The names of 19 bidders - who have been selected as the preferred bidders for Window 2 of the Renewable Energy Independent Power Producers (IPP) programme that will contribute to South Africa's energy mix - were announced on Monday.

The bidding for window 2 closed on 5 March with the total 79 bids received. These bids amount to 3 255MW while the cap was at 1 275MW.

"In this window, the department received 79 bids of which 51 met the qualification criteria as per the Request for Proposals. Given the megawatts limitation and competition, only 19 bidders were selected as preferred bidders for Window 2," Energy Minister Dipuo Peters said in Pretoria on Monday.

Integrated Resource Plan

The Integrated Resource Plan (IRP2010) places specific emphasis on broadening electricity supply technologies to include gas, imports, nuclear, biomass, renewables (wind, solar and hydro), in response to both the country's future electricity needs as well as reduce its CO2 emissions.

South Africa wants to procure 3 725MW of renewable energy through this process.

According to the IRP2010 - which is a 20-year projection on electricity supply and demand - about 42% of electricity generated in South Africa is required to come from renewable resources. The department has set aside 100MW of the 3 725MW for smaller projects of less than 5MW.

The department has noted that under window 2, the level of commitment to economic development has improved compared to window 1. "More communities will benefit through employment or as shareholding in these projects," said the minister, adding that most bidders in window 2 will establish community trusts aimed at developing surrounding communities.

Projects allocated

Of the selected bidders, nine were selected for the solar photovoltaic technology, seven for wind, two for small hydro and one for concentrated solar thermal (CSP).

For Solar photovoltaic 417MW have been taken up by bidders with the maximum MW allocated for round 2 at 450; for wind 562.5MW has been taken up with the maximum allocation at 650MW.

For small hydro 13.3MW has been taken up from a maximum allocated for round 2 at 75MW while for CSP the allocated maximum 50MW has been taken up. In the 2nd window a total 1 043.9MW has been taken up by bidders.

Japser Power Company, Solar Capital De Aar 3 and Sishen Solar Facility were among the bidders selected for solar photovoltaic technology; while West Coast 1 and Grassridge form part of the 7 selected for wind and Stortemelk Hydro (Pty) Ltd and Neusberg Hydro Electric Project A were selected for small hydro. For CSP Bokpoort CSP project was selected.

A full list of bidders is available on the Independent Power Producers programme website.

Growing the economy

Peters said government saw the programme as an opportunity to grow the economy given the numbers of unemployed people while the procurement of alternative energy is also aimed at alleviating energy constraints.

The programme also seeks to make provision for local content in the provision of alternative energy sources while the bids were evaluated by technical, financial, legal and international reviewers.

What the department had noted, said Director General Nelisiwe Magubane, was that there were "significant" changes in several areas like pricing whereby in solar photovoltaic in window 1 on average was at about 2.75 per kWh. "We've seen a significant reduction in price of about R1.65 per kWh for window 2," she said.

Additionally there have been significant increases in the local content from 28.5% in window 1 to 47.5% in bid window 2 in solar photovoltaic technology.

"Job creation per province, we've seen a small reduction from bid window 1 but the bidders have indicated that on the total 7 059 jobs created in the construction period and 328 jobs created in the operation of the life of the plant," said Magubane.

In the first window some of the challenges faced by bidders were that they had trouble reaching the financial close, of which June is the financial close for window1 project proposals.

Appeal to financial sector

Peters appealed to the country's financial sector to provide financing to bidders.

"The success of renewable energy hinges on the financial sector," she said, adding that bidders that were having trouble before the financial close to speak up. "I would want to appeal to those bidders that are already experiencing challenges to come to the fore. It is an appeal for the benefit of the number of jobs that will not be realised if there's no financial support," said Peters.

The minister said there had been informal conversation regarding companies experiencing financial strain. "With them not coming to the fore this would mean that we're not going to deliver on the megawatts that we want," she said.

Last year, the Department of Energy announced 28 preferred bidders, out of a total of 53 applications for the IPP bid process in the first window.

Ompie Aphane, Deputy Director General for Electricity, Nuclear and Clean Energy at the department said the department was not sure of the amount of projects that were in financial strain.

In December, the Industrial Development Corporation (IDC) announced that it will finance 12 of the 28 preferred bidders to contribute to the country's energy mix. The financing will be to the tune of R5.2-billion. Meanwhile, Peters said the department has started talking to financial institutions.

The minister called on prospective bidders for the remaining three windows that they need not necessary own the land on which projects will operate on. Bidders could co-exist. "We don't want to lose arable land," said Peters adding that bidders could share the same piece of land with farmers.

