http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.09Change: 0.06
R/$ = 12.01Change: 0.14
Au 1202.25 $/ozChange: 26.05
Pt 1147.50 $/ozChange: 25.00
 
 
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  
 
 
Dec 02, 2010

IPPs keen to invest but more policy clarity needed

Back
Engineering|Africa|CoAL|Cogeneration|Eskom|Nuclear|Renewable Energy|Systems|Africa|Cogeneration|Energy|Nuclear|Solutions|Systems|Cogeneration|Power
Engineering|Africa|CoAL|Cogeneration|Eskom|Nuclear|Renewable Energy|Systems|Africa|Cogeneration|Energy|Nuclear|Solutions|Systems|Cogeneration|Power
engineering|africa-company|coal|cogeneration|eskom|nuclear-company|renewable-energy|systems-company|africa|cogeneration-industry-term|energy|nuclear-industry-term|solutions|systems|cogeneration-person|power
© Reuse this



Independent power producers (IPPs) are ready and willing to invest in the South African energy market, but need policy clarity from the government, to be able to invest comfortably.

South African Independent Power Producers Association (SAIPPA) representative Chikoma Kazunga said that the market demand for power was high and that new generation regulations should accommodate the willing buyer, willing seller model.

He also emphasised that clarity on the Independent Systems and Market Operator (ISMO) was required and the industry was waiting for the draft ISMO Bill.

Kazunga was speaking at the first day of the public hearings into the second integrated resource plan, or IRP 2010, which took place in Johannesburg on Thursday.

Engineering consultant for the IPP sector, Dave Long, stated that the IRP2010 needed to be more IPP, and job creation ‘friendly’.

Long stated that roll-out lower cost cogeneration technologies such as biomass and biogas should be maximised, in order to alleviate power looming shortages, as outlined in the medium-term risk mitigation plan (MTRMP).

He noted that there seemed to be a misalignment between the MTRMP, which required immediate short-term action, and the IRP2010, which took a longer-term planning view.

He added that low-cost cogeneration options should not be capped, as they could provide solutions to power shortages, while more expensive renewable technologies should be capped because they could push up the overall electricity price.

An Exxaro representative also raised concerns with the IRP2010, and put forward proposed alternatives. One of these was that the proposed 4 000 MW allocated to new-build coal from IPPs, which was scheduled to come online from 2017, should be brought forward and contribute sooner.

Long also reiterated the need for policy clarity and alignment, and added that the delays associated with numerous documentation have been going on for “far too long”.

He highlighted the delays with the pilot national cogeneration programme, the medium-term power purchase programme, the renewable energy feed-in-tariff, and the IRP2010.

He added that cogeneration feed-in-tariff regulatory rules were still required from the National Energy Regulator of South Africa (Nersa), as was clarity on the ISMO from the Department of Energy (DoE), and the operation of the Southern African Power Pool, which could potentially assist in alleviating power shortages.

ENERGY COMMISSION

Another point raised by Kazunga, was that it was felt that a permanent energy commission should be established, which would be tasked with researching future IRPs, and could draw on participation from international experts.

This point was reiterated by Smart Green Prosperity director John Joslin, who commented that the IRP2010 looked like a “slight variation of the Eskom expansion plan”, and did not deal with any issues of transmission or distribution.

The IRP2010 hearings in Johannesburg were well attended and numerous presentations were made by varying sectors of industry, as well as nongovernmental organisations.

Nersa electricity subcommittee chairperson Thembani Bukula, DoE deputy director-general for electricity, nuclear and clean energy Ompi Aphane, and DoE spokesperson Bheki Khumalo sat on the panel, which heard the presentations from the public.

The hearings would continue on Friday.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
South African mining and energy adviser Ted Blom has raised a litany of concerns about the state of power utility Eskom and has warned of runaway costs and shortfalls in coal and water, as well as rail capacity. Blom was surprised by the recent buoyancy shown by...
State-owned power utility Eskom has warned that it is highly likely that there will be load-shedding this weekend, as, along with its “massive maintenance drive” to improve the performance and reliability of its power generating units ahead of the expected peak...
Oil firm Chevron said on Friday it has offered to supply South Africa's electricity firm Eskom with excess diesel from its Cape Town refinery, to help run some of its generators. Steve Hegarty, the general manager for strategy at the oil major's South African unit...
More
 
 
Latest News
South African mining and energy adviser Ted Blom has raised a litany of concerns about the state of power utility Eskom and has warned of runaway costs and shortfalls in coal and water, as well as rail capacity. Blom was surprised by the recent buoyancy shown by...
JSE-listed Astrapak will sell specialised packaging systems manufacturer Knilam to Mapflex SA for R17.7-million. The proceeds would be used to reduce Astrapak’s current level of gearing.
The last of the 26 mooring units comprising the Port of Ngqura’s automated mooring system (AMS) have arrived at the port and are expected to improve port efficiency and safety, further driving the Transnet National Ports Authority’s (TNPA’s) objective of establishing...
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
Sappi Southern Africa CEO Alex Thiel
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.
 
 
 
 
 
 
 
 
 
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