Entries by

Project achieves financial close

Independent power producer EDF Renewables achieved commercial and financial close on its Umoyilanga project on November 28, 2023, reaching commercial close with the Department of Mineral Resources and Energy (DMRE), and then concluding financial close with financial institutions Nedbank, RMB and the Development Bank of Southern Africa. This was consequent to its attaining legal close on August 30, 2023, with the signing of the power purchase agreement (PPA) with State-owned power utility Eskom, and the implementation agreement (IA) with the DMRE, for the hybrid renewable-power facility to be built in South Africa.
December 15, 2023 by

Energy company driving global move to renewables

In South Africa, global renewable-power producer Scatec has initiated numerous projects under the Renewable Energy Independent Power Producer Procurement Programme contributing towards a more sustainable energy grid. The company says that as a major player in the renewables space, its role extends beyond simply providing renewable-energy solutions.
December 15, 2023 by

Nedbank, Norfund to lend Pele Green R2.5bn for renewable power plants

Pele Green Energy has secured R2.5-billion in funding from lenders including Nedbank Group to help it build renewable power plants including one ordered by Anglo American Platinum. The other creditors include Norfund and the Industrial Development Corporation (IDC), development finance institutions owned by the governments of Norway and South Africa respectively, said Gqi Raoleka, Pele’s MD. Nedbank will provide R1-billion, the IDC R829-million and Norfund R658-million.
December 14, 2023 by

South Africa moves to procure 5GW of renewables, 2GW of gas-to-power, 615 MW of battery storage

The South African government has released three requests for proposals (RFPs) for new electricity generation and storage capacity, including 5 000 MW of new wind and solar, 2 000 MW of gas-to-power and 615 MW/2 460 MWh of battery storage. Under the much anticipated and delayed seventh bid window (BW7) of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), the Department of Mineral Resources and Energy (DMRE) is seeking bids by April 30 for the development of 3 200 MW of wind and 1 800 MW of solar photovoltaic (PV).
December 14, 2023 by

South Africa launches renewables procurement round for 5 000 MW of wind and solar

The Department of Mineral Resources and Energy (DMRE) has released the much-anticipated and delayed seventh bid window (BW7) of Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), through which it will be seeking bids for the development of 3 200 MW of wind and 1 800 MW of solar photovoltaic (PV). In a statement, the department notes that BW7 was the first bidding round launched in line with the Ministerial Determination published by Mineral Resources and Energy Minister Gwede Mantashe in December 2022. The determination outlined an intention to procure 14 771 MW of new generation and storage capacity, including 3 940 MW of solar PV, 9 600 MW of wind and 1 231 MW of battery energy storage.
December 14, 2023 by

Release by Scatec secures $100m loan, guarantee from the IFC

Modular solar photovoltaic and battery energy storage offering Release by Scatec has signed a $100-million loan agreement with the International Finance Corporation (IFC), as part of a larger partnership to provide a simpler, more affordable, and cleaner offering of power to African utilities. The loan also includes a $65-million guarantee facility to support the payment obligations of Release’s customers. 
December 14, 2023 by

Eskom set for seventh full-year loss as power cuts grip South Africa

South Africa’s Eskom Holdings is on track to post its seventh consecutive full-year loss as the utility crumbles under the weight of its debt pile and high financing costs, poor plant performance and a ballooning municipality arrears book. The state-owned electricity provider posted a 1.62 billion-rand ($85 million) interim profit in the period through Sept. 30, from a prior 3.8 billion-rand profit a year earlier, the company said in a statement posted on its website on Wednesday.
December 14, 2023 by

Outa questions Gazprombank, nuclear procurement announcements

This week’s announcements of government’s plan to pursue the procurement process for 2 500 MW of new nuclear capacity, along with Cabinet’s decision to endorse a R3.7-billion investment deal between PetroSA and Gazprombank to resuscitate the gas-to-liquids refinery in Mossel Bay, “appear to have been taken in haste and lack sufficient transparency, clarity and rationality”, the Organisation Undoing Tax Abuse (Outa) says in a statement. “Both deals smack of a government that is desperate to secure dubious contracts ahead of the 2024 elections, since there is a strong possibility that those currently in positions of power may no longer be around to approve deals of this nature,” posits Outa CEO Wayne Duvenage.
December 13, 2023 by

Consortium appointed to develop Mozambique hydropower project

A consortium comprising of energy companies EDF, TotalEnergies and Sumitomo Corporation, has been selected as the strategic partner by the government of Mozambique and has entered into a joint development agreement (JDA) for the development of the Mphanda Nkuwa hydropower project (MNK). The MNK is a proposed 1 500 MW run-of-river hydropower project to be located on the Zambezi river, 60 km downstream from Cahora Bassa and 60 km from Tete City.
December 13, 2023 by

Powerline industry warns it may not survive until grid roll-out ‘feast’ given current …

The Power Operations & Leadership Association of Southern Africa (Polasa) believes the famine-then-feast profile of Eskom’s execution plan for the roll-out of new transmission infrastructure will starve an already embattled domestic industry to the point where it will be unable to make the manufacturing and skills investments required to participate in the later steep rise in grid expenditure. Chairperson Sagren Moodley tells Engineering News that the back-end-loaded nature of the execution plan for the ten-year Transmission Development Plan (TDP) to 2032 is of “great concern” to the industry as only 12% of the 14 218 km of powerlines proposed for construction under the plan has been earmarked for implementation during the first five-year window.
December 13, 2023 by