Apr 05, 2012
Exxaro pursuing coal-fired project independently of CennergiBack
Natal|Africa|Business Growth|CoAL|Cogeneration|Environment|Eskom|Exxaro|Grootegeluk|Hydropower|PROJECT|Projects|Renewable Energy|Renewable-Energy|System|Africa|Botswana|Namibia|South Africa|Grootegeluk Mine|Cogeneration|Energy|Mining|Power|Power Producer|Renewable Energy Capacity|Transmission Network|Eastern Cape|Cogeneration|Dipuo Peters|Ernst Venter|Power|Thomas Garner|Eastern Cape|KwaZulu-Natal|Limpopo
© Reuse this
In fact, Exxaro executive GM business growth Ernst Venter has revealed that the project was submitted in response to a recent request for information (RFI) issued by the Department of Energy (DoE) and the National Treasury.
Energy Minister Dipuo Peters has reported that government received project information representing a combined 60 300 MW of potential cogeneration, coal-fired, gas-fired, hydropower and import power options that could be introduced to the domestic grid by March 2019.
The plant could source its primary energy from the JSE-listed group’s proposed greenfield Thabametsi coal mine, adjacent to its giant Grootegeluk mine, in the Waterberg region of the Limpopo province, and could produce 1 200 MW.
Venter reveals it has received strong interest from potential IPP operators, as well as from offtakers keen to shore up their supply in light of South Africa’s current supply-side constraints.
It has also held extensive discussions with State-owned power group Eskom on ‘wheeling’ that power through the utility’s transmission network to its customers.
The project initially emerged when Eskom issued its own RFI for baseload IPP projects. But that initiative was abandoned, owing to policy, regulatory and funding obstacles.
Exxaro believes the new government RFI to be indicative of an increasing seriousness about adding baseload IPP capacity, along with the 3 725 MW of renewable energy capacity currently being procured.
However, Venter acknowledges that several regulatory and policy impediments remain and will have to be ironed out ahead of any possible procurement phase.
“A lot of progress has been made in these areas over the last year . . . and Eskom is collaborating to help create the right environment for IPPs to hook on to the line.”
That said, Venter still believes the creation of an independent market and system operator will be key over the longer term to levelling the playing fields between Eskom and potential private operators.
Exxaro is not the only mining company considering coal-fired power options, with both Anglo American and Xstrata pursuing discard-coal IPP projects.
Meanwhile, the group’s Cennergi JV with Tata Power has also submitted baseload projects in response to government’s RFI. They related to potential hydropower developments in the KwaZulu-Natal and Eastern Cape provinces.
CEO Thomas Garner stresses that the new entity will not only pursue renewable energy projects, but will also seek to develop, or acquire, coal and gas assets in South Africa, Namibia and Botswana.
However, its initial focus is the renewable energy IPP procurement programme and Garner confirms that wind and solar bids have been submitted for the second tender window, which closed on March 5. An announcement on the second group of preferred bidders is expected on May 14.
Cennergi has 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. However, Garner says he is unable to disclose which of the projects were tendered to the DoE and the National Treasury.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Electricity News
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
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.