Oct 09, 2012
SA's renewables procurement programme to be enlarged by a further 3 200 MWBack
Johannesburg|Africa|Eskom|Projects|Renewable Energy|Renewable-Energy|Africa|South Africa|Energy|Energy Capacity|Renewables Technologies|Power|Thabang Audat|South Africa|Renewables Technologies
© Reuse this
Addressing a South Africa-Spain Business Summit in Johannesburg, Department of Energy (DoE) acting chief director Thabang Audat said the proposal had been sent to the National Energy Regulator of South Africa (Nersa) for its concurrence on the additional allocation.
He was unable to provide details as to how the new allocation would be divided between the various renewables technologies, but said this breakdown would be provided in a Ministerial determination, which would be published in the Government Gazette within seven working days of Nersa's concurrence.
The new renewables allocation meant that there would now be more than 4 360 MW of capacity available for future bidding rounds, with the next round scheduled to close in May, 2013.
Prior to this extension only 1 165.6 MW of capacity remained unallocated under the REIPPP, following two bidding rounds during which a total of 47 projects were named as preferred bidders.
Audat said progress had also been made in clearing the last remaining hurdles to enable the 28 first-round preferred bidders to reach financial closure, which had initially been scheduled for in June.
The delay had arisen owing to an "oversight" relating to the guarantees required by Eskom, the buyer of the renewable electricity from the projects, to safeguard its balance sheet.
These National Treasury guarantees would protect the independent power producers in the instance of any Eskom default, and outlined the process of recovering the costs to the State should such a default occur.
The National Treasury had approved and signed off on those guarantees on October 5 and would likely deliver formal communication of that decision to the DoE and Eskom within days, or weeks.
Therefore, Audat anticipated that developers should receive formal correspondence regarding the signing of the first-round power purchase and implementation agreements in late October, or early November.
Edited by: Creamer Media Reporter© Reuse this
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Other Electricity News
Recent Research Reports
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...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
This Week's Magazine
Power and automation company ABB is in the launch phase of its highest payload, multipurpose industrial robot, the IRB 8700. The robot has a reach of 3.5 m and can handle a payload of up to 800 kg. “When designing the IRB 8700, we emphasised reach and payload, as...
Identity and Access Management (IAM) is a critical facet of a connected security ecosystem, as controlling the confidentiality, integrity and authorisation of data access and use is key to securing new digital business channels. However, companies face several...
Data underpins digital business models, the digital economy, the Internet of Things and the fundamental changes in the ways people interact and protecting data is crucial to securing new ways of doing business, says T-Systems South Africa information and...
The City of Cape Town will issue a tender for the procurement of electric buses for its MyCiTi service, in line with the council’s commitment to lower its carbon footprint, says executive mayor Patricia de Lille. The tender, to be advertised early in February, will...
The iSimangaliso Wetland Park Authority signed a R10-million contract last month with local tailings storage facility specialists Cyclone Engineering Projects to remove about 100 000 m3 of dredge spoil obstructing the natural course of the uMfolozi river, in...