R/€ = 15.44Change: 0.11
R/$ = 13.76Change: 0.02
Au 1137.58 $/ozChange: 1.13
Pt 914.50 $/ozChange: 8.50
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

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  
Jun 06, 2012

Shanduka moves to build regional energy portfolio

Construction|Engineering|Gaza|ADC Projects|Africa|Aggreko|Building|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|Services|Supply Electricity|Temporary Gas-fired Power Plant|Wind Energy|Wind Energy Project|Cyril Ramaphosa|Electricidade De Mo|Infrastructure|Power|Victoria West
Construction|Engineering||Africa|Building|Engines|Eskom|Gas|General Electric|Industrial|PROJECT|Projects|Renewable Energy|Renewable-Energy|Resources|Water|Africa|||Energy|Power Generation|Power-generation|Services|Wind Energy||Infrastructure|Power|
© Reuse this

Black economic-empowerment investment holding company Shanduka is pursuing several power generation partnerships in South and Southern Africa in a bid to build its “nascent” energy unit, which is already involved in renewable and conventional power projects in the region.

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
Wind farm operators are under no illusion that their small power generation output will be inadequate to meet South Africa’s baseload issues. However, they believe that in time new storage measures and lower costs will change the game radically. Aurora Wind Power...
An inaugural energy conference taking place in Cape Town next week is expected to demonstrate the drivers behind Africa remaining a preferred business destination for the renewables-energy sector and is being touted as a common platform through which government, the...
Energy storage systems have a key role to play in smoothing electricity consumption in South Africa because it can reduce peak demand, enable broader and more efficient use of alternative energy and renewable-energy systems, as well as enable more efficient use of...
Article contains comments
Article contains comments
Latest News
In the boom times when the price of gold was soaring, Ebenezer Sam-Onuawonto had a dream job and a dollar salary many times the national average in this mining town in southwestern Ghana. When the price fell, he lost his job as human resources chief at a mining...
Property developer Balwin Properties aims to raise between R713-million and R1.6-billion ahead of its listing on the real estate holding and development sector of the JSE on October 15. It would use the funds to settle existing debt facilities and fund future...
The information and communications technology (ICT) in education leg of Operation Phakisa has been launched to transform the basic education sector and leverage ICTs to strengthen teaching, learning and administration of the education system. The Operation Phakisa...
Recent Research Reports
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...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
Energy analyst and EE Publishers MD Chris Yelland warned recently against excessive optimism regarding timescales for the proposed construction of new nuclear power plants (NPPs) in South Africa. He was speaking at a Nuclear Roundtable in Johannesburg. “I think we...
Malawi’s Lilongwe Water Board (LWB) is inviting eligible bidders to prequalify for the board’s efficiency improvement works, which will be implemented as part of the E24-million Lilongwe Water Resources Efficiency Programme.   LWB CEO Alfonso Chikuni explains that...
CROATIA, AN EU MEMBER BUT NOT A TDCA MEMBER On July 1, 2013, Croatia officially became the twenty-eighth member of the European Union (EU). Despite Croatia’s accession into the EU, it is yet to become party to the Trade, Development and Cooperation Agreement (TDCA)...
The Council for Scientific and Industrial Research (CSIR) has announced that its new Inundu airborne electronics testing, evaluation and training pod had made its first test flight on September 10. The successful flight was undertaken from Lanseria International...
The Development Bank of Southern Africa (DBSA) – which disbursed a record R13-billion during 2015, from R12.7-billion in the prior year – remained optimistic that it could ramp-up loan disbursements to R25-billion a year by 2018 as it sought to give greater emphasis...
Alert Close
Embed Code Close
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
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