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Four energy scenarios that may define Southern Africa’s energy transition

Four vastly different energy transition scenarios, from very ambitious to the least ambitious, were posited by management advisory Africa International Advisors integrated energy practice leader Henry Gilfillan this week. The four scenarios, presented during a webinar on hydrogen, gas and renewables on May 26, included one in which the energy status quo, especially in South Africa, changes little.
May 27, 2021 by

South Africa may need to save indebted State firms, Finance Minister says

South Africa’s cash-strapped State companies may struggle to refinance their debts, requiring the government to provide support, Finance Minister Tito Mboweni said. The ten most-indebted State firms have an estimated R289.9-billion in loans maturing by the end of March 2025, Mboweni said in a written reply to a parliamentary question. Those include power utility Eskom Holdings, which has R401-billion in liabilities and has already received several bail-outs.
May 27, 2021 by

Electricity liberalisation up to 50 MW will support economy, allow more renewables, storage, …

Business organisation the National Employers’ Association of South Africa (Neasa), in its comments on the proposed amendments to Schedule 2 of the Electricity Regulation Act (ERA), called for the liberalisation of electricity generation up to 50 MW. It also called for wheeling and for definitions to be updated to clarify renewable plus storage project limits.
May 26, 2021 by

Following long period of disruption, potential renewables bidders show strong interest in South …

South Africa’s renewable-energy procurement programme, which finally resumed again on April 12 following a seven-year disruption, continues to attract strong interest with some 600 people, including representatives from over 300 registered bidders, participating in a virtual bidders conference on Wednesday convened to focus on the qualifying criteria for participation in the fifth bid window. Besides attracting over 580 South African participants, including representatives from the Department of Mineral Resources and Energy, the National Energy Regulator of South Africa and Eskom, the conference was also attended by delegates from Egypt, India, Germany, France, Italy, Korea, Japan, China, Singapore, Russia, Ireland and Norway.
May 26, 2021 by

Lesotho may see water revenue and undersea cable share seized

Lesotho is facing the loss of revenue from water and power sales to South Africa and may see its share of an undersea communications cable seized after it breached the terms of a contract with Frazer Solar. Under a global enforcement order, following the award of €50-million in damages in an arbitration case in South Africa, Frazer said in a statement Tuesday that it has taken legal action to seize royalties that would be paid to Lesotho’s government by the Trans-Caledon Tunnel Authority, as well as payments for power from Eskom Holdings.
May 26, 2021 by

Western Cape government urges Mantashe to lift embedded generation licence-exemption threshold …

The Western Cape government, through its Finance and Economic Opportunities Minister David Maynier, has submitted comments to the Department of Mineral Resources and Energy (DMRE) to amend Schedule 2 of the Electricity Regulation Act to increase the licence-exemption cap for embedded generation plants.

Currently, the licence-exemption threshold is 1 MW and there have been calls from various industries to lift the threshold to 50 MW.

May 26, 2021 by

‘Ambiguous’ draft Electricity Regulation Act amendment will fail to unlock investment

A regulatory reform exempting small and medium-sized electricity generation projects from the requirement of a National Energy Regulator of South Africa (Nersa) licence is an “obvious and easy way to liberate a huge pipeline of investment that will assist South Africa to have sufficient electricity for its development needs”. However, leading energy commentator Professor Anton Eberhard says the draft amendment to Schedule 2 of the Electricity Regulation Act, published for comment on April 23, will not meet this objective, as the language remains ambiguous, while the licence-exemption threshold is set too low.
May 26, 2021 by

City of Joburg tries to strike balance between revenue, relief in new budget

In its R73.3-billion budget statement for the 2021/22 financial year, the City of Joburg (CoJ) has attempted to strike a balance between the needs of residents and the institution’s ability to provide services, considering continued Covid-19 impacts. The budget comprises of R65.1-billion in operating expenditure and R8.2-billion of capital expenditure. This while the medium-term budget to 2023/24 allows for a R25.5-billion capital expenditure budget.
May 25, 2021 by

Transnet aims to implement three private sector participation projects this year

Freight logistics group Transnet expects to proceed with three private sector participation (PSP) projects before the end of the year, with Public Enterprises Minister Pravin Gordhan confirming that the State-owned group’s new strategy is to drive volume growth “by developing key strategic partnerships in its core segments”. Delivering his Budget Vote address on Tuesday, Gordhan said the transformation and reconfiguration of Transnet was under way to position it to meet the mandate outlined in South Africa’s Economic Reconstruction and Recovery Plan.
May 25, 2021 by

Eskom warns of highly likely nationwide power cuts

South African power utility Eskom said there was a high probability it would have to implement nationwide electricity cuts on Tuesday owing to breakdowns at a number of its generation units. “While no loadshedding is anticipated at this point, Eskom could be forced to implement Stage 1 or, if necessary, Stage 2 load-shedding at short notice should any further breakdowns occur,” Eskom said in a statement.
May 25, 2021 by