http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.50Change: -0.18
R/$ = 12.06Change: -0.15
Au 1183.43 $/ozChange: 1.78
Pt 1133.00 $/ozChange: -3.50
 
 
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|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
Tesla Motors CEO Elon Musk.
Clean energy leader Tesla Motors on Thursday night launched a new range of batteries that could power homes and commercial buildings at a fraction of the expected cost, highlighting the growing demand for the minerals such a s graphite, cobalt and lithium required to...
Eskom said load-shedding should not be needed this weekend. According to the bi-weekly System Status Bulletin‚ released on Thursday‚ the power utility “will once again embark on a massive plant maintenance drive this long-weekend in an effort to improve the...
Russian State-owned nuclear group Rosatom has confirmed that it is in talks with Nigeria about the construction of nuclear power plants (NPPs) in that country, but has denied that any agreement has been signed. This follows a recent report in the Nigerian media that...
More
 
 
Latest News
Tesla Motors CEO Elon Musk.
Clean energy leader Tesla Motors on Thursday night launched a new range of batteries that could power homes and commercial buildings at a fraction of the expected cost, highlighting the growing demand for the minerals such a s graphite, cobalt and lithium required to...
Eskom said load-shedding should not be needed this weekend. According to the bi-weekly System Status Bulletin‚ released on Thursday‚ the power utility “will once again embark on a massive plant maintenance drive this long-weekend in an effort to improve the...
With just hours to go before the Broad Based Black Economic Empowerment (B-BBEE) Amended Codes of Good Practice come into law on 1 May‚ the Department of Trade and Industry (DTI) had still not clarified several important points - including the draft Qualifying Small...
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
Mercedes-Benz will launch ten plug-in hybrid models by 2017, says the German automaker’s parent company, Daimler. Following the launch of the S 500 plug-in hybrid, March saw the introduction of the C 350 e, the second model to feature the drive-train concept. Under...
Energy Minister Tina Joemat-Pettersson's recent unveiling of something of a road map for an upscaled and accelerated deployment of independent power producer (IPP) capacity has been widely welcomed. Besides plans to accelerate and expand the hitherto successful...
South African Airways (SAA) acting CEO Nico Bezuidenhout has firmly denied reports that a stake in the airline was going to be sold to Air China. “Categorically, SAA is not in any talks with any airline to sell itself at the moment,” he stated at a media briefing at...
Russian State-owned nuclear group Rosatom has confirmed that it is in talks with Nigeria about the construction of nuclear power plants (NPPs) in that country, but has denied that any agreement has been signed. This follows a recent report in the Nigerian media that...
HANDIGAS LPG LPG users can order products at the Afrox website or through the Afrox call centre and receive next-day delivery
Gas products and services company Afrox has launched a pilot programme to deliver its range of Handigas liquefied petroleum gas (LPG) to domestic consumers to fill a gap in the market, thereby expanding its direct contact with end-users.
 
 
 
 
 
 
 
 
 
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