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)
Other Electricity News
Article contains comments
Article contains comments
Updated 6 minutes ago South Africa's greenhouse-gas (GHG) emissions continue to rise, but are on track to meet targets the country agreed to at the UN climate change conference in Copenhagen five years ago, government said on Tuesday. Responding to a question at a briefing in Pretoria,...
Updated 23 minutes ago The Development Bank of Southern Africa (DBSA) and the University of Venda, have signed a R300-million loan agreement for the construction of on-campus student accommodation at the university’s Thohoyandou campus, in Limpopo. With an estimated cost of R448-million,...
Updated 2 hours 13 minutes ago The Independent Communications Authority of South Africa (Icasa) has called on interested parties to lodge written representations in relation to Vodacom’s proposed R7-billion buy-out of converged communications network operator Neotel within 21 days. Icasa outlined...
Recent Research Reports
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.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...