http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.28Change: -16.12
R/$ = 14.20Change: -14.06
Au 1293.40 $/ozChange: 2.25
Pt 1075.00 $/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 About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 12, 2010

SA sets private power target of 10% for next three years

Back
Africa|Business|CoAL|Engineering|Eskom|Generators|Power|Road|System|Africa|Energy|Service|Infrastructure
Africa|Business|CoAL|Engineering|Eskom|Generators|Power|Road|System|Africa|Energy|Service|Infrastructure
africa-company|business|coal|engineering|eskom|generators|power|road|system|africa|energy|service|infrastructure



The South African government has set a three-year target having 10% of the country's electricity supply arising from independent power producers (IPPs), Minister in The Presidency for Monitoring and Evaluation Collins Chabane revealed on Friday.

However, the target of having "a minimum of 30%" of South Africa's power being generated from private generators remained intact as a longer-term objective, Department of Energy (DoE) spokesperson Bheki Khumalo told Engineering News Online.

The 70% balance would be supplied by State-owned power utility Eskom, which currently produced about 95% of the country's electricity, mostly from coal-fired power stations.

Briefing the media following President Jacob Zuma's State of the Nation address to Parliament, in which he announced that IPPs would feature in South Africa's future power mix, Chabane said that the development an "efficient, competitive and responsive economic infrastructure network" was one of 12 desired outcomes from the priorities identified for government.

"Key activities of this outcome will be to develop an electricity system operator independent from Eskom Holdings by 2010 and a target 10% of electricity supply from IPPs," Chabane said.

The so-called independent system operator (ISO) was seen as crucial to levelling the playing field for IPPs, which felt that the current model that set Eskom up as the "single buyer" of power generated by private producers to be a constraint to investment.

The DoE had promised progress on the legal framework for such an ISO by March and Khumalo indicated that Energy Minister Dipuo Peters would brief the public on progress in this regard within weeks.

An inter-Ministerial committee on energy has also been created to develop a 20-year integrated resource plan (IRP) for new generation capacity.

Peters would also provide insight into the department's consultation plans for the so-called IRP2, following the release of a disappointing three-page ‘IRP1' in December, which was gazetted on December 31, 2010.

ENERGY PLAN ROAD SHOW

Khumalo indicated that, besides intragovernmental consultation, the IRP process would be consulted widely, but refrained from setting a timeframe for the when the process would begin - in December, Peters promised that the IRP2 would be in place by mid-2010.

He said that the department was considering a national road show on the IRP, during which the views of civil society would be garnered.

South African National Energy Associate chairperson Brian Statham argued earlier in the week that government, business and nongovernmental organisations should "work together to define what is both desirable and achievable in terms of policy and plans".

"Targets must be achievable and measurable," Statham argued, adding that this was no time for "idealistic dreams".

Business Unity South Africa (Busa), meanwhile, welcomed government's moves to deregulate the electricity market, through the establishment of an ISO, which it said, would increase private sector participation in the electricity sector.

"We eagerly expect details around the regulatory changes, which are necessary to ensure progress on this issue," Busa said in a statement.

African National Congress secretary-general Gwede Mantashe argued that the plan for an ISO was a major departure from past policy in the electricity supply sector and would be important in encouraging investment by IPPs, which were currently unhappy with a situation of having to contract with a competitor, in the form of Eskom.

However, the powerful Congress of South African Trade Unions (Cosatu) said it remained "totally opposed to the suggestion that privatisation has a role to play in the electricity generating sector, through the participation of independent power producers and an independent system operator".

"Cosatu remains convinced that moves towards privatisation will ultimately wreck a crucial public national service and we shall continue to campaign vigorously to prevent the sell-off of a vital public asset," the union said in a statement.

 

Edited by: Creamer Media Reporter

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Environmental Affairs Minister Edna Molewa
Cabinet has extended the contract of Department of Environmental Affairs (DEA) director-general Nosipho Ngcaba and approved the appointment of Limpho Makotoko as the new DEA COO.     “Under the leadership of Ngcaba, the DEA has consistently received clean and...
Mzwandile Masina
The Department of Trade and Industry (DTI) has invited companies to participate in a trade and investment mission to Ghana and Nigeria from August 8 to 12.   Companies in the agriculture and agroprocessing sectors, built environment professionals, automotive and...
Cabinet has approved the Industrial Policy Action Plan (Ipap) 2016/17 to 2018/19, which seeks to achieve a higher-impact industrial policy in difficult economic circumstances, including the difficulties faced by the domestic steel industry and the drought which has...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
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 $149 Close
Subscribe Now for $149