http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.14Change: -0.15
R/$ = 12.05Change: -0.20
Au 1200.03 $/ozChange: -6.12
Pt 1139.50 $/ozChange: -16.00
 
 
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  
 
 
Feb 12, 2010

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

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



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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
South African mining and energy adviser Ted Blom has raised a litany of concerns about the state of power utility Eskom and has warned of runaway costs and shortfalls in coal and water, as well as rail capacity. Blom was surprised by the recent buoyancy shown by...
JSE-listed Astrapak will sell specialised packaging systems manufacturer Knilam to Mapflex SA for R17.7-million. The proceeds would be used to reduce Astrapak’s current level of gearing.
The last of the 26 mooring units comprising the Port of Ngqura’s automated mooring system (AMS) have arrived at the port and are expected to improve port efficiency and safety, further driving the Transnet National Ports Authority’s (TNPA’s) objective of establishing...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in 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...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Sappi Southern Africa CEO Alex Thiel
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.
 
 
 
 
 
 
 
 
 
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