http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.30Change: -0.09
R/$ = 10.69Change: -0.12
Au 1294.75 $/ozChange: -2.81
Pt 1476.50 $/ozChange: -3.00
 
 
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|Energy|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|energy-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 electricity tariffs are likely to increase by more than the 8% already sanctioned for the year starting April 1, 2015, after the energy regulator determined on Wednesday that Eskom had under recovered R7.82-billion in revenue between 2010 and 2013. The...
The Medupi power station project
Electricity producer Eskom has, for the first time, offered a detailed timeline for the synchronisation of Medupi Unit 6, which is officially scheduled for December 15, 2014. Addressing a joint meeting of the Portfolio Committees on Public Enterprises and Energy on...
Article contains comments
More
 
 
Latest News
Updated 7 minutes ago Nigeria-focused oil and gas explorer Oando Energy Resources (OER) on Wednesday announced that it had completed the acquisition of the Nigerian upstream oil and gas business of New York-listed ConocoPhillips for a total cash consideration of $1.5-billion as well as a...
Updated 13 minutes ago The disciplinary hearing of telecommunications giant Telkom’s suspended CFO Jacques Schindehütte was set to resume next Wednesday. Telkom said it hoped the hearing would result in a definitive resolution on the matter of Schindehütte’s personal conduct after a...
Updated 30 minutes ago While unauthorised expenditure by South Africa’s municipalities has declined year-on-year, irregular expenditure has recorded a R2-billion increase as municipalities failed to follow legislated procurement procedures, the latest Auditor-General South Africa audit...
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
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
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