http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.16Change: -0.24
R/$ = 11.76Change: -0.22
Au 1208.38 $/ozChange: -9.12
Pt 1191.00 $/ozChange: 0.50
 
 
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  
 
 
Oct 22, 2012

Financial closure on renewable projects needed to maintain investor confidence – SAWEA

Back
Cape Town|Environment|PROJECT|Projects|Renewable Energy|Renewable-Energy|Windaba|Electricity Generation Capacity|Energy|Manufacturing|Prospective Independent Power Producers|Wind Energy|Wind Energy Sector|Jasandra Nyker|Johan Van Den Berg|Power
|Environment|PROJECT|Projects|Renewable Energy|Renewable-Energy|Windaba|Energy|Manufacturing|Wind Energy||Power
cape-town|environment|project|projects|renewable-energy|renewable-energy-company|windaba|electricity-generation-capacity|energy|manufacturing|prospective-independent-power-producers|wind-energy|wind-energy-sector|jasandra-nyker|johan-van-den-berg|power
© Reuse this



The second Windaba conference, organised jointly by the South African Wind Energy Association (SAWEA) and the Global Wind Energy Council, was being held in Cape Town this week at a time when many prospective independent power producers were awaiting news of the impending financial closure for round one of the Renewable Energy Independent Power Producer Programme (REIPPP). 

“The programme is nothing short of impressive. But to really show that this programme works and to maintain investor confidence, financial close needs to occur to acquire confirmation that we indeed have a wind industry,” SAWEA chairperson Jasandra Nyker said during the opening session of the conference.

Reflecting on the past year in the South African wind energy sector, Nyker was positive about the progress the industry had made with eight wind projects having been selected out of the total of 28 projects under round one of the REIPPP, totalling 634 MW, and another seven wind projects being successful in round two, accounting for 563 MW. “For any first-time industry that is an impressive accomplishment and we should not blindly cast that achievement aside,” she said.

However, as with any new programme there was always room for improvement, said Nyker, adding that government had to engage further with industry to ensure that the “very expensive learnings of round one” were taken into consideration as the REIPPP moved into future rounds. “Ask any round-one developer, the process to financial close has to be done in a more cost-effective manner going forward,” she asserted.

Nyker added that the wind industry welcomed the government’s announcement that there would be further allocation of future electricity generation capacity for renewable energy. “The 1 470 MW allocated to wind energy ensures that wind will become the dominant player in the renewable-energy mix in the years to come.”

The theme of the localisation requirements for the REIPPP would also be highlighted at the 2012 Windaba conference and Nyker warned that the government needed to give the long-term implications of the policy serious thought. “The [capital expenditure] associated with constructing local manufacturing plants is significant and it is going to require a much longer-term view and a further megawatt commitment to wind to ensure that these manufacturing plants will be stable. Given the current global and local economic environment we cannot afford to invest in manufacturing facilities that will end up underutilised or loss making in the future,” she said.

“In this modern-day world of tighter operating margins and a theme of downsizing globally, the ‘just do it’ approach needs to be given much further thought and evaluation. Like many of us sitting here in this hall today, we want to build a localised industry that can stand on its own and indeed create that manufacturing gateway to the rest of the SADC [Southern African Development Community] region,” said Nyker.

The first REIPPP round required 25% local content for wind projects, which, according to SAWEA CEO Johan van den Berg was not overly onerous as it could be covered in the ‘balance of plant’ portion of the project costs. Even with the third round requiring 40% local content, Van den Berg said he thought this was still possible, though it would require South African blade and turbine contributions. “As we go further up it becomes a little bit more challenging but it’s not that it can’t be done, it’s the question of whether it can be done,” he said.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Renewable Energy News
Economic Development Minister Ebrahim Patel
Updated 4 hours ago The Department of Economic Development, together with Spanish solar company Abengoa and the Industrial Development Corporation on Monday launched a 100 MW concentrated solar power (CSP) park, about 60 km outside Pofadder, in the Northern Cape. Speaking to journalists...
Through its climate investment fund (CIF), the African Development Bank (AfDB) now supports one regional and 25 national investment plans across Africa.
Article contains comments
Property management company Citiq has officially opened its Umhlanga Junction Extension, a 75-bed student apartment block, in Brixton, built entirely from shipping containers. Situated in Caroline Street, the striking building was erected within two months. “We...
More
 
 
Latest News
Updated 4 hours ago South Africa could face another delay in its already years-delayed digital migration project if government adopted the much-disputed conditional access (CA) for the set-top boxes (STBs) required to intercept digital broadcasting frequencies. Emerging black-owned...
Updated 4 hours ago JSE-listed real estate investment trust Dipula Income Fund has entered into agreements to acquire the Umzimkhulu Shopping Centre, in KwaZulu-Natal, as well as the Corporate Industrial Park, in Polokwane, from two different vendors for R336-million. The industrial...
Updated 4 hours ago Domestic new vehicle sales in February increased by 1.1%, to 52 368 units, compared with the same month last year. Statistics released by the Department of Trade and Industry on Monday show that new passenger car sales grew by 1.5% in February, to 34 909 units.
More
 
 
Recent Research Reports
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...
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.
 
 
 
 
 
This Week's Magazine
Subscribe to Engineering News and Mining Weekly for two years, but only pay for the first year.  The weekly editions of Engineering News and Mining Weekly will be posted to your preferred postal address and also gain access to:
National flag carrier South African Airways (SAA) is in an advanced stage of renegotiating its deal with European airliner manufacturer Airbus to acquire A320 single-aisle (or narrow body) aircraft. The aim is to replace ten of the aircraft still on order with five...
Worldwide, the main thrust in the ports industry over the past decade or more has been to increase efficiency. Traditionally, ports have been run by engineers and mariners and, in the past, increasing a port’s capacity was achieved by expanding the harbour. “That has...
What do you do when an elephant has a toothache? You call Dr Gerhard Steenkamp from the University of Pretoria’s (UP’s) faculty of veterinary science, Onderstepoort, one of only two elephant ‘dentists’ in the world.
The 2015 Sanlam/Business Partners Entrepreneur of the Year (EOY) competition was launched earlier this month in Johannesburg, with the main focus on creating and inspiring entrepreneurs to create jobs and boost the economy.
 
 
 
 
 
 
 
 
 
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