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 Comment Guidelines (150 word limit)
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.