http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.20Change: 0.11
R/$ = 11.26Change: 0.01
Au 1218.07 $/ozChange: 9.38
Pt 1284.00 $/ozChange: -18.00
 
 
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  
 
 
Sep 03, 2009

Renewable energy industry players make Refit submissions to Nersa

Back
Engineering|Pretoria|Africa|Eskom|Generator|L&D Enterprises|PROJECT|Projects|Renewable Energy|Renewable-Energy|Sappi|Systems|Vestas Wind Systems|Africa|South Africa|CSP Power Tower|CSP Tower|Communities Experiencing Electricity Poverty|Electrical Energy|Electricity|Electricity Generation|Energy|Manufacturing|Reference Technology Cost|Renewable Energy Feed-in-tariff|Renewable Energy Generator|Systems|Wind Energy|Clive Mallen|Dave Long|David Nicol|Guy Spindler|Kevin McAlpine|Power|Stuart Fredman|Thembani Bukula|Tristen Taylor|Following Technologies|Wind Energy |Wind Energy Technologies
Engineering||Africa|Eskom|Generator|PROJECT|Projects|Renewable Energy|Renewable-Energy|Sappi|Systems||Africa|||Energy|Manufacturing|Systems|Wind Energy|Power||
engineering|pretoria|africa-company|eskom|generator|ld-enterprises|project|projects|renewable-energy|renewable-energy-company|sappi|systems-company|vestas-wind-systems|africa|south-africa|csp-power-tower|csp-tower|communities-experiencing-electricity-poverty|electrical-energy|electricity|electricity-generation|energy|manufacturing|reference-technology-cost|renewable-energy-feed-in-tariff-industry-term|renewable-energy-generator|systems|wind-energy|clive-mallen|dave-long|david-nicol|guy-spindler|kevin-mcalpine|power|stuart-fredman|thembani-bukula|tristen-taylor|following-technologies|wind-energy-technology|wind-energy-technologies-technology
© Reuse this



The public hearings for the second phase of the renewable energy feed-in-tariff (Refit) took place at the National Energy Regulator of South Africa's (Nersa's) office in Pretoria on Thursday, with 19 presenters from industry lined up to make presentations to the Nersa panel.

Nersa hearings chairperson Thembani Bukula told Engineering News Online that over 72 written comments were submitted to the regulator after it released the draft Refit 2 for comment in July.

In the draft consultation paper, a qualifying renewable energy generator under phase two of the Refit would be defined as a new investment in electricity generation using the following technologies: concentrated solar power (CSP) plant without storage; solid biomass; biogas; solar photovoltaic (PV) systems, large ground or roof-mounted; concentrating PV; concentrated solar power central tower.

Considering the market conditions, reference technology cost, and performance assumptions, Nersa, in its consultation document, outlined the levelised cost of electricity for CSP without storage as R3,132/kWh. For PV greater than 1 MW the levelised cost of electricity is R4,488/kWh; solid biomass is R1,181/kWh; biogas is R0,962/kWh, concentrating PV without storage is R5,481/kWh; and CSP tower with storage is R2,308/kWh.

Considering some of the presentations, Clean Energy Solutions MD Stuart Fredman urged Nersa to include CSP power tower without storage, and also wanted clarification regarding the concept of six hours of storage. He was averse to the idea of using only molten salt in CSP plants, and suggested investigating use of methane, which he said could be easily implemented and managed.

On the other hand, representing civil society, Earthlife Africa energy principal Tristen Taylor said his organisation felt that CSP should be excluded from the Refit 2, as the tariff was simply too high.

With regard to PV systems, Fredman felt that the Refit should include a range of additional scales, and different thresholds. He said that Nersa should include smaller PV systems, and should include deep rural communities, which could use PV systems for generation needs, but would need battery storage capacity, and would likely not feed energy back to the grid. This would be a way of extending electrical energy to those communities experiencing electricity poverty in unconnected communities.

L&D Enterprises consultant Clive Mallen, whose company has an interest in manufacturing and installing solar PV panels, said that a 3-km2 solar farm in South Africa could produce about 1 800 MW/h. He said the industry would like to see government linked contracts for solar farms, and also suggested the idea of establishing private utility companies.