The department has yet to decide on when bidding will commence for projects to take part in window 3.

Source: BuaNews

South Africa may be able to tap into thousands of megawatts in renewable energy when the massive Inga hydro-electric project in the Democratic Republic of Congo (DRC) goes live.

The Department of Energy's chief director of clean energy, Mokgadi Modise, said a treaty that would make this possible, outlining the roles and responsibilities of the different actors, was being finalised.

Modise was speaking at a media briefing during the Africa-European Union Energy Partnership's first stakeholder forum in Cape Town on Wednesday.

Potentially largest project in the world

The Inga hydro-electric project on the Congo River could become the largest hydro-electric project in the world, and is expected to generate a massive 40 000MW of electricity - more than the current electricity generation in South Africa.

Modise said the South African negotiating team was being led by the Department of International Relations and Co-operation and included the Department of Public Enterprises, the Department of Energy and the National Treasury.

She said the project would help more South Africans access electricity while significantly boosting African regional integration.

Africa-EU Energy Partnership

According to the government's Integrated Resource Plan, a 20-year projection on electricity supply and demand, about 6% of electricity generated in the country will be required to come from hydro resources.

Modise added that the Finnish and Austrian governments were funding nine energy-efficiency and renewable energy projects in South Africa.

The Africa-EU Energy Partnership, created in 2007, is a partnership between business, government and civil society to find ways of meeting sustainable energy challenges on the continent. The partnership has 54 African and European members.

In Vienna in 2010, the partners signed a declaration setting out targets, to be met by 2020, for energy access, energy security, energy efficiency and the adoption of renewable energy.

The partnership's stakeholder forums - of which the Cape Town meeting is the first - are intended to enable members to explore ways of achieving these targets.

Source: BuaNews

US independent power provider Hydro Alternative Energy is in talks with the City of Durban on plans to develop a world-first project that would harvest hydrokinetic energy from the fast-flowing Agulhas current off South Africa's KwaZulu-Natal coastline.

Senior company representatives were currently holding talks with eThekwini Municipality officials on the project, Florida-based Hydro Alternative Energy (HAE) said in a statement on Monday.

HAE said the municipality had given its in-principle support for the project, which would be undertaken in stages, the first stage involving the identification of suitable sites for mooring offshore power generation systems, followed by requests for the necessary environmental permits and power generation licences.

The plan is to develop a US$20-million 1-megawatt demonstration unit, after which additional units 8 MW units would be built "and likewise submerged, approximately 30 metres (98 feet) below sea level, to prevent interference with shipping", the company said.

'One of the most consistent currents in the world'

"The Agulhas is one of the most consistent currents in the world," Derek Morgan of eThekwini's energy unit told The Mercury newspaper. So, if the ocean current generation was to happen, Durban would be an ideal location to start harnessing it.

"If we can get it right, it has the potential to completely transform the city into a green energy location for investment," Morgan said.

'Never been done before'

Company co-CEO Mark Antonucci said that generating electric power from sea currents had never been done before. "All previous sea and wave generation technologies have been tidal based.

"We are very excited about our continued meetings and discussions with our Municipality of eThekwini partner to move this project forward to reality," Antonucci said.

"We again note the commitment of Durban and the eThekwini Municipality to substantially reducing their carbon footprint and becoming 'greener', with the eThekwini Municipality having recently hosted the 17th Conference of the Parties [COP 17] to the United Nations Framework Convention on Climate Change."

SAinfo reporter

South Africa's Cabinet has approved a plan to capture and store carbon dioxide, a major greenhouse gas, in deep geologic formations.

"Cabinet endorsed the Carbon Capture and Storage Roadmap," Performance Monitoring and Evaluation Minister Collins Chabane said at a media briefing in Pretoria on Friday.

Carbon capture and storage has been identified in the government's long-term mitigation scenarios plan as one of the options to reduce carbon dioxide emissions, one of the main drivers behind global warming.

"One of government's strategic objectives is mitigation against carbon emissions and adaptation to the impact of climate change," Chabane said following the Cabinet's latest fortnightly meeting.

South Africa relies heavily on fossil fuels (coal, gas and oil) for its energy production.

Chabane said South Africa had voluntarily committed to reduce its CO2 emissions by 34 percent by 2020, and by 45 percent by 2025, on condition that the requisite technological and financial support was provided.

"Carbon capture and storage can reduce CO2 emissions by 80 to 90 percent ... particularly CO2 from sources such as electricity generation plants, coal-to-liquid plants and cement manufacturing plants," he said.

