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Renewable Energy Independent Power Producers Procurement Programme

Eskom May End Anti-renewable Energy Stance Soon

written by saurabh

South Africa’s power utility is expected to end its alleged opposition towards procurement of renewable energy from some projects under the country’s auction programme, the energy minister has indicated.

Tina Joemat-Pettersson recently stated that the impasse between Eskom and renewable energy generators has been broken. This could mean that the utility may soon fulfil its promise to procure all electricity generated from projects already auction.

In August last year, Eskom had refused to sign PPA with a concentrated solar power project backed by SolarReserve with capacity of 100 megawatts. The project has a tariff of 12.40/kWh and the agreement was supposed to be signed for a duration of 20 years.

Eskom openly stated that it will no longer sign PPAs with any renewable energy projects. The utility stated that there was excess renewable energy going into the grid which has also increased the cost of power.

Eskom has expressed difficulty in absorption of the rapidly increasing renewable energy capacity in the country due to transmission capacity constraints. The utility recently secured funding to strengthen power grid. The African Development Bank (AfDB) announced a $1.34 billion loan to South African utility Eskom for the expansion and strengthening of its transmission network.

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03/05/2017 0 comment

Renewable Energy

South African Utility Eskom Threatened With Legal Action For Its Alleged Preference To Nuclear Over Renewables

written by saurabh

The South African Renewable Energy Council has suggested that the country’s utility may soon face legal action for its decision not to sign fresh power purchase agreements with renewable energy projects.

According to media reports, the council chairman has suggested that Eskom has not done enough to promote the advancement of renewable energy infrastructure in the country. While the utility is bound to signed PPAs and procure electricity from renewable energy projects auctioned by the government, the company has stopped doing so citing transmission constraints.

The council stated that this approach by the utility has jeopardised renewable energy investments worth $3.63 billion and has put thousands of jobs at risk. Additionally, it has also raised doubts about the future of the Renewable Energy Independent Power Producer Procurement auction programme. In 2015 the Minister of Energy, Tina Joemat-Pettersson, has announced that she would approach the National Energy Regulator (NERSA) to make arrangements to offer an additional 6.3 GW in future auctions.

01/15/2017 0 comment

Renewable Energy

Construction Begins At 100 MW Kathu CSP Project In South Africa

written by saurabh

Construction has begun on yet another concentrated solar power project in South Africa under its famed, and now controversial, Renewable Energy Independent Power Producers Procurement Programme (REIPPPP).

A consortium led by ENGIE recently announced that construction work has begun at the Kathu 100 MW CSP project in the Northern Cape province, South Africa. The project will be developed jointly by SENER and ACCIONA which shall provide engineering, procurement and construction services for the project.

The 100 MW project will sell electricity to Eksom through a 20-year power purchase agreement once it is fully commissioned in H2 2018. The Kathu Solar Park project will employ Sener patented parabolic trough reflectors and a molten salt storage system with 4.5 hours thermal storage capacity.

The project was allotted to ENGIE (formerly GDF Suez) and its partners during the third round of South Africa’s Renewable Energy Independent Power Producers Programme (REIPPP) auctions, with an investment of more than €500 million.

This project will be located near KaXu Solar One, which was the first solar thermal power project in South Africa. Both these companies have considerable experience in the development of solar thermal power projects. For both Sener and Acciona, this will be their second solar thermal project to be developed in South Africa. They worked together earlier on the Bokpoort plant (Upington), which is also a turnkey project employing Sener trough and a molten salt storage system. Bokpoort plant is expected to be commissioned by end of this year.

10/26/2016 0 comment

Renewable Energy

South Africa Likely To Achieve 5.6 GW Wind Energy Capacity By 2020

written by saurabh

According to the new report released by GlobalData, South Africa has immense potential for wind installations over the next four years.

The research and consulting firm GlobalData report states that more than 3 GW wind energy is expected to be installed by 2020 which will bring country’s cumulative wind capacity to 5.6 GW.

The report also states that majority of the capacity addition occurred in the last few years with 30 MW installed in 2013, 606 MW in 2014 and 483 MW in 2015. Until 2012 wind industry was almost non-existent with just 10 MW cumulative wind capacity installed.