"Eskom already has enough on its plate," he said, adding that these private utility companies could have small producers as members, and the utility would then provide this power on to Eskom.

South African Wind Energy Association representative David Nicol questioned why the regulator would distinguish between different solar technologies, when it was not doing the same for wind energy technologies.

"In trying to support too many technologies at the start, we wont reach the critical mass in the renewable energy industry required to meet the 2013 targets," Nicol added. He further proposed that the Refit should include a target of 3 000 MW to be produced by wind, as this would be the least cost option to reach the 2013 target, and grid studies have proven this possible.

POWER PURCHASE AGREEMENTS CONCERNS

Fredman said that the renewable energy industry was waiting for action on the power purchase agreement (PPA), and highlighted that implementation of projects was being stymied by hurdles being put up by bureaucratic institutions.

Nicol emphasised that by definition, a Refit was not a tender process, and thus renewable energy project developers needed to be assured that if they met the criteria, they should be awarded a PPA.

Numerous concerns arose that the awarding of PPAs would become a type of tender or bidding process, where it was of utmost importance for developers that if they met specific criteria, they would be assured the Single Buyers Office (SBO) would procure the power they produced.

Sappi electricity systems representative Guy Spindler said that the location of the SBO, within Eskom, was a conflict of interest. He also noted that it would be impossible to create a PPA that was suitable for all players, and thus the regulator should be more flexible.

Deputy chairperson of the Energy Intensive Users Group, Dave Long, also said that the PPA in its current form was inappropriate, and needed to be "fixed", particularly concerning the issues of long-term pricing and risk allocation. He noted that the PPA had already scared off a number of interested parties.

"The single buyers office is very clearly acting in Eskom’s fiduciary interests, and is not independent, but representing the biggest power generator in the country ... and therefore conflicted to some degree with those of us trying to do something independently," said Long, also adding that the SBO was difficult to deal with.

Vestas Wind Systems representative Kevin McAlpine recommended to the panel that, with regard to the PPA, the scope for negotiating over detail, and risk allocation should be removed, and said that some of the legalities regarding disputes could be "tightened up".

 

 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Regulation News
Cellular major MTN South Africa has approved two gas-powered generation developments for its Doornfontein (1 MW) and Newlands (6 MW) sites, in Gauteng, based on the success of its 2 MW trigeneration plant, at its Roodepoort headquarters. MTN will expand this...
Article contains comments
The National Energy Regulator of South Africa (Nersa) will release a consultation paper in February next year outlining the possible regulatory framework for “distributed power generation” in South Africa, including how “prosumers” could be empowered to feed surplus...
Article contains comments
Deputy President Cyril Ramaphosa
Government has received more than 180 nominations for the yet-to-be-established Ministerial Advisory Council on Energy, Deputy President Cyril Ramaphosa said on Wednesday. "I have been informed by the department of energy that the proposed ministerial advisory...
Article contains comments
More
 
 
Latest News
Updated 50 minutes ago Protech Khuthele Holdings on Wednesday said, in a cautionary note to shareholders, that, as the failed company unwound, investigations were ongoing into its affairs. The company provided no indication of the completion date.
Updated 53 minutes ago Private equity investors are increasingly becoming more active in Africa’s bid to narrow the $90-billion a year infrastructure funding gap constraining the continent’s growth. This was according to a survey by the Southern African Venture Capital and Private Equity...
Updated 1 hour 28 minutes ago The shortlist of innovations in the Africa Prize for Engineering Innovation was announced on Wednesday, comprising 12 new innovations from seven African countries. The shortlist announced by the UK’s Royal Academy of Engineering (RAEng) included innovations in...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
Updated 7 hours ago The latest TransUnion Vehicle Pricing Index (VPI) contains a number of small, but significant indications that the tide may at last be turning for the beleaguered used car industry. For the third successive quarter, used car inflation has increased on a year-on-year...
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu.  Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.
 
 
 
 
 
 
 
 
 
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