http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.69Change: -0.05
R/$ = 12.32Change: -0.01
Au 1168.78 $/ozChange: -0.02
Pt 1083.00 $/ozChange: 1.00
 
 
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  
 
 
Jun 21, 2011

Cloud of uncertainty still hanging over SA renewables sector

Back
International law firm Dewey & LeBoeuf partner Scott Brodsky discusses the need for clarity and alignment around the Refit. Editing: Lionel da Silva.
 
 
 
Engineering|Africa|PROJECT|Projects|Renewable Energy|Renewable-Energy|System|Africa|Energy|Power
Engineering|Africa|PROJECT|Projects|Renewable Energy|Renewable-Energy|System|Africa|Energy|Power
engineering|africa-company|project|projects|renewable-energy|renewable-energy-company|system|africa|energy|power
© Reuse this



Uncertainty with regard to South Africa’s renewable energy feed in-tariff (Refit) rates was a significant concern for potential investors, delegates to the Solar South Africa conference, being held in Johannesburg, heard on Tuesday.

While it was an exciting time for renewable energy development in South Africa, investors needed clarity and alignment around the Refit, international law firm Dewey & LeBoeuf partner Scott Brodsky argued.

He felt encouraging progress by the National Energy Regulator South Africa (Nersa) and government since 2009, had been offset by a range of setbacks.

“There are a number of other issues that remain to be resolved for the Refit programme to be successful,” he said. These included the identity of buyer and government support, the procurement process, risk allocation in the power purchase agreement (PPA), lender considerations and connection to the grid.

“Guaranteed and priority grid access is a key requirement of any successful,” said Brodsky. While the Refit documents refer to “guaranteed access” to the grid, he explained that they did not explain how this would be achieved, nor did the PPA provide relief for possible connection delays.

He added that developers and lenders would be looking for the final documentation that provided the information on which party was responsible for which aspects of the connection to the grid, for example any required grid strengthening, and the compensation available to the seller for any delay in connecting the facility to grid.

Clarity about the “rules of the game” were, thus, still necessary before investments could proceed.

The current review of the Refit rates needed to be clarified “as quickly as possible,” he told Engineering News Online. Nersa had indicated that the outcome of the review should be released during June.

Clarity was also needed on whether price would play a role in the selection of renewable energy projects, as well as what the other selection criteria would be.

Brodsky also motivated for confirming the identity of buyer, the timing of the roll-out, as well as process with regard to the migration to an independent system and market operator.

The draft PPA should also be revised to achieve a balanced and bankable risk allocation, while associated project documentation, such as the connection agreement, the distribution and transmission use of system, and direct agreement for review, should also be published.

“Independent power producers have been through a number of false starts and investors, whether South African or international, can only be asked to continue to spend time and money for so long.

“There are numerous markets competing for investor interest and funding. Regardless of final result, these latest developments have created uncertainty and heightened regulatory risk concerns and the problem will be exacerbated the longer the uncertainty continues - official clarification and detail is needed,” Brodsky said.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Regulation News
This eight-page brief is a synopsis of key developments in the electricity industry over the past 12 months, including details of South Africa’s constrained power system; State-owned power utility Eskom’s financial status and tariffs, capacity expansion programme,...
The Department of Energy (DoE) plans to launch its Solar Energy Technology Roadmap, which seeks to map solar technologies and the way these fit into South Africa’s long-term energy plan, before the International Renewable Energy Conference in October. Speaking at a...
Article contains comments
Article contains comments
More
 
 
Latest News
Updated 7 hours ago An end to wage negotiations within the local government sector could be in sight as a conciliator’s proposal, setting out a number of settlement suggestions to resolve the deadlock, was expected on Monday. The Independent Municipal and Allied Trade Union (Imatu)...
Updated 7 hours ago Development financier Eastern Cape Development Corporation (ECDC) executive Noludwe Ncokazi on Friday said the organisation had the “huge responsibility of ensuring business continuity”, following the resignation of ECDC subsidiary Automotive Industry Development...
Updated 7 hours ago South Africa’s second-largest oil refinery, Engen Refinery (Enref), is set to undergo a three-day planned maintenance outage from July 9 as part of an ongoing maintenance programme to ensure that the facility, which delivers a significant portion of South Africa’s...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
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