http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.18Change: -0.04
R/$ = 10.53Change: -0.03
Au 1292.72 $/ozChange: -11.48
Pt 1469.50 $/ozChange: -12.00
 
 
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 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|Energy|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|energy-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
 
 
 
 
 
 
 
 
Other Renewable Energy News
The Ilanga II
The University of Johannesburg (UJ) will participate in the Sasol Solar Challenge 2014 with its latest solar car, the Ilanga II. Ilanga is the isiZulu word for the sun.
The Vanderbijlpark plate mill, which is to be upgraded
Steel producer ArcelorMittal South Africa (AMSA) reports that it is planning an upgrade to its plate mill at Vanderbijlpark in quarter four 2014, which will enable it to produce heavy plates of up to 11 t for South Africa’s emerging wind-tower manufacturing...
Financial close for bid window three under South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has been extended from the end of July to November, Energy Minister Tina Joemat-Pettersson revealed on Monday. Delivering her...
Article contains comments
More
 
 
Latest News
Updated 4 hours ago Despite a degree of ambiguity around the transfer of small business-focused promotion programmes from under the auspices of the Department of Trade and Industry (DTI) to the newly formed Department of Small Business Development (DSBD), Small Business Development...
Olivier Blanchard
Updated 4 hours ago The International Monetary Fund (IMF) has once again lowered its 2014 growth forecast for South Africa to 1.7%, having previously forecast that Africa’s second-largest economy would expand by 2.3%. The 0.6% downward revision, which is contained in the World...
Updated 4 hours ago A study on the economic state of the City of Johannesburg’s (CoJ’s) economy has revealed lagging growth and a lack of diversification as the city struggled to return to pre-financial crisis growth levels. The ‘CoJ Economic Overview 2013: A Review of the State...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Local aerospace company Denel Aerostructures (DAe), part of the State-owned Denel Group, has won a fourth contract to manufacture parts for the Airbus A400M military air transport and air-to-air refuelling aircraft. The new contract, which was won in an international...
Bob Skinstad
Although CEO Mark McChlery and chief marketing officer Bob Skinstad likened themselves to children in a playground when taking on the task of “reengineering and repositioning” the Seartec brand, the “young, dynamic and enthusiastic guys” were like proud...
An increasing number of buyers, in both the new and used car markets, are opting for finance structures that lower their monthly repayments, says asset financing company WesBank. These include the use of large balloon payments (also known as residuals), as well as...
Tertiary education institutions can use search engine giant Google’s Chromebook to provide secure mobile end-point devices for students on which they can share documents, work collaboratively on documents and access education materials and applications being used...
Local ceiling and partition company Abbeycon has beaten global competition at the Saint-Gobain Gypsum International Trophy competition, which was held last month in Berlin, Germany.
 
 
 
 
 
 
 
 
 
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