According to GlobalData analyst Pavan Vyakaranam, South African wind energy market is still new even after large capacity additions in the past few years and has a huge potential for growth. He that country needs a system to determine wind speeds and other factors to plan installations, future developments and infrastructure in line with the available wind potential at different locations and sites.

GlobalData states that South Africa’s wind industry has the potential to push the country closer to reaching its climate targets. In 2015, South Africa submitted its Intended Nationally Determined Commitments (INDC) ahead of the 21st Conference of Parties (COP21) with an aim to limit the green-house gas emissions by striking balance between the much-needed development of power capacity and emissions arising from development.

Vyakaranam continues, “The energy sector is currently the largest source of greenhouse gas emissions in South Africa, emitting close to 250 million tonnes (MT) of carbon dioxide equivalent. With more capacity additions underway, wind power will account for reductions to greenhouse gas emissions in South Africa by an estimated 6.4 MT in 2020 and then 12.7 MT in 2025.”

Wind energy capacity addition will be driven by South Africa’s landmark Renewable Energy Independent Power Producers Procurement Programme (REIPPPP). Last year, the Minister of Energy, Tina Joemat-Pettersson, announced that she would approach the National Energy Regulator (NERSA) to make arrangements to offer an additional 6.3 GW in future auctions.

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08/30/2016 0 comment

Renewable Energy

South African Utility Eskom Refuses To Sign 100 MW CSP Deal

written by saurabh

Eskom has landed the first blow to the South African renewable energy market.

SolarReserve-backed concentrated solar power project of 100 MW capacity will not be able to inject power into the grid thanks to a refusal by Eskom to sign a 20-year power purchase agreement with the project.

The decision not to signed the PPA spells doom for the project which represents R50 billion (US$3.8 billion) in investment.

The refusal to sign PPA comes days after Eskom openly stated that it will no longer sign PPAs with any renewable energy projects. The utility stated that there was excess renewable energy going into the grid which has also increased the cost of power.

SolarReserve had won the rights to develop the project through competitive auctions under the Renewable Energy Independent Power Producers Procurement Programme. The 100 MW project was secured at a tariff of US¢12.4/kWh. The project also has 12-hour storage facility based on molten salts.

In the past, Eskom has expressed difficulty in absorption of the rapidly increasing renewable energy capacity in the country due to transmission capacity constraints. The utility recently secured funding to strengthen power grid. The African Development Bank (AfDB) announced a $1.34 billion loan to South African utility Eskom for the expansion and strengthening of its transmission network.

The refusal to sign a PPA has also raised doubts about the future of the REIPPP programme. Last year, the Minister of Energy, Tina Joemat-Pettersson, announced that she would approach the National Energy Regulator (NERSA) to make arrangements to offer an additional 6.3 GW in future auctions.

08/16/2016 0 comment

Renewable Energy

South Africa’s Largest Solar PV Project Completed

written by saurabh

South Africa’s largest solar power project has now achieved full operational capacity giving a major and yet another boost to the country’s landmark Renewable Energy Independent Power Producers Procurement Programme.

Earlier this month, South Africa’s energy minister launched a 90 MW solar photovoltaic (PV) power project in the Northern Cape province. Combined with an 85 MW project at the same location the entire complex, of 175 MW capacity, is the largest solar power project in the country, an perhaps the African continent and the southern hemisphere.

The De Aar projects, that form the 175 MW solar power complex, have been developed by Solar Capital, a subsidiary of Phelan Holdings. The projects were secured by the company through the competitive auctions under the various phases of the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP).

The entire complex is spread over 473 hectares and includes over half a million solar power modules. Power generated from the complex will be able to power about 75,000 homes in South Africa. Chairman of Phelan Holdings at the launch of the new project said that, “The Northern Cape of South Africa has some of the highest irradiation levels in the world, with the location of this facility boasting 2168kWh/m². This allows the abundant sunlight in the region to be converted into green energy to be transferred to the national energy grid.”

The REIPPPP has been very successful so far and, as a result, the South African government, last year, decided to increase the capacity addition target under the programme. The initial plan under the REIPPPP was to offer just 3,725 MW, however, the response of the developers has clearly been overwhelming. In April last year, the energy minister announced that she would approach the National Energy Regulator (NERSA) to make arrangements to offer an additional 6.3 GW in future auctions.

03/21/2016 0 comment