Jul 23, 2010
6 000 MW of wind power ‘ready to be commissioned’ – SaweaBack
Eskom|Renewable Energy|Standard Bank|Africa|South Africa|Electricity Generation Mix|Electricity Price Forecasts|Energy Generation|Industrial And Mining|Investment Banking Coverage|Renewable Energy Feed-in Tariff|Renewable Power Producers|Wind Energy|Wind Energy Project Developers|Adele Greyling|Ayanda Myoli|Chris Yelland|Dipuo Peters|Eskom|Mark Tanton|Paul Eardley-Taylor
© 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
Other Electricity News
The use of biofuels, as a renewable-energy source, presents the potential for numerous environmental, energy security and efficiency benefits to the South African economy, says law firm ENSafrica senior associate environmental law division senior associate Andrew...
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...