http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.58Change: 0.17
R/$ = 10.95Change: 0.02
Au 1201.61 $/ozChange: 2.45
Pt 1226.50 $/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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 19, 2009

New wind-energy partnership sets sights on 500-MW in SA by 2014

Back
Construction|Johannesburg|Africa|Barclays Capital|CoAL|Eskom|General Electric|KWh|Mainstream Renewable Power|PROJECT|Projects|Renewable Energy|Renewable-Energy|Siemens|Africa|Canada|Chile|South Africa|Energy|Renewable Energy Projects|So-called Renewable Energy Feed-in Tariff|Wind Energy|Wind-energy Capacity|Wind-energy Developer|Wind-energy Projects|Northern Cape|Environmental|Davin Chown|Power|Torben Andersen|Alberta|Eastern Cape
Construction||Africa|CoAL|Eskom|General Electric|PROJECT|Projects|Renewable Energy|Renewable-Energy|Siemens|Africa||Energy|Wind Energy|||Environmental|Power||
construction|johannesburg|africa-company|barclays-capital|coal|eskom|general-electric|kwh|mainstream-renewable-power|project|projects|renewable-energy|renewable-energy-company|siemens|africa|canada|chile|south-africa|energy|renewable-energy-projects|so-called-renewable-energy-feed-in-tariff|wind-energy|wind-energy-capacity-industry-term|wind-energy-developer|windenergy-projects|northern-cape|environmental|davin-chown|power|torben-andersen|alberta|eastern-cape-province-or-state
© Reuse this



A newly formed South African-European renewable-energy joint venture announced plans on Thursday for the development of 500 MW of wind-energy capacity in South Africa by 2014, and revealed that its first 30-MW venture would be “construction ready” by early 2010.

The joint venture comprises Irish wind-energy developer Mainstream Renewable Power, which will hold 85% of the new venture, and Genesis Eco-Energy, of South Africa.

Mainstream, which has a growing international project pipeline spanning four continents, would lend its experience, capital and fundraising muscle to the alliance, while Genesis would inject its local knowledge and an emerging portfolio of prospects in the Western, Eastern and Northern Cape provinces.

Mainstream’s chief development officer Torben Andersen said that the South African projects would be financed through a combination of equity and debt.

He added that he remained confident that there was sufficient appetite from domestic and foreign banks to enable an 80:20 debt-to-equity split, despite the credit crisis.

But the South African projects would hinge materially on the outcome of the National Energy Regulator of South Africa’s (Nersa’s) deliberations regarding a so-called renewable energy feed-in tariff, or Refit – a decision on which was due by the end of the month.

The joint venture had made a submission to Nersa indicating that wind-energy projects would require the Refit to be set at around R1/kWh, as opposed to the 65c/kWh proposed in Nersa’s consultation paper.

“We believe that the level proposed by the regulator was based on outdated capital-cost figures for the industry and we are hopeful that the final tariff will be adjusted to reflect current realities,” Genesis Eco-Energy’s Davin Chown said at a media briefing in Johannesburg.

Nersa, which was initially expected to make its Refit determination on March 9, was currently expected to make its adjudication on March 30.

The tariff structure was being pursued in support of government’s target of having 10 000 GWh of renewable energy projects in place by 2013.

Andersen asserted that, while wind would require a higher tariff than a coal-fired station, its inclusion into South Africa’s energy mix would also lower the overall risk associated with primary-energy price volatility. It would also reduce the need for peaking capacity, which was about three times more expensive than its R1/kWh proposal.

However, he cautioned that if the Refit was set at too high a level it would also encourage suboptimal wind projects on sites where the wind resource blew at a rate of lower than 7 m/s.

Mainstream was pursuing similar roll-outs in other regions of strong demand and policy support. It had already raised R1,27-billion in equity and mezzanine finance, including R260-million from Barclays Capital, which had taken a 14,6% position in the company. It had also recently concluded a R9,9-billion joint venture to build a 400-MW portfolio in Chile; a R6,6-billion joint venture deal in Alberta, Canada to build over 400 MW of wind energy by 2013; and had been awarded the exclusive right to develop a R13-billion offshore wind farm in Scottish territorial waters, with a potential capacity of 360 MW.

JEFFREY’S BAY LIKELY TO HOST FIRST R600M PROJECT

Chown indicated that its most advanced project was its R600-million, 30-MW prospect on a dairy farm near Jeffrey’s Bay, in the Eastern Cape, which was due to receive its environmental approval soon.

He said that the project was scheduled to move into the construction phase early in 2010, with commissioning planned for late 2011.

An analysis of the site and its wind map indicated that it would be able to deliver into the grid at a consistent average of 10 MW as measured over a period of a year.

Genesis was also pursuing a 50-MW project in the Southern Cape, a 65-MW facility in Lambert’s Bay and was optimistic of reaching an agreement with local communities and landowners in the St Helena Bay area.

In many instances, the wind facilities would coexist with farming activities, with farmers benefiting from long-term lease agreements.

The joint venture planned to employ proven turbine technology, with nameplate capacities of between 2 MW and 2,5-MW, which it would secure from established vendors such as General Electric, Siemens and Vestas.

It was also not overly concerned about the single-buyer model that had been proposed by government, whereby Eskom would establish power purchase agreements with all independent power producers, including renewable suppliers.

Further, Andersen was unfazed by the prospect of Eskom upscaling its involvement in wind through the development of a 100-MW wind farm, saying it would provide the utility with a deeper insight into wind as an energy technology.

“There are a lot of benefits that could arise from having the main operator of the grid understanding the operation of a wind farm,” Andersen averred, adding that he was in favour of the creation of both the market for wind energy, and for that market to be competitive.

Edited by: Terence Creamer
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Steel among the five resource value-chains being prioritised
The Mineral Beneficiation Action Plan (MBAP), which is currently in draft form, should be finalised by the end of March 2015, the Department of Trade and Industry (DTI) has confirmed. The department is leading the drafting process, which also involves the National...
Eskom started with scheduled blackouts on Friday afternoon, the power utility said. "Load shedding will continue until 8pm tonight," it said in a short power update.
The African Development Bank (AfDB) has approved a $133-million loan to fund a project aimed at improving access to electricity among poor populations in Kenya's rural areas. Only a third of Kenya's more than 40-million people are connected to the grid, and poor...
Article contains comments
More
 
 
Latest News
Industrialisation remains a major part of the South African developmental agenda and an important vehicle towards achieving the Department of Trade and Industry’s (DTI’s) target of creating 100 black industrialists in the next five years, Trade and Industry...
The construction of a new innovation hub in the heart of the Dube TradePort, in Durban, was set to kick off in March 2016, as Dube TradePort Corporation sealed a R160-million lease agreement with Eureka Capital. Eureka Capital planned to develop a seven-storey 21 500...
South Africa will become the first African country to host the Organisation for Economic Cooperation and Development’s (OECD’s) Steel Committee Conference when the committee’s seventy-seventh session takes place in Cape Town between December 11 and 12. The...
More
 
 
Recent Research Reports
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...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
JAMES ROBERTS The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.
 
 
 
 
 
 
 
 
 
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