Jul 23, 2010
6 000 MW of wind power ‘ready to be commissioned’ – SaweaBack
Africa|CoAL|Eskom|Industrial|Mining|Nuclear|PROJECT|Renewable Energy|SECURITY|Sustainable|Africa|Energy|Maintenance|Nuclear|Wind Energy|Power
© Reuse this
Developers were, however, waiting for the power purchase agreements (PPAs) under the renewable energy feed-in tariff (Refit), as they could not take a project to a bankable stage unless they had a power offtake agreement in place.
However, Standard Bank director of investment banking coverage for South Africa and Africa, Paul Eardley-Taylor said that a number of entities (such as industrial and mining companies) could be interested in signing PPAs with renewable power producers, outside of the Refit programme, if one considered increasing electricity price forecasts for 2015.
As South Africa awaited the draft of the integrated resource plan 2010, or IRP2010, which was initially expected by the end of June, interests promoting different forms of energy generation stated what they hoped to see from the document.
Representing Sawea, Mark Tanton purported that the country should aim to derive 25% of its total electricity generation mix from wind energy by 2025. That would amount to about 30 000 MW of installed wind capacity.
Tanton said that this figure would in turn mean the creation of an additional 40 000 jobs, 12 000 of which would be permanent jobs in rural areas.
He also noted that some 60% of the wind turbine could be manufactured locally, and would thus contribute significantly to industrial development.
Tanton emphasised that Sawea wanted the IRP2010 to be a "risk-adjusted" plan, which looked at the "true cost" of producing power from all the technologies proposed, and ensured a portfolio mix that was complementary, affordable and sustainable in the long-term.
And importantly, clarity and limited ambiguity were expected from the IRP2010.
Representing the Nuclear Industry Association of South Africa, Ayanda Myoli stated that South Africa had the opportunity to be a "big player" in the nuclear industry, and if a nuclear build programme of 20 000 MW was initiated, some 77 000 jobs could be created in the country. Of these jobs, some 50 000 would be permanent jobs, not only in operation and maintenance of nuclear power plants, but also in downstream supplier industries.
The country's nuclear policy was said to support the local beneficiation of uranium, for example.
Myoli also said that localisation, and development of high-end skills was high on the agenda.
Eskom representative Adele Greyling stressed that Eskom wanted the IRP2010 to address the issue of security of supply, as well as for the document to make provision for the entrance of independent power producers (IPPs) into the market, and to also ensure a more diverse energy mix.
She said that Eskom was ready, willing and able to facilitate the process of IPPs entering the market in South Africa, but emphasised that the process was not up to the utility alone.
Greyling added that Eskom felt that it would be practically possible for renewable energy to contribute 20% to the entire energy generation mix by 2030.
Independent industry commentator Chris Yelland said that it was of utmost importance that the drafting of the IRP2010 should follow due process.
Yelland was concerned that the IRP2010 was not being drawn up by independent consultants, which were free of vested interests, and was rather being driven by stakeholders - which were largely dominated by Eskom and the Energy Intensive Users Group, as they had the finances to be most involved with the process.
He highlighted that it would be difficult to accept the outcome if one did not accept the process.
IRP2010, spearheaded by the Department of Energy, would determine current and future energy requirements for South Africa for the next 20 years.
Energy Minister Dipuo Peters said previously that the country has reached a "delicate situation, which requires us to take bold and decisive decisions on whether to build coal-fired or nuclear power stations for baseload energy requirements".
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Electricity News
Power utility Eskom has implemented regular power cuts this year to prevent the national grid being overwhelmed, as South Africa faces its worst energy crisis in decades, Public Enterprise Minister Lynne Brown said earlier this week, adding that power outages cost...
Recent Research Reports
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...