http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 07, 2012

Greater collaboration urged as SA moves towards multiparticipant power market

Back
SECURITY|Africa|Environment|Security|Werksmans Attorneys|Africa|South Africa|Security|Electricity Sector|Energy|Internet Solutions Internetix Conference|Multiplayer Electricity Industry|Power Producers|Security|Solutions|Greg Nott|Happy Masondo|James Surowiecki|Power|Security|Reinforcing|South East Asia
SECURITY|Africa|Environment|Security||Africa||Security|Energy|Security|Solutions|Power|Security|Reinforcing|
security|africa-company|environment|security-company|werksmans-attorneys-company|africa|south-africa|security-facility|electricity-sector|energy|internet-solutions-internetix-conference|multiplayer-electricity-industry|power-producers|security-industry-term|solutions|greg-nott|happy-masondo|james-surowiecki|power|security-person|reinforcing|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
Updated 7 hours ago South Africa’s financial institutions have been instrumental in funding the bulk of the projects under the Department of Energy’s multibillion-rand Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), delegates heard at the Solar Indaba, in...
Rosatom logo
Updated 7 hours ago The Department of Energy (DoE) reported on Thursday night that it had concluded its first “nuclear vendor parade workshop” with a delegation from the Russian Federation and that further meetings were planned with vendor countries such as France, China, South Korea,...
Cash-hungry solar photovoltaic (PV) projects in sub-Saharan Africa are largely assessed by lenders on a case-by-case technical basis and, while some standard technical and nontechnical aspects would be required to reach financial close, these are not entirely...
More
 
 
Latest News
Updated 1 hour 45 minutes ago Swedish Ambassador to South Africa Christian Meuwly will next week inaugurate the final roll-out of the new vertical shaft brick kiln (VSBK) at clay brick manufacturer Langkloof Bricks’ facility in Jeffrey’s Bay. The VSBK formed a part of economic, social and...
Updated 2 hours 4 minutes ago Hot on the heels of the launch of Rustenburg’s rapid transport system’s brand name and logo last week, a negotiation framework agreement (NFA) has been formally agreed to and signed by the Rustenburg Local Municipality (RLM) and taxi and bus operators affected by the...
Updated 2 hours 5 minutes ago The runway at the George Airport, in the Western Cape, has been rehabilitated to improve safety, in terms of run-off and storm water drainage, and the structural capacity of the pavement surface. The scope of work comprised the extension of Runway 11/29, the...
More
 
 
Recent Research Reports
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.
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.
 
 
 
 
 
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
MORNÉ DU PLESSIS Increased urgency and burgeoning awareness of the importance of these issues are beginning to change political risks and, thus, State responses to environmental concerns
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...
 
 
 
 
 
 
 
 
 
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