Aug 16, 2012
DoE to begin closing first renewables projects, but hints to extension beyond AugBack
Construction|Johannesburg|Eskom|Projects|Renewable Energy|Renewable-Energy|Energy|Renewable Energy Capacity|Dipuo Peters|Nelisiwe Magubane|Power
© Reuse this
The signing, which was initially scheduled for mid-June, would open the way for the construction of projects representing a collective investment value of around R46-billion and a collective capacity of 1 415 MW. Under the REIPPP, the DoE was seeking to procure 3 725 MW of renewable energy capacity for delivery between 2014 and 2016.
However, the director-general Nelisiwe Magubane also indicated at a bidders' conference in Johannesburg that the DoE would be sending requests to bidders for an extension of the bidding period beyond the August 31, 2012 bid validation period – effectively cautioning the financial-close period could well extend beyond that date.
She indicated that the delay had related primarily to internal authorisation processes within government, including the firming up of government guarantees for Eskom, which would be the buyer of the power over a 20-year horizon. She said the readiness of bidders to close would only become apparent once it moved towards actual signing.
It is understood that agreements involved copious amounts of information and were complicated further by the fact that bidders would be approaching financiers to align hedging arrangements with the actual financial-close date. Therefore, those close to the process warned that it was unlikely that all 28 projects would be cleared by the end of August.
Energy Minister Dipuo Peters said the process had been ground breaking, but that every effort was being made to advance the window-one projects towards closure.
It was also indicated that the bid closure date for the third window had been maintained as October 1, 2012, and that the financial closure deadline of December had been sustained for the 19 window-two bidders, which were named earlier this year.
Peters also announced that she would be issuing a further declaration “soon”, extending the amount of capacity to be procured beyond the 3 725 MW already in process.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
International consulting engineering company Royal HaskoningDHV (RHDHV) has appointed Salani Sithole as South African MD, effective March 1. Sithole has been with the company for six years and, prior to joining RHDHV, held various positions in engineering consulting,...
Recent Research Reports
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...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
This Week's Magazine
National flag carrier South African Airways (SAA) is in an advanced stage of renegotiating its deal with European airliner manufacturer Airbus to acquire A320 single-aisle (or narrow body) aircraft. The aim is to replace ten of the aircraft still on order with five...
Worldwide, the main thrust in the ports industry over the past decade or more has been to increase efficiency. Traditionally, ports have been run by engineers and mariners and, in the past, increasing a port’s capacity was achieved by expanding the harbour. “That has...
What do you do when an elephant has a toothache? You call Dr Gerhard Steenkamp from the University of Pretoria’s (UP’s) faculty of veterinary science, Onderstepoort, one of only two elephant ‘dentists’ in the world.
The 2015 Sanlam/Business Partners Entrepreneur of the Year (EOY) competition was launched earlier this month in Johannesburg, with the main focus on creating and inspiring entrepreneurs to create jobs and boost the economy.
In a recent letter to the editor that I sent to Engineering News (Concerns regarding South African portion of Square Kilometre Array) and in a follow-up article elaborating further (We must start preparations to build our own synchrotron light source), I stated my...