Apr 05, 2012
Exxaro pursuing coal-fired project independently of CennergiBack
Natal|Africa|Business Growth|CoAL|Cogeneration|Environment|Eskom|Exxaro|Grootegeluk|Hydropower|Mining|PROJECT|Projects|Renewable Energy|Renewable-Energy|System|Africa|Botswana|Namibia|South Africa|Grootegeluk Mine|Cogeneration|Energy|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
Power utility Eskom has implemented regular power cuts this year to prevent the national grid being overwhelmed, as South Africa faces its worst energy crisis in decades, Public Enterprise Minister Lynne Brown said earlier this week, adding that power outages cost...
Recent Research Reports
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.
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...
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...