Apr 04, 2012
Exxaro-Tata energy venture aims to generate 16 GW of cleaner power by 2025Back
Africa|Botswana|Business|Business Growth|CoAL|Cogeneration|Eskom|Gas|Hydropower|Mining|Namibia|Power|PROJECT|Projects|Renewable Energy|Renewable-Energy|Solar|Technology|Africa|Cogeneration|Energy|Cogeneration|Infrastructure
The company, which is headed by Thomas Garner, has already submitted solar and wind bids for the second bidding round under South Africa's renewable energy independent power producer procurement programme, which closed on March 5. The South African government is currently in the process of procuring 3 725 MW of renewables capacity to be introduced over the coming few years.
Cennergi had five renewables projects at a relatively advanced stage, including the 11 MW Letsatsi solar project, in the Northern Cape, the 30 MW Lephalale solar plant, in Limpopo, the 40 MW Tiqua wind farm, in the Western Cape, and the 95 MW Tsitsikamma and the 139 MW Amakhala Emoyeni wind projects, in the Eastern Cape.
It also claims to have a pipeline of other South and Southern African projects, including hydropower projects in the Eastern Cape and KwaZulu-Natal, which were submitted to the Department of Energy (DoE) in response to its recent request for information (RFI) about potential baseload power projects that could be introduced before 2019.
The DoE reported recently that it had received 60 300 MW of interest in response to the RFI for the development of cogeneration facilities, as well as coal-fired power stations, natural gas facilities and imported hydropower projects.
Depending on the success of its renewables bids, which would offer it certainty as well as visibility on it future project pipeline, Cennergi and its owners would consider taking the company public, probably through a listing on the JSE, as well as a foreign bourse. But that decision was unlikely to be made within the next year.
Through Cennergi, Exxaro and Khopoli Investments, Tata's local investment arm, will study, develop, own, operate, maintain, acquire and manage private electricity generation projects in the three identified Southern African countries.
Garner says the initial focus is on renewables, but it will also pursue coal and gas opportunities, while remaining below a self-imposed emissions target.
Exxaro CEO Sipho Nkosi said its partner, Tata Power, had already demonstrated technology leadership in the Indian power sector, where it had emerged as the country's largest integrated private power group, with 5 300 MW of generation capacity, including renewables capacity, 1.7-million customers and 3 000 km of transmission infrastructure.
Nkosi said it had been a "very tough journey" to facilitate the creation of a renewables business within the coal-heavy mining group and lauded business growth GM Ernst Venter for the role he played in helping to create the new unit.
Tata Power MD Anil Sardana said the Southern African venture was consistent with the global group's strategy of pursuing growth opportunities for energy development in new markets.
Garner said the entity aimed to become a partner with Eskom and to actively contribute towards solving the energy challenges facing South Africa.
Edited by: Creamer Media Reporter
To subscribe email email@example.com or click here
To advertise email firstname.lastname@example.org or click here
Other Electricity News
Significant energy savings can be achieved by replacing existing oversized air compressors with correctly sized units that use power more efficiently, says compressed air products distributor Goscor.
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...