Aug 16, 2012
Ministerial determinations on way to unlock baseload, renewables IPPsBack
Construction|Johannesburg|Africa|CoAL|Cogeneration|Eskom|Gas|Projects|Renewable Energy|Renewable-Energy|Solar|Technology|Africa|South Africa|Baseload Independent Power Producer|Cogeneration|Electricity|Energy|Gas-based Production|Overall Energy Mix|Technology Allocations|Cogeneration|Dipuo Peters|Nelisiwe Magubane|Power
© Reuse this
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
While there are battery-powered bolting solutions for wind turbine maintenance, the general consensus among wind energy industry stakeholders is that these solutions lack battery longevity and often succumb to overheating and bending, says bolting systems...
While wind turbines are standard products that are designed, verified by prototype testing and independently certified, their foundations are designed on a project-by-project basis to suit site-specific ground conditions. This, according to engineering consulting...
Engineering consulting firm Hatch Goba has introduced a new approach to integrated earthing for wind energy facilities, using insulated cables to connect the individual wind turbine groundmats to the substation groundmat, taking the equivalent circuit of the entire...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
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,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...