Sep 07, 2012
Greater collaboration urged as SA moves towards multiparticipant power marketBack
Africa|Environment|Reinforcing|SECURITY|Werksmans Attorneys|Africa|South Africa|Electricity Sector|Energy|Internet Solutions Internetix Conference|Multiplayer Electricity Industry|Power Producers|Solutions|Greg Nott|Happy Masondo|James Surowiecki|Power|South East Asia
© Reuse this
The current transition to a multiplayer electricity industry, which can cause frustrations, also means that the South African industry can avoid the problems faced by independent power producers in South-East Asia during the 1990s, where a financial crisis and, in some instances, a lack of prudent technical assessments led to serious problems.
The risk of instability and market collapse can be tempered by careful development of an independent power production industry, which does take time, he says.
However, effective collaboration is an arduous task because it entails detailed debate and compromise, but leads to superior decisions, said newspaper New Yorker journalist and author James Surowiecki, who spoke at the Internet Solutions Internetix conference in August.
Using Bayesian probability mathematics, which gives the probability of an effective solution to a problem, given limited and unverified information, such as those encountered daily in business meetings where effective decisions must be taken using limited information, Surowiecki noted that diversity in groups and teams effectively countered the effects of incomplete information on decisions.
Diversity in teams means that a broader problem space is explored, compared with mutual reinforcing that occurs between like-minded people that can amplify incorrect assumptions and, hence, decisions, he explained.
“Working in diverse teams is not easy. We like to work with people whom we agree with and we must work hard as part of a diverse team. Working in diverse teams can also be uncomfortable and frustrating; the best decisions, however, do not arise from easy consensus, but rather from conflict, disagreement and compromise. An effective decision must balance the diverging views of a diverse team and effectively integrate different viewpoints in order to determine the best course of action.”
It falls to the industry to form a more coherent view with which to approach government and to support government in growing an independent power industry rather than advocating competing market views, which can make government policymaking uncertain, says Nott.
“If we analyse the prospects of an independent power producer in South Africa based on the existing legislation and policy environment, then the prospects are good. However, in light of the recent delay of financial closure for initial independent power production bidders and with no date given for financial closure of these bids, the implementation of policy by government remains in question, increasing risks and financial costs,” says Werksmans Attorneys director Happy Masondo.
“To ensure security of supply, South Africa needs independent power producers and alternative sources of energy,” she concludes.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Creamer Media Senior Deputy Editor
Other Electricity News
While there are battery-powered bolting solutions for wind turbine maintenance, the general consensus among wind energy industry stakeholders is that these solutions lack battery longevity and often succumb to overheating and bending, says bolting systems...
While wind turbines are standard products that are designed, verified by prototype testing and independently certified, their foundations are designed on a project-by-project basis to suit site-specific ground conditions. This, according to engineering consulting...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...