Power failures have become routine in South Africa. At the same time, the country wants to wean itself off the coal that generates more than 80% of its electricity and makes it the world’s twelfth‑biggest source of greenhouse gases. Most of South Africa’s power stations are near the end of their lives. An average of about 1 000 MW of capacity is set to be decommissioned annually over the next decade, which presents an ideal opportunity to begin overhauling the energy system. The question is how.
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The deadline for projects selected as preferred bids under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) to reach commercial close has been extended to September 30, from an initial deadline of the end of July. However, the Department of Mineral Resources and Energy (DMRE) insists that the decision will not delay its other procurement programmes, which are either under way or scheduled for launch later this year.
A continuing decline in the performance of the Eskom coal fleet drove yet another “intensive” period of load-shedding in South Africa during the first six months of 2021, when rotational power cuts were implemented for 650 hours, or 15% of the time. A new Council for Scientific and Industrial Research (CSIR) Energy Centre analysis shows the average energy availability factor (EAF) of the coal fleet slumped to 61.3% during the period, materially below the 65% average EAF reported in 2020, as well as the 66.9% of 2019 and the 71.9% of 2018.
The last of six power generation units at the Medupi power station, in Lephalale, is now operational, marking the completion of all building activities on the 4.7 GW project.
Construction at Medupi started in May 2007 and the power station has an operational life of 50 years.
Africa-focused energy company Kibo Energy has satisfied all conditions required, and completed an agreement with South Africa-based Industrial Green Energy Solutions (IGES), to jointly develop a portfolio of waste-to-energy projects in South Africa.
The companies entered into an agreement to jointly develop a portfolio of waste-to-energy projects in South Africa, with an initial target of generating more than 50 MW of electricity for sale to industrial users.
President Cyril Ramaphosa says it is time for South Africa to “grasp the nettle” and embark on a “transformative path” towards a climate-resilient society both to fulfil its moral obligations in the face of an intensifying crisis, but also to seize the economic and job opportunities that are arising around the transition. Speaking during the third formal meeting of the Presidential Climate Commission (PCC), which he established in December 2020 and chairs, Ramaphosa said that, given the primacy of the climate crisis on the international agenda, South Africa could no longer be debating whether or not it should transition to a low-emissions society.
Nedbank clients have the option to finance the installation of solar photovoltaic (PV) systems for their homes through their Nedbank home loan, the bank’s research, insights, retail and business banking executive Bruno Ching’andu has said. In a South African Photovoltaic Industry Association-hosted webinar this week, Ching’andu encouraged consumers to consider this option, as it could become more affordable to pay off the home loan repayment installment than to foot an ever-increasing electricity bill from the municipality or Eskom.
New funding model ideas for distributed generation projects will evolve as the market expands, but Rand Merchant Bank (RMB) business development head Hugh Howarden has stressed the importance of government clarifying the requirements for the development and registration of such projects. President Cyril Ramaphosa in June announced that the licensing-exemption threshold for distribution generation projects would increase to 100 MW and that the new requirements for such projects would be gazette within 60 days.
Deputy chair of South Africa’s Presidential Climate Commission (PCC) Valli Moosa has presented an upbeat assessment of the country’s ability to position itself as a preferred global destination for foreign and domestic decarbonisation investment. Speaking during a hydrogen-focused webinar on Thursday, Moosa warned that South Africa’s prevailing high carbon intensity had the potential to undermine its long-term competitiveness as countries and companies became increasingly climate-conscious and sought to restrict trade in carbon-heavy products.
Energy equipment and solutions provider Conco Energy Solutions has been acquired by wholly black-owned DLO Resources Group, which is headed up by 51% shareholder, founder and CEO Linda Mabhena-Olagunju. DLO is a renewable energy developer and strategic investor.
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