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Energy expert writes to government calling for overhaul of RMIPPPP ahead of July financial close

An energy expert has written to the Department of Public Works and Infrastructure (DPWI) and the Independent Power Producer (IPP) Office to highlight the expensive shortcomings of the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP), which he says should be replaced by a materially larger, yet more cost-effective, procurement programme based primarily on renewables and storage, rather than power ships. DPWI, together with The Presidency, is overseeing the implementation of the Strategic Infrastructure Projects, or SIPS, earmarked for priority implementation as part of government’s economic recovery from the Covid-19 pandemic. The RMIPPPP is one of the 62 initial SIPS Gazetted in line with the Infrastructure Development Act.

Eskom says Oracle halts technical support

Eskom Holdings said it was urgently seeking new providers of technical support after Oracle Corp’s South African unit withdrew its services over a payment dispute. The State power utility has been in a disagreement with Oracle, which initially claimed Eskom underpaid it by about R7.3-billion, before reducing the amount to R380-million.

Gas is the new coal with risk of $100bn in stranded assets

Natural gas is falling out of favor with emissions-wary investors and utilities at a quicker pace than coal did, catching some power generators unaware and potentially leaving them stuck with billions of dollars of assets they can’t sell. Citigroup Inc. and JPMorgan Chase & Co. are among the banks that strengthened their financing restrictions on thermal coal under pressure from shareholders wanting to avoid the fuel, and the expectation is that gas is next. Executives at some western European companies say they’re already struggling to sell gas-fired facilities.

City Power to clear electricity lines servitudes of encroaching objects

City of Johannesburg utility City Power will embark on a three-week programme to patrol and clear electricity lines servitudes of encroaching objects, it said on April 15. An investigation conducted by City Power into the cause of frequent power outages affecting the north-eastern corridors, especially the Greenstone area, found that, while most of the outages were owing to vandalism and cable theft, a worrying number were owing to faults on the overhead lines caused by encroaching objects, including trees and buildings.

Electricity grids to benefit from IoT

Embracing renewable energy, adapting business models, reducing operational expenditure and using Internet of Things (IoT) technologies can lead to effective power generation and transmission, says University of Pretoria (UP) associate professor Raj Naidoo. While the energy model for electricity generation is evolving at a rapid rate globally, South Africa’s initiatives to integrate renewables sourced power into the coal-dominated generation programme have been slow.

Sector gets skills development boost

The off-grid energy sector is continuing to grow, with shifts towards using standalone off-grid and renewable-energy-powered minigrid systems, as such systems can provide electricity in areas where current grid infrastructure cannot reach. However, despite the growth in the sector, there has been little focus on skills development programmes for local human capital.

Solar to offer relief for the grid

Southern Africa is familiar with low levels of electricity access and frequent electricity power cuts, owing to dilapidating infrastructure and its inadequacy to provide electricity in rural areas. However, using alternative and more affordable energy sources, such as solar, wind and waste-to-energy solutions, will enable rural communities to have access to electricity, says advisory firm Birguid’s associate and chief financial officer Kudzaishe Chivandire.