http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.26Change: 0.11
R/$ = 11.61Change: 0.03
Au 1196.77 $/ozChange: 2.31
Pt 1199.50 $/ozChange: 2.00
 
 
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 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
anzania's attorney general resigned late on Tuesday, becoming the first political casualty in an energy corruption scandal in the east African country that has led Western donors to delay aid and weakened the currency. The resignation followed a vote in parliament...
The Democratic Alliance on Tuesday called on Deputy President Cyril Ramaphosa to clarify Eskom's latest threat of further rolling blackouts. Spokesperson on public enterprises Natasha Michael said Ramaphosa had to disclose the reason four generators stopped working...
South Africa asked on Friday for bidders to submit proposals to build coal-fired power plants as part of a string of initiatives launched this week aimed at ending chronic electricity shortages. Bidders will need to pay a nonrefundable R200 000 rand ($17 000) fee...
More
 
 
Latest News
Updated 5 hours ago China appears to have been routinely underestimating output from its sprawling steel sector, with official figures for last year alone 40-million tonnes below a key industry estimate - an amount equivalent to Germany's entire annual production. Beijing has vowed to...
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
The Labour Court in Johannesburg has set aside the 2011-2014 metal sector wage agreement, the National Employers' Association of SA (Neasa) said on Thursday. The 2011-2014 wage deal was the result of an agreement between the Steel and Engineering Industries...
More
 
 
Recent Research Reports
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...
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.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
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