http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.26Change: -0.12
R/$ = 12.19Change: -0.12
Au 1183.33 $/ozChange: -3.27
Pt 1113.50 $/ozChange: -6.00
 
 
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 Letters 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|Operations
Construction|Engineering||Africa|Eskom|Projects|Renewable Energy|Renewable-Energy|Africa||Energy|Power|Operations
construction|engineering|johannesburg|africa-company|eskom|projects|renewable-energy|renewable-energy-company|africa|south-africa|energy|dipuo-peters|power|operations
© 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 Infrastructure News
JSE-listed Vukile Property Fund’s headline earnings a share for the year ended March 31, increased by 14% year-on-year to 187c, while earnings a share rose 21% to 278c. The fund further reported 8.1% year-on-year growth in normalised distributions a share, delivering...
The mandate of local government has expanded greatly over the last ten years, and now includes more comprehensive operational responsibilities, as well as new ones, such as air quality management, says KPMG South Africa City Centre of Excellence associate director...
Article contains comments
South Africa’s credit rating is at risk of being downgraded if government fails to pay the debt taken on to fund infrastructure programmes, such as the upgrading of Gauteng’s major highways, National Treasury deputy director-general for tax and financial sector...
More
 
 
Latest News
Updated 21 minutes ago Vertically integrated steel and vanadium slag producer Evraz Highveld Steel and Vanadium’s business rescue practitioners (BRPs) have appointed nonexecutive director Andrew Phillip Maralack acting CFO of the company, with immediate effect. Maralack was a qualified...
Airbus A350XWB
Updated 34 minutes ago Airliner manufacturer Airbus continues to seek to improve its production efficiency. This was highlighted to aviation journalists from around the world on Thursday at Airbus' Innovation Day 2015 by company COO Tom Williams. "The main issue for us is commitments," he...
Seifsa chief economist Henk Langenhoven
Updated 48 minutes ago The level of intermediate inputs imported by South Africa’s metals and engineering sector has risen strongly from around 22% 20 years ago to over 35% currently, Steel and Engineering Industries Federation of Southern Africa (Seifsa) research shows. Speaking at the...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
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.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
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