Renewable energy developers are cautiously optimistic about the announcements made by the South African government that Bid Window 5 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) is going ahead, but the documents specifying requirements are still not available, says energy, mining, public and private consultancy Economic Development Solutions (EDS) MD Janine Espin. The Department of Mineral Resources and Energy last week said it would hold a virtual bidders conference in April to share the relevant information and qualifying criteria with those interested in participating in Bid Window 5.
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A new independent power utility has been established in South Africa to sell electricity directly to private and municipal customers rather than to Eskom. Branded Earth & Wire, the company aims to build a large-scale portfolio of renewable-energy assets and enter into power purchase agreements (PPAs) with its own customers.
Denmark-based wind energy equipment multinational Vestas is optimistic about renewable energy, and specifically onshore wind energy, opportunities in South Africa and more broadly in Africa. “We are also evaluating the potential of South Africa to act as a possible industrial hub towards the Southern and Eastern African markets. The African Continental Free Trade Area, which came into effect in January, presents interesting opportunities, especially for South Africa to view the renewable energy industry and the relevance of support for it through a new lens,” says Vestas South Africa MD Louise Paulsen.
With 86% of the country’s electricity produced from coal, South Africa continued to have the highest reliance on the energy mineral among all G20 countries in 2020, with the global average standing at 34%. The ‘Global Electricity Review 2021’, published on March 29, indicates that the G20 country with the second highest coal dependency is India, which generates 71% of its electricity from coal.
South Africa’s Mineral Resources and Energy Minister, Gwede Mantashe, will co-chair a high-level Ministerial panel this week on ‘Ensuring People-Centred Transitions’ as part of a global ‘Net Zero Summit’ being hosted jointly by International Energy Agency (IEA) executive director Fatih Birol and COP26 President Alok Sharma. The panel is one of five to be convened as part of the virtual summit, which will take place on March 31 and will be livestreamed globally.
Working in collaboration with conservation organisations, BioTherm Energy’s Excelsior wind energy facility, in the Western Cape, is pioneering the wind industry’s approach to conserving avifauna.
The programmes that are being implemented go beyond looking at the potential impact of the wind farm on birds through mitigation, but are also aimed at a net gain in priority species, including Cape Vulture, Black Harrier, Verreaux’s Eagle and Martial Eagle.
Fair Cape Dairies has installed a 560 kW solar power plant at its operations, allowing it to produce fresh milk off grid during daylight hours. This facility will generate about one-million kilowatt-hours of energy and will save about 400 000 kg of carbon dioxide a year.
If it wants the legal right to keep the Koeberg nuclear power station running, Eskom will have to convince nuclear regulators – and, perhaps, the courts – that it has the money to do so. Under rules published by minerals and energy minister Gwede Mantashe Friday, anyone who wants to keep an old nuclear generator going is required to “demonstrate availability of financial and human resources” for as long as the extension applied for.
Karpowership, a unit of the Turkish Karadeniz Energy Group, is on track for its longest contract to date to supply power from vessels to South Africa in a deal worth as much as R218-billion ($15-billion). The company that advertises a “fast, flexible, reliable” solution of floating electricity generation was named last week as a preferred bidder for three projects fueled by liquefied natural gas to provide 1 220 MW of electricity. The program is aimed at closing a supply gap in South Africa that’s resulting in periodic blackouts.
Big business in South Africa plans to approach government with a series of solutions aimed at narrowing the ever-widening gap between the country’s fixed-investment spending targets and the dismal reality of declining spending on both social and economic infrastructure. Through the National Development Plan, South Africa has set an official goal of increasing gross fixed capital formation to 30% of gross domestic product (GDP) with the aim of using such spending to create the platform for economic growth and improved service delivery.
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