http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.32Change: -0.11
R/$ = 11.14Change: -0.07
Au 1223.16 $/ozChange: 5.90
Pt 1333.00 $/ozChange: 1.00
 
 
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  
 
 
Sep 28, 2012

Fresh renewables delay, but DoE insists projects will be signed off in October

Back
Construction|Engineering|Johannesburg|Africa|Eskom|Projects|Renewable Energy|Renewable-Energy|Africa|South Africa|Energy|Dipuo Peters|Power
Construction|Engineering||Africa|Eskom|Projects|Renewable Energy|Renewable-Energy|Africa||Energy|Power
construction|engineering|johannesburg|africa-company|eskom|projects|renewable-energy|renewable-energy-company|africa|south-africa|energy|dipuo-peters|power
© Reuse this



The first 28 preferred bidders selected under South Africa’s Renewable Energy Independent Power Producer Programme (REIPPP) have again been formally requested to extend the validity of their bids to enable government to tie some final loose ends before signing off on the projects.

Under the original schedule, the projects, which were named by Energy Minister Dipuo Peters in December, were expected to reach financial closure by mid-June. But the process has been delayed to enable government to finalise a support framework for Eskom, which will purchase the power produced by the wind and solar developers.

Initially, bidders were requested to extend the validity of their bids until the end of September, but they have received a subsequent request to extend the validity to the end of October. Bidders had until the close of business on September 28 to indicate that they accepted the schedule change.

The Department of Energy’s (DoE’s) Ompi Aphane has confirmed with Engineering News Online that the request had indeed been made. But he insists that the internal government processes required to finalise a government support framework for Eskom are well advanced and that government should be in a position to begin signing-off on the first projects in the coming weeks.

The signing would open the way for the construction of projects representing a collective investment value of around R46-billion and a collective capacity of 1 415 MW.

A National Treasury credit committee met to advance the matter on Thursday, September 27.

Aphane says it would be premature to comment on whether the “slippage” will result in a change to the published commercial operations deadlines for the projects, most of which are meant to be fully integrated into the national grid during 2014. The concentrated solar power projects have until 2016 to reach commercial operations.

Once all government approvals have been secured, Aphane says the focus will shift to establishing the necessary logistical arrangements for the signing of the various agreements, including the 20-year power purchase agreements with Eskom and the implementation agreements with government.

He anticipates that government will initially seek to sign two or three of these a day, and then move to accelerate the process once it becomes more accustomed to what is entailed. A central facility is likely to be established in Johannesburg to help streamline the sign-off.

In light of the first-window delays, the DoE has already confirmed schedule changes for the conclusion of the second-window process and the third bid-window submission date.

Financial close for the 19 second-round preferred bidders, initially set for December 2012, is now expected to take place between March 18 and 28, 2013.

A new third-window submission date of May 7, 2013, has also been confirmed, with the previous deadline having been October 1, 2012.

Through the REIPPP, government is aiming to procure 3 725 MW of renewables capacity, which leaves only 1 165 MW still to be allocated, owing to the fact that the current 47 preferred bidders have absorbed 2 460 MW.

However, it is possible that the DoE will approach the National Energy Regulator of South Africa during October for its concurrence on a new determination that could materially enlarge the allocation and convert the REIPPP into an ongoing procurement mechanism.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Patricia de Lille, PJ Rabie and Dominic Chennells
Updated 2 hours 34 minutes ago In a boost for renewable energy, the City of Cape Town has signed its first small-scale embedded electricity generation contract with Black River Park Investments, an office park in Observatory.  The 74 000 m2 office park uses large-scale solar power systems to...
Updated 3 hours ago South Africa's nuclear cooperation deal signed this week with Russia is part of a tender process that will involve other competing countries and is not a contract to build power plants, government officials said on Tuesday. The Russian atomic agency Rosatom said on...
Article contains comments
 South Africa signed a nuclear power cooperation deal with Russia on Monday that paves the way for the building of up to 9.6 GW of nuclear power based on Russian technology by 2030, both sides said. The surprise announcement from the sidelines of a International...
Article contains comments
More
 
 
Latest News
Updated 1 hour 57 minutes ago The Standard Bank Group has been named one of the world’s greenest banks by Bloomberg Markets, ranked eighteenth out of 20 global finance institutions recognised for their investments in green-energy projects and efforts to reduce their own waste and carbon...
Updated 1 hour 58 minutes ago The Department of Environmental Affairs (DEA) was considering establishing an air quality index, to make information on the quality of ambient air in South Africa more accessible, DEA national air quality officer Dr Thulie Mdluli said on Tuesday. She noted that the...
Patricia de Lille, PJ Rabie and Dominic Chennells
Updated 2 hours 15 minutes ago In a boost for renewable energy, the City of Cape Town has signed its first small-scale embedded electricity generation contract with Black River Park Investments, an office park in Observatory.  The 74 000 m2 office park uses large-scale solar power systems to...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
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