http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.14Change: -0.15
R/$ = 12.05Change: -0.20
Au 1200.03 $/ozChange: -6.12
Pt 1139.50 $/ozChange: -16.00
 
 
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  
 
 
Jul 26, 2012

Further financial-close delay in prospect for 28 renewables bidders

Back
Engineering|Africa|Eskom|PROJECT|Projects|Renewable Energy|Renewable-Energy|Africa|South Africa|Energy|Power Generation|Power-generation|Renewable-energy Project Developers|Environmental|Dipuo Peters|Power
Engineering|Africa|Eskom|PROJECT|Projects|Renewable Energy|Renewable-Energy|Africa||Energy|Power Generation|Power-generation||Environmental|Power
engineering|africa-company|eskom|project|projects|renewable-energy|renewable-energy-company|africa|south-africa|energy|power-generation|power-generation-industry-term|renewable-energy-project-developers-industry-term|environmental|dipuo-peters|power
© Reuse this



The 28 renewable-energy project developers identified in December as preferred bidders, following the first bid window under South Africa’s R100-billion Renewable Energy Independent Power Producer Programme (REIPPP), have been notified that the timing of financial closure may be delayed beyond the end of July.

News of yet another possible extension emerged only days after Energy Minister Dipuo Peters indicated that the deadline had been extended by the Department of Energy (DoE) to the end of July, from an initial deadline of June 19.

But the developers have since received correspondence stating: “Notwithstanding the Minister of Energy’s reference last week to the extension of financial close to the end of July, the department is not currently in a position to advise preferred bidders of the earliest date on which the department and Eskom could conclude the implementation agreements, the power purchase agreements and the direct agreements.”

The correspondence indicates that approvals are still being processed and that the department will issue further communication “as soon as possible”.

The note states, too, that the “department has no reason to believe that the approvals will not be forthcoming, but the process for obtaining them is taking longer” than had been anticipated.

The DoE and the National Treasury did not immediately respond to questions directed to them by Engineering News Online seeking clarity regarding the reasons for the delay, as well as what impact the postponement could have on the 19 second-round preferred bidders and plans for the opening of the third bid window.

Peters indicated previously that the postponement had been designed to “meet developers halfway” as some projects were battling to meet the “stringent” requirements of financial institutions, while others were dealing with environmental appeals processes, or working on ways to meet the jobs, local content and community development commitments outlined in their bids.

But Engineering News Online has learned that some developers are uncomfortable with the prospect of yet another delay, as these could have material costs implications for their projects as contracts have been concluded with suppliers.

The 28 first-window projects collectively represent about 1 415 MW. But any capacity not absorbed through a failure to reach closure will be added into the third bidding round, or any subsequent tenders that could emerge.

Through the REIPPP, the DoE aimed to procure 3 725 MW of capacity, which could be introduced into South Africa’s power generation mix between 2014 and 2016.

During the first two bid windows, 47 onshore, wind, solar photovoltaic and concentrate solar projects advanced to the preferred-bidder stage – the projects represented potential capacity of 2 459.4 MW.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Updated 6 hours ago State-owned power utility Eskom and Public Enterprises Minister Lynne Brown confirmed on Wednesday that contracts under the so-called short-term power purchase programme (STPPP) had been renewed ahead of the March 31, 2015, expiry date. Eskom told Engineering News...
Updated 7 hours ago State-owned power utility Eskom said on Wednesday that full power from Medupi Unit 6 should be reached by the end of May and that it was working to ensure that the completion of the remaining five units was not undermined by further technical or labour problems. The...
A new handbook, titled Understanding Power Purchase Agreements, has been published under the aegis of President Barack Obama’s Power Africa initiative, which was launched in June 2013 with the aim of facilitating the addition of 30 000 MW of new electricity...
More
 
 
Latest News
Updated 6 hours ago State-owned power utility Eskom and Public Enterprises Minister Lynne Brown confirmed on Wednesday that contracts under the so-called short-term power purchase programme (STPPP) had been renewed ahead of the March 31, 2015, expiry date. Eskom told Engineering News...
Updated 6 hours ago The value of copper stolen in February decreased to R12.7-million, from R12.9-million in January, but was 18.1% higher than the value of copper stolen in February 2014, the South African Chamber of Commerce and Industry (Sacci) revealed on Wednesday. In its latest...
Updated 7 hours ago Paper and packaging group Mpact has concluded a broad-based black-economic empowerment (BBBEE) deal that will see a purpose-formed trust subscribing for 10% of the ordinary issued shares in group subsidiary Mpact Operations, which holds its South African businesses....
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
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...
 
 
 
 
 
 
 
 
 
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