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Thursday, May 21, 2009.

From Creamer Media in Johannesburg, I'm Shannon O'Donnell.

Making headlines today:

On Wednesday, the newly-established Department of Energy announced its short- to medium-term priorities for the sector.

The new department was formed when President Jacob Zuma split the Minerals and Energy department into two portfolios. It will focus on issues such as renewable energy, energy efficiency and new generation capacity. It also announced that it planned to launch a green jobs initiative.

Department of Energy spokesperson Bheki Khumalo said that the ministerie's first priority was the universal access to energy. Khumalo said that government would particularly concentrate on supplying electricity to poor communities.

The second priority would be to diversify the country's energy mix away from fossil fuels and particularly focus on the development of renewable energy.

South Africa has huge, untapped potential in renewable energy generation including solar, wind, and small-hydro.

Zimbabwe plans to use tax holidays and other incentives to court foreign investors in its energy sector, which has experienced severe shortages.

Zimbabwe's unity government of President Robert Mugabe and rival Morgan Tsvangirai are keen to get more investment into the country, where its energy sector has fallen in disarray following years of economic decline.

The country produces 1 000 MW of electricity while its peak demand is about 2 200 MW, forcing it to import from neighbours.

Energy minister Elias Mudzuri said the country also had an exemption for payment of holding taxes and guaranteed dividend payments and repatriation.

Mudzuri said the tax holidays weren't open-ended and could be short-term only.

Also making headlines:

Ghana pushes ahead with its power projects despite the economic crisis.
Sasol expects civil claims after acknowledging fertiliser abuse.
Global steel output fell by 23,6% in April.
And, sufficient road capacity essential for economic growth

That's a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.