Carbon capture and storage involves capturing CO2 from a point source, such as a power station or coal-to-fuel plant; transporting it, usually by pipeline; and pumping it down a borehole into porous rock formations deep underground, where it is contained and stored.

A recently-released Geological Storage Atlas has identified potential carbon capture and storage areas in South Africa.

It is understood the next step in the carbon capture and storage "roadmap" process will be a test injection of CO2 into a suitable geologic formation, to determine whether such storage can be safely undertaken in South Africa.

Sapa

Opportunities, incentives, regulations, assistance.

20 April 2012

The e-tolling system on Gauteng province's main highways will become operational on 30 April as planned, despite opposition from motorists, business, unions and a pending court challenge, says South African National Roads Agency (Sanral) CEO Nazir Alli.

Addressing journalists in Pretoria on Thursday, Alli said there was no chance that the implementation of the e-tolling system would be delayed, as this would only result in additional costs.

He said the number of motorists who had registered for the system had increased to 500 000.

Last week, the agency gazetted that motorists who did not register for e-tags would end up paying more per kilometre.

No arrests or impounding of vehicles

Alli said it would be a criminal offence for a motorist to use the toll roads and not pay the tariffs, adding that South Africans could not pick and choose which laws they wished to obey and which they did not.

However, Alli dismissed media reports that there would be "Sanral police" serving unregistered motorist with tickets. He said Sanral did not have the power to arrest anyone or to impound anyone's vehicles.

Instead, he said, Sanral would use the current law enforcement agencies to warn motorists of the implications of their non-compliance.

Full consultation 'well in advance'

Alli said the issue of tolling some of Gauteng's main highways was not new, but had been part of the Gauteng Freeway Improvement Project from the time the plan was introduced in 2007.

The matter had been approved by Cabinet. Sanral had also had to get permission from all the relevant local authorities, and public consultations had been held, and this had happened long before construction started, Alli said.

He said Sanral had documents to prove that extensive consultation on the project was undertaken within government, with business and labour, and with the public, and that presentations on the project were made when it was announced.

'Nothing to do with Public Investment Cooperation'

He rejected allegations that the government was pushing ahead with the system despite opposition because the state-owned Public Investment Cooperation (PIC) had acquired bonds in Sanral.

The PIC manages investment funds on behalf of public sector entities. Among its clients is the Government Employees Pension Fund.

Alli said the PIC did not buy Sanral-issued bonds only. "It invests in other state-owned entities, which have a mandate to bring about development in the country."

'How else fund the road maintenance backlog?'

He said the question South Africans should be asking was how the country was going to fund its lagging infrastructure and transport system, adding that there was a R149-billion backlog on maintenance of the country's roads.

He said the e-tolling system worked and provided at least one solution to the country's fiscal and infrastructure development and environmental challenges.

Quoting statistics, Alli said that out of the 606 000 kilometres of public road in the country, 3 120 kilometres were tolled.

He added that the most fundamental contribution of the e-tolling system had been job creation, as at least 20 000 jobs had been created in the construction phase of the project.

Now the project had created 1 200 permanent jobs in toll revenue collection and other areas.

Also speaking at the briefing, Cabinet spokesperson Jimmy Manyi said the government had done a lot to accommodate the public, especially the poor, in that taxis and buses were excluded from paying the tolls, while the middle class had also been considered because there was a R550 cap for regular road users.

Source: BuaNews

Private energy company Cennergi aims to produce a massive 16 GW of renewable energy generation capacity projects in southern Africa by 2025, its founders said at the company's official launch in Johannesburg last week.

A joint venture between South Africa's mining group Exxaro and India's largest private power utility Tata Power, Cennergi already runs five renewable energy projects in the Northern Cape, Limpopo, Eastern and Western Cape provinces.

The new 50:50 partnership will particularly be targeting the expanding energy markets in South Africa, Namibia and Botswana, with a focus on the investigation, development, ownership, operation, maintenance, acquisition and management of power generation projects.

SA's renewable energy procurement programme

Cennergi CEO Thomas Garner told guests at Wednesday's launch that the company had submitted solar and wind bids for the second bidding round under South Africa's renewable energy Independent Power Producer (IPP) procurement programme, which closed on 5 March.

Exxaro head Sipho Nkosi said Cennergi would be looking at partnering with South African state power company Eskom.

He said the idea by Exxaro, one of South Africa's leading coal producers and Eskom's number one supplier, to venture into energy had been in the pipeline for the past two years.

