http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.00Change: 0.01
R/$ = 10.66Change: -0.03
Au 1286.61 $/ozChange: -0.89
Pt 1424.00 $/ozChange: -2.00
 
 
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  
 
 
Jul 27, 2012

Regulations still not conducive to private power production – Saippa

Back
Africa|Eskom|Projects|System|Systems|Africa|South Africa|Electricity|Energy|Power Producer|Supply Electricity|Systems|Doug Kuni|Power|Wolfgang Böhmer
Africa|Eskom|Projects|System|Systems|Africa||Energy|Systems|Power|
africa-company|eskom|projects|system|systems-company|africa|south-africa|electricity|energy|power-producer|supply-electricity|systems|doug-kuni|power|wolfgang-bhmer
© Reuse this



Ongoing differences between independent power producers in South Africa and government legislators and regulators regarding the rules governing independent power producers surfaced at a recent workshop convened by industry body the South African Independent Power Producers Association (Saippa) in June.

“Regulations of the National Energy Regulator of South Africa and the Electricity Regulation Act (4 of 2006) are making the process to develop a power plant and sell electricity into the national grid complicated,” said Saippa MD Doug Kuni.

He commented on the proposed second amendment to the Electricity Regulation Act, stating that an independent power producer will have to obtain Ministerial permission to sell electricity, even if a company supplies its own needs, unless it supplies electricity to a State-owned enterprise.

“Under the existing Act, a company can supply itself and the Act should remain nondiscriminatory in that regard,” he said, noting that independent power production could be developed by allowing companies to supply electricity to their own operations.

Further, Saippa member companies questioned the necessity of providing a 24-hour forecasting for power production by each plant connected to the grid, as required by the South African Grid Code. The code also requires plants to provide a six-day forecast for power production.

Saippa members believe that regulations do not take cognisance of power producers’ challenges, specifically with regard to investments and financing, as well as risks, and place an onerous burden on aspiring independent power producers.

However, State-owned power utility Eskom Grid Code Secretariat transmission system operator Bernard Magoro emphasised the centrality of maintaining grid stability for the utility, which motivated the changes to the grid code.

Each plant would be required to have three control modes to be able to respond to the grid network operator’s settings and support the voltage of the network, especially under emergency conditions, he explained.

“Scheduling and dispatch 24-hour visibility are required for Eskom to manage the systems and control outage processes, as well as enable real-time operation. “The utility must be able to communicate directly with plants to curtail or produce electricity under emergency conditions,” he noted.

“Increased forecasting is key and is necessary for grid stability and to regulate the quality of supply. We must ensure that plants do not compromise the system,” he emphasised.

Meanwhile, Eskom Grid Access Unit head Wolfgang Böhmer said the utility was drowning in the more-than- 600 applications it had received for connections to the grid by independent power producers and was finding it challenging to effectively evaluate projects and grant grid access.

“Policies are not well coordinated and there are risks we must consider. The challenge is to ensure that we streamline the processes and we are engaging weekly with the Department of Energy to influence policymaking with regard to power procurement, which remains a challenge,” he said.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Updated 4 hours ago South African utility Eskom said on Monday that a report in a business newspaper that power supply would be "highly constrained" for the next five years was a "worst-case scenario." "It would not be correct to say categorically that it would take five years. That is...
Mining and energy solutions firm Cronimet Mining Power Solutions officially broke ground and began its engineering, procurement and construction (EPC) contracting activities for a large Namibian photovoltaic (PV) power plant on August 18. The PV project is located in...
Article contains comments
To bolster its argument that renewable energy is critical to combating climate change, the World Wide Fund for Nature-South Africa (WWF-SA) has commissioned a series of reports that investigates the state of renewable energy in the country, focusing on how it can be...
More
 
 
Latest News
Updated 7 minutes ago Statistics released by the Department of Trade and Industry on Monday, showed that August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37...
Updated 7 minutes ago The 14 350 km Sat-3/Wasc/Safe cable system connecting Europe to the west coast of Africa has been successfully upgraded, doubling the system capacity. The fourth upgrade, undertaken by Alcatel-Lucent and the Sat-3/Wasc/Safe consortium, which includes Telkom, had seen...
Telkom CEO Sipho Maseko
Updated 45 minutes ago As telecommunications group Telkom continued the turnaround that raised its share price from R11 a few years ago to the current R55 a share, the previously beleaguered group aimed to play a significant role in the provision of broadband to all South Africans....
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...
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
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
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