http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.14Change: -0.15
R/$ = 12.05Change: -0.20
Au 1200.03 $/ozChange: -6.12
Pt 1139.50 $/ozChange: -16.00
 
 
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  
 
 
Aug 16, 2012

Ministerial determinations on way to unlock baseload, renewables IPPs

Back
Construction|Johannesburg|Africa|CoAL|Cogeneration|Eskom|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|Projects|Renewable Energy|Renewable-Energy|Africa||Cogeneration|Energy||Cogeneration|Power
construction|johannesburg|africa-company|coal|cogeneration|eskom|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
President Jacob Zuma
President Jacob Zuma says the independent commission of inquiry into Eskom should get to the root cause of the problems facing the power utility. In an exclusive interview with the South African Broadcasting Corporation (SABC) on Thursday night, the President spoke...
A South African court dismissed on Friday an application by Westinghouse Electric Company to re-open the bidding process for a generator contract awarded to French rival Areva, a court official said. Westinghouse, the world's largest nuclear fuel producer and part of...
Lynne Brown
Power utility Eskom has implemented regular power cuts this year to prevent the national grid being overwhelmed, as South Africa faces its worst energy crisis in decades, Public Enterprise Minister Lynne Brown said earlier this week, adding that power outages cost...
More
 
 
Latest News
The government of St Helena (SHG) and its Department for International Development (DFID) on Friday appointed airline Comair as the provider of air services to St Helena with the Island’s first airport opening in 2016. Comair would offer a weekly Saturday service,...
The Department of Communications (DoC) digital terrestrial television (DTT) project team was accelerating its efforts to “revive” South Africa’s long anticipated transition from analogue to digital broadcasting. After a more than six-year delay, the next few weeks...
Paul-Roux de Kock
Residential property prices are forecast to grow at 7.2% this year, on the back of 6.72% growth in 2014.
More
 
 
Recent Research Reports
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.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
 
 
 
 
 
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...
 
 
 
 
 
 
 
 
 
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