Entries by

SAPVIA supports large and small IPP procurement for long-term capacity

Industry body the South African Photovoltaic Industry Association (SAPVIA) COO Niveshen Govender says the organisation supports the implementation of technology-specific, nuanced procurement programmes based on long-term capacity requirements to facilitate cheaper power. Energy security is a fundamental building block, necessary to achieve higher economic growth and employment levels, and the association welcomed Finance Minister Tito Mboweni’s recognition in the budget speech of the role that the private sector will play in restarting the engines of sustainable growth, he adds.
March 1, 2021 by

Institutions share their energy investment perspective in Africa

In an Africa Energy Indaba panel moderated by Standard Bank renewable energy head Rentia van Tonder, on March 1, she pointed out that a lack of financing remains a major prohibitor for power generation project development in Africa.

She said political and credit risks remain prevalent for investors, which necessitates the development of innovative funding solutions toward making projects more bankable.

African Developm

March 1, 2021 by

Africa urged to unlock private finance to raise yearly renewables investment to $105bn

The International Renewable Energy Agency (Irena) is urging African policymakers to use their limited public resources strategically, and alongside policy and regulatory instruments, to unlock the $105-billion required yearly to install the 1 026 GW of renewable energy needed by 2050 to meet the continent’s growing electricity demand. Speaking at the virtual Africa Energy Indaba on Monday, director-general Francesco La Camera highlighted the disproportionate role of public finance in Africa’s renewables sector.
March 1, 2021 by

De Ruyter urges greater industrial policy integration with renewables roll-out

South Africa would be foregoing an “extraordinary opportunity” should if fail to develop local manufacturing capacity around its large-scale and multidecade deployment of renewable energy, Eskom CEO Andre de Ruyter argued on Monday. Speaking during the opening session of the virtual Africa Energy Indaba 2021, De Ruyter said the country’s transition from a coal-dominated electricity supply industry to one based increasingly on wind and solar should also be viewed as a real industrialization opportunity.
March 1, 2021 by

Probe finds Mpumalanga, Gauteng hydrogen sulphide levels above WHO recommendations

An ongoing probe by the Department of Environment, Forestry and Fisheries (DEFF) to determine the cause of the high levels of air pollution reported in Mpumalanga and Gauteng during the week of February 11 to 17 has determined that sulphur dioxide (SO2) levels were in compliance with ambient air-quality standards across all stations during the week, but that levels of hydrogen sulphide (H2S) had been elevated at times during the week. The probe followed reports of persistent, unpleasant smells in the western parts of Mpumalanga and eastern Gauteng during that week. The DEFF said the sulphurous stench was most likely a combination of elevated levels of SO2 and H2S.
March 1, 2021 by

Eskom bondholders take comfort from guarantee amid rescue talks

Bondholders of South Africa’s state-owned electricity company are watching the latest round of rescue talks from a distance. Yields suggest they’re confident their money is safe, whether or not the discussions result in a sustainable solution for Eskom Holdings’ $32-billion debt pile. Eskom’s risk premium over South African sovereign debt narrowed to a 19-month low last week and remained near that level even amid global bond turmoil. Investors including T Rowe Price International, Insight Investment Management and Aberdeen Standard Investments said they haven’t been approached about the debt plan, but believed a solution could be reached.
March 1, 2021 by

Planning commission wants new climate-change commission to drive ‘just transition’ social …

The outgoing National Planning Commission (NPC) is preparing to hand over the extensive work it has done to build consensus on South Africa’s ‘just transition’ to a low-carbon and climate-resilient society to the newly formed Presidential Coordinating Commission on Climate Change (PCCCC). When doing so this week, Commissioner Tasneem Essop said that it would emphasise that a transparent and inclusive process, which included affected workers and communities, was as important as the outcomes, as developing a social compact on the just transition was a political process rather than a technical exercise.
February 26, 2021 by

Energy Regulator approves 40 MW solar licence for Gold Fields’ South Deep

The National Energy Regulator of South Africa (Nersa) announced on Thursday that the Energy Regulator, at its meeting held on February 25, approved the issuance of a generation licence for a 40 MW solar photovoltaic (PV) plant to be developed at the South Deep gold mine, in Gauteng. The licence was granted to GFI Joint Venture Holdings Proprietary Limited and Gold Fields Operations Limited (South Deep Joint Venture) to operate a generation facility to be constructed in Westonaria, south-west of Johannesburg.
February 25, 2021 by

Government commits to improving infrastructure spending

The 2021 Budget, presented by Finance Minister Tito Mboweni on February 24, outlines that R93.1-billion has been earmarked for economic regulation and infrastructure, from consolidated government expenditure of R2.02-trillion each year over the medium term. To boost infrastructure spending, government plans to partner with the private sector, multilateral development banks and development finance institutions to augment its skills, expertise and funding.
February 24, 2021 by

Investec-backed energy fund plans R1.5bn South Africa IPO

Revego Africa Energy Fund, an investor in South African renewable projects, is looking to raise as much as R1.5-billion by April with the industry poised to grow.The fund is backed by Investec, the Eskom Pension & Provident Fund and UK Climate Investment and is seeking to list on Johannesburg’s stock exchange, according to Revego Fund Managers chief investment officer Michael Meeser. “We have already identified assets equal to that value and have actually signed purchase agreements,” he said.The listing may come as South Africa starts to accept bids from independent energy producers to help ease the burden on state-owned utility Eskom Holdings, which struggles to meet the country’s electricity demand. The government is committed to buy an additional 11 800 MW of power from various sources, President Cyril Ramaphosa reiterated this month.
February 24, 2021 by