http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.14Change: -0.02
R/$ = 12.15Change: 0.15
Au 1186.09 $/ozChange: 0.29
Pt 1121.00 $/ozChange: -19.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
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  
 
 
Mar 29, 2011

Stable policy implementation needed to encourage renewable energy investment

Back
Africa|Building|CoAL|Flow|PROJECT|Renewable Energy|Renewable-Energy|Resources|Sustainable|System|Training|Africa|Energy|Flow|Power Generation|Power-generation|Solutions|Wind Energy|Power
Africa|Building|CoAL|Flow|PROJECT|Renewable Energy|Renewable-Energy|Resources|Sustainable|System|Training|Africa|Energy|Flow|Power Generation|Power-generation|Solutions|Wind Energy|Power
africa-company|building|coal|flow-company|project|renewable-energy|renewable-energy-company|resources|sustainable|system|training|africa|energy|flow-industry-term|power-generation|power-generation-industry-term|solutions|wind-energy|power
© Reuse this



Base-load renewable energy supply could be viable in South Africa in the next decade or two, depending on a mindset change, decentralised supply and the amount of risk government and the private sector is willing to take, a panel of power and energy experts said on Tuesday.

Global thought leaders attending the Power and Electricity World Africa conference in Johannesburg said renewable energy has in the past for years increasingly competed with coal-fired generation, setting the stage for the development of renewable power generation.

However, the state of planning and implementation was not what it should be and the South African government’s response was too slow, leading to slow uptake from investors.

A Department of Energy (DoE) representative, delivering a speech on behalf of Energy Minister Dipuo Peters, said government aimed to tackle the slow uptake of renewable energy development by intensifying public-private partnerships, as collaboration and capacity building was key to the implementation of renewable energy in South Africa.

“Africa faces serious socioeconomic challenges with high poverty and low power supply. Investment must come into all energy resources available to us and policies must be carefully crafted to attract investment,” the DoE representative noted.

Panel members identified access to finance, supporting policies and frameworks, access to information, as well as training and capacity shortages as key barriers to the development of renewable energy.

Israeli Ministry of Industry and Trade director-general Sharon Kedmi said South Africa needed a stable, firm policy for foreign investment in renewable energy.

Global wind energy council secretary-general Stephen Sawyer agreed, pointing out that power generation was the largest contributor to climate change, necessitating changes to the sector, such as switching from fuel to gas and applying renewables at scale.

“Stable long-term policy implementation and clarity about the future would significantly encourage businesses to jump onto renewable energy development,” he noted.

The implementation of renewable energies could further offer solutions to almost every need and situation in rural and developed Africa, according to the Belgium Alliance for Rural Electrification secretary-general Simon Roland.

Roland and World Future Council Africa liaison office director Ansgar Kiene agreed that sustainable change in society could most easily be brought about through changed policies and political will.

Another challenge identified by Renewable Energy and Energy Efficiency Partnership (REEEP) South Africa representative Jason Schäffler was that renewable energy posed vast possibilities, but government struggled to implement it.

While government cited high capital costs as one of the most significant challenges to renewable energy development, other panel members believed this was a myth.

Mainstream Renewable Energy South Africa MD and GM Davin Chown said renewable energy implementation could cost less than coal-fired stations.

“The common perception is that renewable energy increases the cost of electricity generation. This is untrue. Wind and free fuel renewables actually reduce the portfolio risk of our national generation assets,” he asserted.

He added that each unit of wind-generated electricity saves R0,11, proving its efficiency. A study done in Ireland showed that wind power generation in 2011 was expected to reduce the country’s wholesale market cost of electricity by about €74-million.

“It is possible to generate affordable renewable energy with the correct regulatory system,” he said.

Roland agreed, adding that the challenge is not the price, but rather the technology.

Chown believed that there should not be any further changes to the renewable energy feed-in tariff (Refit) programme and that its benefits, such as rural development, skills development and industry development, which would all be funded by Refit,should rather be highlighted.

“Refit will even lead to job creation in the long run, resulting from agricultural development and broad-based black economic empowerment. A stable Refit programme without any regulatory uncertainty is of utmost importance,” he stressed.

Wind power, which was said to be the cheapest solution to local energy-generation challenges and also the quickest plant to deploy, would provide 40 000 jobs in South Africa by 2025. Chown pointed out that this could go a long way towards derisking the economy, driving rural and agricultural development and alleviating poverty.

The National Energy Regulator of South Africa published a consultation paper earlier this month, in which it proposes substantial decreases to the Refit rates when compared with those approved and promulgated in 2009. The paper proposes tariffs that are 7,3% lower on some technologies and more than 41% lower on others.

The proposed changes come ahead of the release of a request for proposals for the first 1 025 MW of the Refit project.

Meanwhile, the panel highlighted a number of points that it was hoped would flow from the United Nation's 17th Conference of the Parties, to be held in Durban in December, such as the encouragement of more small-scale electricity generation, the implementation of the second Kyoto protocol, without the US, and leapfrogging fossil fuel development.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 4 hours ago State-owned freight transport group Transnet has announced that Richard Vallihu has been appointed CEO of Transnet National Ports Authority (TNPA) from April 1, following the retirement of Tau Morwe.   Vallihu, who has hitherto headed Transnet Engineering (TE), would...
Eskom chairperson Zola Tsotsi
Updated 5 hours ago The chairperson of South African power firm Eskom said he faced a vote of confidence by the utility's board late on Monday, after being accused of acting improperly by suspending the chief executive. State-owned Eskom has implemented regular power cuts this year to...
Updated 5 hours ago Despite the “overwhelming” positivity surrounding the majority of the changes contained within the Private Security Industry Regulatory Authority (PSIRA) Amendment Bill, one clause has “unintended consequences” capable of damaging South Africa as an attractive...
More
 
 
Recent Research Reports
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
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...
 
 
 
 
 
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
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
 
 
Close
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