R/€ = 13.64
R/$ = 10.99
Au 1197.91 $/oz
Pt 1223.00 $/oz
Sep 25, 2007
SA plans to subsidise renewable energy schemesBack
Johannesburg|Africa|CoAL|Environment|Global Environment Facility|PROJECT|Projects|Renewable Energy|Renewable-Energy|System|Africa|South Africa|Electricity|Energy|Energy Needs|Energy Policy|Energy Summit|Energy Technologies|Finance Office|Renewable Energy|Renewable Energy Projects|Renewable Energy Technologies|Wind Energy|South African Government|Buyelwa Sonjica|Power|BIOFUELS|Renewable Energy Technologies
© Reuse this The South African government has set up a subsidy and finance office to guide funding for renewable energy technologies, Minerals and Energy Minister Buyelwa Sonjica said on Tuesday.
Speaking at an energy summit, where industry stakeholders are deliberating possible changes to the country’s energy policy, in Johannesburg, she said that South Africa would also establish a new certification system to support the development of renewable energy projects.
The Tradable Renewable Energy Certification System would provide an additional revenue stream for the development of the projects, and would be operational by early next year.
Renewable energy technologies, such as solar power, wind power, hydroelectricity, biomass and biofuels, were set to play a key role in South Africa’s energy needs, which were currently being met by electricity generated by coal. But, the technologies were often criticised for being too costly, when compared with technologies, such as coal-fired power, and “unreliable and unsightly”.
Sonjica said, however, that the State was recognising that there were barriers to the introduction of more renewable energy in the South African industry, and cited high capital costs.
“Overcoming the initial high capital costs and increasing the commercialisation of renewable energy technologies in a market driven by [an] energy economy, will guide funding for renewable energy technologies.”
She said that South Africa had also partnered with Global Environment Facility (GEF), an international organisation helping developing countries to fund projects and programmes that protect the environment, to provide technical assistance to renewable energy project developers, and to leverage investment from the private sector.
GEF would assist the State to implement a South African wind energy programme, and renewable energy market transformation projects.
The country had, thus far, managed to kick-start the interest from investors and independent power producers to start developing local renewable energy projects, but medium- to long-term financial mechanisms would now have to be developed, Sonjica stated.
The Department of Minerals and Energy and the National Energy Regulator of South Africa had started looking at the development of medium- to long-term financial mechanisms.
Edited by: Liezel Hill© Reuse this Comment Guidelines (150 word limit)
Other Electricity News
Updated 1 hour 39 minutes ago Fourth renewables bid announcement postponed amid third-round closure delay
Updated 2 hours 35 minutes ago Global law firm Baker & Mackenzie partner Paul Curnow believes South Africa holds significant upside potential for manufacturers and developers of commercial rooftop solar photovoltaic (PV) projects, as these players would be able to bypass often protracted...
Article contains comments
Updated 8 minutes ago Increased maintenance costs, poor rolling mill yields and strike action have widened Evraz Highveld Steel’s operating loss, from R149-million in the nine months ended September 30, 2013, to R483-million for the comparative 2014 period. The company added on Monday...
Updated 9 minutes ago Energy Minister Tina Joemat-Pettersson has misled Parliament and should be suspended pending an investigation, the DA said on Monday. "Reports indicate that the minister was involved in recommending and appointing Mr Tshepo Kgadima as chairman of the board of...
Updated 35 minutes ago The world’s biggest mining company BHP Billiton has agreed a R10-billion, five-year liquid metal supply contract with a black-controlled consortium in a transaction that gives the South African aluminium industry a shot in the arm. The diversified major, which is in...
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
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.