http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.67Change: 0.03
R/$ = 10.96Change: 0.06
Au 1199.51 $/ozChange: 1.35
Pt 1220.50 $/ozChange: -2.50
 
 
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 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 Electricity News
Eskom capital division group executive Dan Marokane
Electricity utility Eskom says it and Anglo American have concluded a Memorandum of Understanding (MoU) that maps out the process to be followed to enable the parties to conclude a final coal-supply contract for the Kusile power station, which is currently being...
Article contains comments
Medupi project site
Electricity utility Eskom has confirmed a likely further, albeit modest, slippage in the schedule for first synchronisation of Medupi Unit 6, which was scheduled for December 24, 2014. The delay is the latest in several to afflict the project, which has faced...
Eskom CEO Tshediso Matona
State-owned electricity utility Eskom is forecasting a dramatic slump in profitability for the full-year to March 31, 2015, with CEO Tshediso Matona indicating that its profit is likely to fall to R500-million in 2014/15 from nearly R7.1-billion in 2013/14. Releasing...
Article contains comments
More
 
 
Latest News
The South African National Accreditation System (Sanas), which operated under the auspices of the Department of Trade and Industry (DTI), is embarking on a drive to develop synergistic accreditation bodies across Africa to bolster international trade. The continent’s...
Eskom capital division group executive Dan Marokane
Electricity utility Eskom says it and Anglo American have concluded a Memorandum of Understanding (MoU) that maps out the process to be followed to enable the parties to conclude a final coal-supply contract for the Kusile power station, which is currently being...
South Africa has dropped four places to rank eighty-third in the World Energy Council’s 2014 Energy Trilemma Index as the country’s performance remained stagnant, while other countries such as China and Nigeria improved their rankings. The WEC Energy Trilemma Index...
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
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.
JAMES ROBERTS The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
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.
 
 
 
 
 
 
 
 
 
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