transition plans and those that aren’t compatible with HSBC’s goal to reach net-zero by the middle of the century won’t be provided with new finance.
December 14, 2021 by