May 26, 2011
First Refit capacity to be procured by year-end, Peters assertsBack
© Reuse this
“We hope to conclude at least 1 000 MW of renewable energy transactions by December this year, in time for showcasing as we host COP 17 in Durban,” she said in her Budget vote speech to Parliament. South Africa will host the 17th Conference of the Parties of the United Nations Framework Convention on Climate Change, or COP17, in Durban from November 28 to December 9.
“Apart from the showcasing, this programme is aligned to the New Growth Path and will substantially contribute to President [Jacob] Zuma’s vision on job creation.”
However, Nersa’s proposed reduction of the Refit rates had caused some concern among potential renewables project developers, with some warning that projects could be made marginal by the cuts.
But during the media briefing ahead of Peters’ speech, Department of Energy officials argued that Nersa’s review was in line with its policy for yearly reassessments of the rates, while the proposed cuts were reflective of changes that had taken place globally with regard to the capital on operating costs for wind and solar projects.
Officials also indicated that the appetite for the first 1 000 MW under Refit had been extremely strong and that there should still be sufficient uptake under a revised regime.
When asked to clarify the future procurement process, the department said that Eskom would be the ultimate buyer, while Nersa would govern the process and its timing.
After the next Nersa board meeting at the end of May, a final decision would be made on how the Refit procurement process would proceed. The department said it was hopeful that the programme would be in a position to be launched by June.
What was somewhat unclear was whether government might favour a competitive bidding process for the first round. Developers have warned that such an approach, which was likely to find support in the early stages, might lower the overall appetite for the South African renewables market in the longer term.
Edited by: Terence Creamer© Reuse this
Creamer Media Editor
To subscribe email email@example.com or click here
To advertise email firstname.lastname@example.org or click here
Other Electricity News
Article contains comments
Recent Research Reports
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...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
This Week's Magazine
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.