http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.85Change: 0.01
R/$ = 12.75Change: -0.10
Au 1085.55 $/ozChange: -6.97
Pt 950.00 $/ozChange: -8.50
 
 
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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 16, 2012

Ministerial determinations on way to unlock baseload, renewables IPPs

Back
Construction|Johannesburg|Africa|CoAL|Cogeneration|Eskom|Gas|Projects|Renewable Energy|Renewable-Energy|Africa|South Africa|Baseload Independent Power Producer|Cogeneration|Electricity|Energy|Gas-based Production|Overall Energy Mix|Technology Allocations|Cogeneration|Dipuo Peters|Nelisiwe Magubane|Power
Construction||Africa|CoAL|Cogeneration|Eskom|Gas|Projects|Renewable Energy|Renewable-Energy|Africa||Cogeneration|Energy||Cogeneration|Power
construction|johannesburg|africa-company|coal|cogeneration|eskom|gas|projects|renewable-energy|renewable-energy-company|africa|south-africa|baseload-independent-power-producer-industry-term|cogeneration-industry-term|electricity|energy|gas-based-production|overall-energy-mix|technology-allocations|cogeneration-person|dipuo-peters|nelisiwe-magubane|power
© Reuse this



Energy Minister Dipuo Peters will issue determinations in the near future to kick-start a baseload independent power producer (IPP) procurement process, as well as extend the Renewable Energy Independent Power Producer Programme (REIPPP) beyond the 3 725 MW currently being procured for delivery by 2016.

Speaking at a REIPPP bidders conference in Johannesburg, Peters indicated that the determination would be in line with the Integrated Resource Plan (IRP) for electricity, which was published in March 2011.

The IRP envisaged the introduction of an additional 6 250 MW of non-Eskom coal-fired generation between 2014 and 2030, 2 370 MW of gas-based production between 2019 and 2030, an addition 3 910 MW of peaking capacity and the importation of 2 609 MW of hydroelectricity.

However, there was a strong push to raise the level of gas in the overall energy mix and a desire to integrate some of the potential capacity that emerged from a request for information (RFI) exercise. There was a strong response to the RFI, with developers submitting potential projects with a combined capacity of 60 300 MW, which they said could be introduced before March 2019.

Peters also confirmed that the REIPPP would be converted into a “rolling” programme and that additional renewables capacity would be added through an upcoming determination.

Again, no figures were provided for the next REIPPP phase, but the IRP suggests that 8 400 MW of wind, 8 400 MW solar photovoltaic and 1 000 MW of concentrated solar power (CSP) should be added by 2030.

However, director-general Nelisiwe Magubane indicated that there could well be adjustments to the technology allocations for renewables, stressing that local content and job creation would be critical in determining such adjustments. She also gave a strong indication that the allocation for CSP was likely to be increased under the new determination.

Government had also decided to retain the current bid-window schedule associated with the first REIPPP phase, which began in August last year – this notwithstanding a delay in finalising financial closure for the first 28 projects identified as preferred bidders in December.

The Department of Energy (DoE) was expecting to begin concluding outstanding financial-closure agreements with the first 28 wind and solar bidders named in December and hoped to complete the process by the end of August. But requests had also been made for an extension of the bidding period beyond the initial August 31 bid-validation period.

The signing would open the way for the construction of projects representing a collective investment value of around R46-billion and a collective capacity of 1 415 MW.

The DoE had also named a further 19 bidders following the second window, raising the capacity allocated to the 47 preferred bidders to around 2 460 MW.

Therefore, until the REIPPP was enlarged through the issuance of a new determination there was only 1 165 MW still to allocate, with the third bidding window due to close on October 1.

The delay in reaching closure was attributed primarily to internal authorisation processes within government, including the firming up of government guarantees for Eskom, which would be the buyer of the power over a 20-year horizon. Magubane said these issues would not arise during the subsequent windows, which was why the DoE was holding to its published schedule.

Peters also confirmed that the process to procure 100 MW of the 3 725 MW from small-scale IPPs will be launched before year-end.

She also said she would be issuing a further determination to accelerate aspects of the ‘Medium Term Risk Mitigation Plan’, which was associated with the IRP and included near-term actions to deal with South Africa’s prevailing power shortages, including the introduction of cogeneration projects.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Updated 10 minutes ago Libya's biggest steel firm, Lisco, has shut production for at least a month due to power shortages, its chairman said on Tuesday, closing down the country's biggest industrial company outside the energy sector. Libya has been hit hard by power outages as fighting...
Article contains comments
Clinton Ephron
Financially stricken Optimum Coal has been hit by a double whammy – huge potential penalty claims from State electricity utility Eskom plus a suspension of its mining licence by the Department of Mineral Resources (DMR) for alleged inhumane retrenchment. In the face...
Eskom announced on Tuesday that it would implement stage 2 load-shedding due to a shortage of generation capacity. "Due to increased electricity demand and a shortage of generation capacity due to power station units being on maintenance, Eskom will implement stage 2...
Article contains comments
More
 
 
Latest News
Updated 12 minutes ago Libya's biggest steel firm, Lisco, has shut production for at least a month due to power shortages, its chairman said on Tuesday, closing down the country's biggest industrial company outside the energy sector. Libya has been hit hard by power outages as fighting...
Economic Development Minister Ebrahim Patel
Updated 26 minutes ago South Africa's mining sector is in "trouble" as it struggles with widespread job losses and lower commodity prices, Minister of Economic Development Ebrahim Patel said on Wednesday. President Jacob Zuma's government was due to hold an urgent meeting with mining...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
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