http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.83Change: -0.12
R/$ = 11.04Change: -0.17
Au 1172.85 $/ozChange: 3.68
Pt 1231.00 $/ozChange: -0.50
 
 
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  
 
 
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
Rosatom VP: sub-Saharan Africa Viktor Polikarpov
Russian nuclear energy group Rosatom confirmed on Friday that it had canvassed funding options with South African government officials during a recent “nuclear vendor parade workshop” held in the Drakensberg on October 23. The company said the options discussed were...
Energy utility Eskom and the South African Local Government Association (Salga) have signed a memorandum of understanding (MoU) aimed at fostering an active partnership to ensure a cooperative and collaborative working relationship. The MoU, which was signed by Salga...
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
More
 
 
Latest News
The retail price of 95-grade petrol in South Africa will drop by 45 cents or 3.3 percent a liter from next Wednesday, while wholesale diesel will decrease by 4.9 percent, the government said on Friday. Petrol will cost 13.16 rand ($1.20) a liter while the wholesale...
Special purpose vehicle GreenCape will, by the end of 2014, make an application to the Department of Trade and Industry (DTI), the Western Cape provincial government and the City of Cape Town to declare Atlantis, on the Western seaboard, a special economic zone...
The German government has committed a further R70-million towards the second phase of the Non-Motorised Transport (NMT) programme. The NMT programme forms part of the Department of Environmental Affairs’ 2010 FIFA World Cup National Greening Legacy Programme.
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
 
 
 
 
 
This Week's Magazine
In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...
 
 
 
 
 
 
 
 
 
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