Jun 06, 2012
Shanduka moves to build regional energy portfolioBack
Construction|Gaza|ADC Projects|Africa|Aggreko|Building|Business|Engineering|Engines|Eskom|Gas|General Electric|Industrial|Power|PROJECT|Projects|Renewable Energy|Renewable-Energy|Resources|Sasol|Shanduka|Solar|Standard Bank|Technology|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|Services|Supply Electricity|Temporary Gas-fired Power Plant|Wind Energy|Wind Energy Project|Cyril Ramaphosa|Electricidade De Mo|Infrastructure|Victoria West
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
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Updated 7 hours ago 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...
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,...
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...