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AfDB provides $140m loan for Tanzania hydropower project

Finance institution the African Development Bank Group and the government of Tanzania have signed loan agreements totalling $140-million to finance the construction of the 50 MW Malagarasi hydropower plant in Western Tanzania. The agreements cover a $120-million sovereign loan from the bank and $20-million from the Africa Growing Together Fund (AGTF), which is administered by the bank.
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UK researchers announce major advance in developing practical nuclear fusion reactors

The UK Atomic Energy Authority (UKAEA) has announced the successful testing of a new concept on its MAST Upgrade experiment, which could remove one of the major problems in the development of nuclear fusion energy. Currently, the world derives nuclear power from fission, which involves, to simplify, the ‘splitting’ of atoms. Fusion would generate nuclear power by smashing atoms together (which is what happens in stars and which gives them their energy). A major problem is the removal of …
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South Africa’s about-turn on solar panels raises industry ire

South Africa’s plans to buy emergency power, already the subject of a court challenge, face fresh controversy after a local-content requirement for solar-panel frames was scrapped subsequent to the award of the tenders. The 65% local-content requirement on aluminium frames for photovoltaic panels was waived by South Africa’s Department of Trade, Industry and Competition on May 12. That followed an application by ARTsolar, which along with a local unit of China’s Seraphim Solar will be the only beneficiaries of the exemption.
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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.
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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.
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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.
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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.
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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.
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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.

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‘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.
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