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Commission recommends approval of Engie’s buyout of Xina CSP

The Competition Commission has recommended that the Competition Tribunal approve the proposed transaction whereby Engie intends to acquire Xina Concentrated Solar Power (CSP) and Xina CSP Operations & Maintenance (O&M), without conditions. In South Africa, the Engie Group supplies a mix of renewable energies. Its energy projects in South Africa include the Aurora Wind Power Project.
December 18, 2020 by

120 MW Golden Valley Wind Energy Facility connected to the grid

The 120 MW Golden Valley Wind Energy Facility, in the Eastern Cape, is the latest wind farm to be connected to South Africa’s national grid.  “We are pleased to announce the successful commissioning of all 48 wind turbine generators as the year draws to an end and we prepare to have our portfolio in operations in the next quarter,” says BioTherm Energy CEO Robert Skjodt.
December 17, 2020 by

Eskom’s bailout emerging as equity swap by biggest bondholder

South Africa’s biggest pot of available cash – R1.91-trillion of civil-servant pensions and unemployment funds managed by the Public Investment Corporation (PIC) – is emerging as the key to rescuing the debt-stricken national power monopoly. The money manager has approached its parent agency, the National Treasury, with a proposal to ease the R464-billion load of obligations crushing Eskom, signaling officials are gearing up for the complex financial and political operation to convert about R95-billion of Eskom debt held by the PIC into equity.
December 17, 2020 by

Govt, IPPs a step closer to lowering electricity tariffs

The Department of Mineral Resources and Energy has managed to complete its first refinancing agreement with an independent power producer (IPP), which is part of an initiative to lower electricity tariffs. The department issued a statement on Monday in which it announced that it had concluded a refinancing agreement with the ACWA Power’s Solafrica Bokpoort Concentrated Solar Power (CSP) power plant. It is part of a refinancing initiative launched by the department in October 2019. All IPPs (64 projects) of the bid windows 1 to 3.5 were invited to participate in the initiative, with the aim to reduce the wholesale price of electricity.
December 14, 2020 by

Eskom outlines streamlined restructuring model to deliver independent grid company by end-2021

Eskom CEO Andre de Ruyter outlined a streamlined approach on Monday to the vertical separation of the State-owned utility into three businesses of generation, distribution and transmission, which he said could accelerate the process of establishing an Eskom-owned independent transmission system and market operator (ITSMO) without the threat of any debt default. Speaking at the release of the group’s interim results to the end of September, De Ruyter again emphasised the importance of creating the ITSMO to support much-needed generation investment by independent power producers (IPPs) and indicated that the target date for the creation of a separate transmission entity remained December 2021.
December 14, 2020 by

Global electricity demand to fall 2% this year, says IEA

Global electricity demand is projected to fall by about 2% this year – the biggest yearly decline since the mid-twentieth century and far larger than what followed the global financial crisis in 2008/9, which resulted in a drop in electricity demand of 0.6% in 2009, the International Energy Agency (IEA) reports. In its inaugural ‘Electricity Market Report’, published on December 14, the IEA states that the contraction in demand this year is a result of the Covid-19 pandemic and its impact on economic activity.
December 14, 2020 by

Hunt on for ‘tens of billions’ more, as ABB agrees to repay R1. …

Eskom and the Special Investigating Unit (SIU) announced on Friday that an agreement had been reached with ABB South Africa in terms of which the multinational technology group would repay R1.56-billion to the State-owned utility to settle an overpayment dispute relating to a corrupt Kusile contract awarded in 2015. Eskom would, however, request the National Treasury not to blacklist ABB as a contractor, as the control and instrumentation (C&I) package in question was 90% complete and the appointment of a replacement contractor could delay the already-delayed Kusile by a further four years and raise the threat of standing-time claims from other contractors worth up to R1-billion.
December 11, 2020 by

ChromeSA welcomes negotiated electricity pricing concession

Independent chrome ore producers group ChromeSA has welcomed the finalisation by the Department of Mineral Resources and Energy (DMRE) of a short-term framework for negotiated pricing agreements, which will allow companies negatively affected by the high costs of power to negotiate lower electricity tariffs with those entities who supply their power. “This welcome move by government will provide critical support to our colleagues in the ferrochrome industry, who have highlighted the desperate impact that escalating power costs have on their ability to compete in global markets.
December 11, 2020 by