Oct 09, 2012
Progress on first SA renewables projects needed to re-establish momentum – Spanish industry bodyBack
Engineering|Africa|Eskom|PROJECT|Projects|Renewable Energy|Renewable-Energy|Southern Africa Renewable Energies Consortium|Africa|South Africa|Energy|Energy Project Developers|Juan Laso Rodriguez|Power|Southern Africa
© Reuse this
Spain and Southern Africa Renewable Energies Consortium president Juan Laso Rodriguez told Engineering News Online on the sidelines of the 'South Africa-Spain Business Meeting' on Tuesday that the delays were understandable. But it was now critical for the first projects to reach closure soon to sustain REIPPP's momentum and credibility.
The fact that the first projects did not close in June as initially scheduled was resulting in additional costs for developers and raising risks for suppliers.
However, Rodriguez stressed that the momentum could be more than rebuilt if the delays to the first two rounds led to a vastly improved and expanded third bidding round, which had been pushed back until May next year. In the second bidding round a further 19 projects were named as preferred bidders.
Re-establishing momentum, he stressed, was important to sustaining investor interest at a time when other large renewables programmes were emerging in other jurisdictions.
The Department of Energy indicated that the outstanding guarantees needed to support Eskom's balance sheet had been approved on October 5 and that the signing of power purchase and implementation agreements should proceed in late October, or early November. It also indicated the allocation to renewables projects would be increased and the procurement process extended to 2020.
Rodriguez stressed that the REIPPP was still perceived positively by Spanish companies, which believed the competitive bidding processes could increasingly emerge as the preferred procurement mechanism in other parts of the world.
The programme's localisation, black-empowerment and community development had not lowered the appetite of Spanish companies, which generally prided themselves on their ability to partner with local enterprises.
The consortium, which was supported directly by member companies and morally by the Spanish government, was also pleased with the success rate of Spanish developers and component suppliers in the first two rounds.
Rodriguez said Spanish companies were represented both as developers and suppliers and that other companies planned to participate in the upcoming third bid window.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Electricity News
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
In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...