Jun 06, 2012
Shanduka moves to build regional energy portfolioBack
Construction|Engineering|Gaza|ADC Projects|Africa|Aggreko|Engines|Eskom|Gas|General Electric|Industrial|PROJECT|Projects|Renewable Energy|Renewable-Energy|Resources|Sasol|Shanduka|Standard Bank|Water|Africa|Mozambique|South Africa|United Kingdom|Cape Peninsular University Of Technology|Beverage|Electricity|Electricity Development|Energy|Energy Sectors|Financial Services|Food|Power Generation|Power-generation|Supply Electricity|Temporary Gas-fired Power Plant|Wind Energy|Wind Energy Project|Cyril Ramaphosa|Electricidade De Mo|Infrastructure|Power|Victoria West|Water
© Reuse this
The group, which has Cyril Ramaphosa as its chairperson and is led by CE Phuti Mahanyele, has 27 investments across the resources, financial services, food and beverage, industrial and energy sectors. Its current portfolio includes investment in companies such as McDonald’s South Africa, Mondi Shanduka Newsprint, Scaw Metals and Standard Bank and Mahanyele says its enterprise value is currently R13-billion.
Energy and infrastructure MD Nandkishor Moharir tells Engineering News Online that unlike the food and beverages milieu, where Shanduka aims to own and control the assets in which it invests, Shanduka Energy is at a far earlier stage of development.
“So we are looking at taking minority positions in projects and building up a competency in this area over time. But we hope that, over a period of five years, we will be able to exercise significant influence,” Moharir explains, adding that no capacity target has yet been established.
The company is partnering with interim power specialist Aggreko, of the UK, on a 107 MW temporary gas-fired power plant, in Mozambique, which will supply electricity to the utilities of both countries over a two-year period. The facility will be fuelled by gas from Sasol's Temane gasfield and the electricity will be purchased by South African power utility Eskom and its Mozambican counterpart, Electricidade de Moçambique (EDM).
It has maintained a partnership with Aggreko for the past six years, with the joint venture’s most high-profile recent project having been that of supplying temporary power for the FIFA 2010 World Cup.
But it is also participating in the development of a 40 MW gas-fired electricity development, in Mozambique, a 75 MW wind energy project in South Africa and is advancing with plans to develop a solar water heater business in partnership with a Tsinghua University-owned company called Tsinghua Solar and the Cape Peninsula University of Technology.
Moharir says the company has taken a 37.5% stake in the Kuvaninga independent power producer project situated near Chokwe, in the Gaza province of southern Mozambique.
The project is being codeveloped with Investec, Enventure and the Kuvaninga municipal authority and the power will be sold to EDM over a ten-year period. The gas is to be supplied by Sasol and the facility will comprise ten General Electric/Jenbacher reciprocating engines. It will be built by Group Five and operated by ADC Projects.
“We are not yet building, but we are close to concluding the power purchase agreement with EDM,” Moharir says.
Shanduka is also partnering with Gestamp Wind (60%), South African Renewable Green Energy (12.5%) and community groups (2.5%) on the 75 MW Nobelsfontein wind farm, which is located near Victoria West, in the Karoo. Shanduka is a 25% participant in the development.
The project was named as a preferred bidder during the first bid window under the South African government’s Renewable Energy Independent Power Producer Programme (REIPPP), which means that it must reach financial closure by mid-June.
A commercial operation date has been set for the first quarter of 2014, which means that construction should begin by the end of July.
The company is mulling further wind and solar bids during the third REIPPP window, but Moharir says it first wants to assess the economic viability of future bids in light of the decline in prices from the first bid window to the second.
The Department of Energy has announced that average prices offered by the solar photovoltaic developers fell from 2.75 c/kWh in window one to 1.65c/kWh, while wind fell from 114c/kWh to 89c/kWh. The concentrated solar power plant prices fell slightly from 268c/kWh to 251c/kWh.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Renewable Energy News
Article contains comments
Updated 2 hours 29 minutes ago The South African Chamber of Commerce and Industry (Sacci) would work with the office of the Afican National Congress (ANC) secretary-general Gwede Mathashe on a series of constructive engagements on improving the domestic economic climate and building a more...
Updated 2 hours 41 minutes ago JSE-listed investment and empowerment group Grand Parade Investments (GPI) and electronics contract manufacturer Tellumat have teamed up to create a 51:49 joint venture company Grand Tellumat Manufacturing. The transaction would see the engineering skills and...
Updated 2 hours 41 minutes ago JSE-listed property group Redefine Properties on Friday said its acquisition of all the assets and the property portfolio of Fountainhead Property Trust, had not been approved by the requisite majority of Fountainhead unitholders and would, therefore, not be...
Recent Research Reports
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...
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
The multibillion-rand development of the Zendai Modderfontein New City, east of Johannesburg, will aim to exemplify an integrated city node, says property group Zendai South Africa COO Wenhui Du. The development will focus on the Modderfontein Gautrain station to be...
The South African Civil Aviation Authority (CAA) hopes to have finalised regulations for the flying of Unmanned Air Vehicles (UAVs) – also designated Remotely Piloted Air Systems (RPAS) and popularly called drones – in the country’s civilian airspace by the end...
Various stakeholders have expressed optimism that the Small Business Development Ministry, created after the national elections in May, will add much needed impetus to enterprise development in South Africa, where a strengthening of the entrepreneurial culture is...
Capturing and storing carbon dioxide (CO2) is the only way through which the world will achieve the lowest of the United Nations Framework Convention on Climate Change’s (UNFCCC) global warming predictions, called the representative concentration pathway (RCP) 2.6....
The City of Johannesburg has recovered R107-million following the arrest of 22 people allegedly involved in corruption, collusion, fraud and tampering with the city’s electricity systems, which had ultimately cost the city R200-million in lost revenue.