http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.69Change: -0.06
R/$ = 10.62Change: -0.04
Au 1293.20 $/ozChange: 3.15
Pt 1412.20 $/ozChange: 2.20
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office 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|Energy|Eskom|Generator|L&D Enterprises|Power|PROJECT|Projects|Renewable Energy|Sappi|Systems|Vestas Wind Systems|South Africa|CSP Power Tower|CSP Tower|Communities Experiencing Electricity Poverty|Electrical Energy|Electricity|Electricity Generation|Energy|Reference Technology Cost|Renewable Energy Feed-in-tariff|Renewable Energy Generator|Systems|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|pretoria|energy-company|eskom|generator|ld-enterprises|power-company|project|projects|renewable-energy|sappi|systems-company|vestas-wind-systems|south-africa|csp-power-tower|csp-tower|communities-experiencing-electricity-poverty|electrical-energy|electricity|electricity-generation|energy|reference-technology-cost|renewable-energy-feed-in-tariff-industry-term|renewable-energy-generator|systems|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
 
 
 
 
 
 
 
 
Other Regulation News
Creamer Media’s Electricity 2014 report provides insight into South Africa’s electricity generation, exploring the issues of State-owned power utility Eskom's generated power, coal supplies, electricity tariffs and demand-focused initiatives, as well as the...
Article contains comments
Improving energy infrastructure on the African continent will unleash investments, drive jobs and drive down pollution, US Deputy Energy Secretary Daniel Poneman has told the Power-Gen Africa conference in Cape Town. An upbeat Poneman said while energy costs in...
The National Energy Regulator of South Africa on Thursday granted State-owned company Transnet a petroleum pipeline tariff increase that would allow the realisation of a 5.08% rise in revenue for the next year – well short of the nearly 20% applied for. The new...
More
 
 
Latest News
A new business association has been formally launched to link foreign suppliers of equipment to State-owned companies (SoCs) with large and small domestic companies in an effort to improve prospects for higher levels of local content in South Africa’s...
The Nelson Mandela Bay municipality has upgraded its Department of Human Settlements’ centralised information centre (CIC), introducing a new integrated land planning information system (ILIS) and refurbishing the interior and exterior of the centre, using...
The KwaZulu-Natal (KZN) Department of Transport on Thursday announced a 77.3 km, R1.2-billion road upgrade that would connect Pongola and eDumbe, in the north western part of the province. The project, of which the first 6.5 km, R65-million, construction phase had...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
Updated 7 hours ago Celebrating its fiftieth Green Star SA certification in only six years, and with a further 150 projects in the Green Star SA registration pipeline, the impact will increase significantly. “In South Africa, certified new green buildings now cover nearly one-million...
SMART MOVER What differentiates VWSA’s AGV line from other AGV lines is that it is a completely contactless system
Updated 7 hours ago Volkswagen Group South Africa (VWSA) has installed an automated guided vehicle (AGV) line to replace the traditional roller conveyor used on the VW250 engine line. An AGV is a mobile robot that follows markers or cabling in the floor, or uses vision or lasers to...
Updated 7 hours ago South Africa has an opportunity to achieve a similar result to that of China, which has lifted hundreds of millions of its citizens from poverty to prosperity, but the challenge is to develop world-class customer-focused engineers.
Updated 7 hours ago South Africa had more than enough money and resources to deliver on the constitutional promise of quality of life for all, but those involved in corruption have cost the country immensely.
LATE-ARRIVAL BMW The arrival of the i8 supercar has been delayed to March 2015
Updated 7 hours ago BMW South Africa has postponed the introduction of the i3 city car and i8 supercar to March 2015, says spokesperson Edward Makwana. The i3 is an electric vehicle, and the i8 a plug-in hybrid. Both models were scheduled for local introduction this 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