There are a number of opportunities for local green entrepreneurs in South Africa and they can play a pivotal role in the country’s economic recovery and just energy transition; however, it is imperative that challenges in the ecosystem be addressed and for support for participants to be bolstered. This was indicated by speakers during economic research institute Trade & Industrial Policy Strategies’ webinar, titled “Unpacking the Green Economy Ecosystem: Business Development Support Services for Local Green Entrepreneurs”, on June 1.
An $8.7-billion power plant in South Africa won’t ever make a profit because of delays, design defects and increasing opposition to coal-fired electricity generation, one of its funders said. Cost overruns at the 4 764 MW Medupi coal-fired plant, owned by Eskom Holdings, along with the even larger Kusile facility are seen as key reasons for the State utility’s R396-billion debt burden. The project will not meet anticipated returns over its life and is unlikely to stay open that long as pressure grows to reduce greenhouse gas emissions, said the African Development Bank (AfDB), which approved a €930-million loan for its construction in 2009.
The Portfolio Committee on Mineral Resources and Energy, on May 31, unanimously voted to adopt the amended African Regional Cooperative Agreement for Research (AFRA) as presented by the Department of Mineral Resources and Energy (DMRE). Although South Africa has been signatory to the AFRA since its inception in 1990, the agreement has been amended to include two aspects, including that it remain in force indefinitely and to make provision for withdrawal. AFRA seeks to promote cooperation in the …
Karpowership, the world’s biggest supplier of floating gas-fired power plants, said some South African government agencies have stalled its projects and their conduct isn’t conducive to creating an attractive investment environment. The Turkish company in March last year won the right to supply South Africa with 1,220 megawatts of electricity, or more than 60% of a so-called emergency tender designed to ease intermittent power outages. The 20-year deal was valued at 218 billion rand ($14 billion) at the time.
Eskom has announced that Kusile Unit 4, in eMalahleni, Mpumalanga, has entered into commercial operation, adding some 800 MW of much-needed generation capacity to South Africa’s load-shedding-prone electricity system. The unit is the fourth of six units to enter commercial operation at the much-delayed 4 800-MW project, where design defects have also negatively affected the performance of the units that have been connected previously.
A planned new generation of small nuclear reactors will create more waste than conventional reactors, while treatments to make some types of waste safe could be exploited by militants trying to obtain fissile materials, a study published on Tuesday said. The projects, called small modular reactors (SMR), are designed to be simpler and safer than conventional plants in the case of accident. They are also expected to be built in factories as opposed to today’s massive light-water reactors that are built on site and typically run billions of dollars over budget.
The preferred bidder for a gigawatt-scale green hydrogen-to-ammonia project near the coastal town of Lüderitz, in Namibia, is aiming to conclude an implementation agreement with government by August, opening the way for a full-scale feasibility study to enable the implementation of the $10-billion project. Following a competitive bidding process, the Namibian government announced the selection of Hyphen Hydrogen Energy as the preferred bidder for the country’s first green hydrogen project in November 2021.
Power purchase agreements (PPAs) arising from the much-delayed Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) will be signed on June 2, the Department of Mineral Resources and Energy revealed on Tuesday. The DMRE did not indicated whether all 11 projects would be signed, saying only that the signing ceremony would be held in Centurion and would be presided over by Mineral resources and Energy Minister Gwede Mantashe.
The South African government has announced a two-month extension to the temporary reduction in the general fuel levy, but has warned that the R4.5-billion in foregone revenue will have an impact on the fiscal framework. In a joint statement Minister Enoch Godongwana and Gwede Mantashe announced that Godongwana had submitted a letter to the Speaker of the National Assembly, requesting the tabling of a two-month proposal for the extension of the reduction in the general fuel levy.
South Africa is well-positioned for effective renewable energy generation, as abundant sun and wind resources, combined with the quick turnaround of establishing renewables-based projects, make for the most effective and sustainable solutions to the energy risks South Africa faces, says renewable energy company Scatec sub-Saharan Africa GM Jan Fourie. Recent developments in technology and innovation in the renewable energy sector have led to the viability of on-demand power generation at a stable cost over the long term, making it a safer and more cost-effective solution for the country, he notes.
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