http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.49Change: -0.02
R/$ = 11.88Change: 0.20
Au 1214.08 $/ozChange: 19.92
Pt 1149.50 $/ozChange: 15.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 07, 2012

Greater collaboration urged as SA moves towards multiparticipant power market

Back
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
Africa|Environment|Reinforcing|SECURITY||Africa||Energy|Solutions|Power|
africa-company|environment|reinforcing|security|werksmans-attorneys-company|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-region
© Reuse this



Effective collaboration in the energy and electricity sector, between independent power producers and government, is necessary to overcome hurdles in the sector, says law firm Werksmans Attorneys director Greg Nott.

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)
 
 
 
 
 
 
 
 
Other Electricity News
Power utility Eskom said it would extend power cuts to 2 000 MW of electricity from 12:00 to 22:00 on Friday due to a shortage of generating capacity. The cash-strapped State utility, which has been forced to reduce electricity supply in Africa's most advanced...
Article contains comments
The changing role of the African electricity consumer is held up in a new Deloitte report as a potentially “disruptive” trend for the sub-Saharan African power industry. Africa infrastructure and power leader Shamal Sivasanker argues that consistent growth in region...
More
 
 
Latest News
South Africa’s crude steel production dropped by a sizeable 17.2% year-on-year to an estimated 530 000 t in April, amplifying a global trend that saw world steel production decline by a comparatively marginal 1.7% to 135-million tons in the fourth month of the year....
The Treasure the Karoo Action Group (TKAG) on Friday called on government to delay publishing final regulations and issuing rights for shale gas exploration in the Karoo, until a 24-month strategic environmental assessment (SEA) has been concluded. TKAG CEO Jonathan...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in 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...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
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.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96