"We felt that as coal producers in South Africa, we should start immersing ourselves in renewable energies, because we need to continue to be responsible corporate citizens in South Africa," Nkosi said. "The whole continent of Africa is well endowed with renewable energy and ... these are the organisations that can harness these opportunities."

Energy needs 'call for more than one player'

Tata Power MD Anil Sardana said the demand for energy in southern Africa necessitated that there should be more than one player in the sector. Given that, arduous challenges in meeting the continent's energy needs remained.

"Therefore, it's important for people to bring all the inputs together, not just to contribute to the space, but do it effectively," Sardana said, adding that Tata Power currently served more than 1.7-million customers in Delhi and Mumbai.

South Africa's Integrated Resource Plan for the energy sector envisages 3 725 MW of renewable energy being added to the country's power mix over the coming few years.

The Department of Energy's Kevin Nassiep, who delivered a speech on behalf of Energy Minister Dipuo Peters, said projects such as Cennergi were "poised to accelerate the development of our electricity sector, and will propel our green energy revolution to a new level."

He said it was no coincidence that South Africa was moving with speed to "green" its economy, considering that the country had just introduced a New Growth Path that sought to deliver five-million new jobs by 2020.

The Industrial Policy Action Plan and the signing of a new local procurement accord last year bore testimony to the government's seriousness about boosting industry investments in South Africa, Nassiep said.

Source: BuaNews

First-world infrastructure plus a vibrant emerging market equals huge investment potential!

Nthambeleni Gabara

With hefty fuel price hikes set to kick in on Wednesday, Energy Minister Dipuo Peters has urged South Africans to be economical in their fuel use - and creative in finding ways to ease the impact of the increases.

From midnight on Tuesday, the retail price of 95-octane petrol will increase by 71 cents in Gauteng province and 66 cents at the coast, while the retail price of diesel (0.05 percent sulphur) will rise by 51.9 cents in Gauteng at 47.6 cents at the coast.

The wholesale price of illuminating paraffin will increase by 20.6 cents at the coast, and by 26.6 cents in Gauteng.

Public transport, lift clubs

Peters encouraged South Africans to be economical in their fuel use, while taking steps to ease the impact of the fuel prices increases.

"You are encouraged to prioritise fuel efficiency in all your daily activities with the aim of reducing fuel consumption. Avoid speeding, and use public transport whenever it is practically possible to do so."

Peters said the use of lift clubs could go a long way in reducing people's transport costs.

'Not within our power to prevent'

"These increases are not within the government's powers to prevent," Peters said, noting that, as a non-oil producing country, South Africa was a price taker and depended on imports.

"Fuel prices are dictated by issues such as global political developments among oil producing countries and the big economies of the world.

"While global developments and activity are more promising than a year ago, other issues such as the tensions between the United States of America and some of the oil producing countries have contributed to higher crude prices."

Local factors affecting fuel prices include the annual 20 cents and 8 cents per litre increase in the Fuel Levy and Road Accident Fund respectively, announced by Finance Minister Pravin Gordhan in his Budget speech in February, as well as the Transnet pipeline tariff increase.

Source: BuaNews

President Jacob Zuma met with the presidents of Russia and Brazil on the margins of the BRICS summit in Delhi, India on Wednesday, urging both countries to become involved in realising South Africa's new infrastructure plan.

The plan, announced during Zuma's State of the Nation address in February, includes geographically focused infrastructure projects cutting across rail, road, water, ports and logistics.

The Presidency said in a statement that, during his talks with Russian President Dmitry Medvedev, Zuma expressed interest in co-operating with Russia on engineering, especially in training South Africans in Russia.

Co-operation in mining

Zuma also discussed possible Russia-South African co-operation in mining, especially on the operation of an iron-ore rail line between Sishen in the Northern Cape and Saldanha Bay in the Western Cape.

"President Zuma reiterated the commitment he made during his state visit to Russia in August 2010 to strengthen co-operation on mining and mineral resource beneficiation in South Africa and Africa," the Presidency said.

The South African government adopted a minerals beneficiation strategy in 2011, and the implementation plans are being finalised for key value chains, including steel, energy, jewellery and platinum group metals.

Construction of nuclear plants

According to the Presidency, Russia has expressed interest in co-operating with South Africa in the construction of nuclear power plants. South Africa's Integrated Resource Plan indicates that nuclear power should form an important part of the country's energy mix by 2030, with the first plant to come online as early as 2023.

The procurement and bidding processes for South Africa's planned nuclear plants are expected to begin later this year.

The Presidency said an invitation would be extended to incoming Russian president Vladimir Putin to undertake a state visit to South Africa.

Co-operation in transport, construction, finance

In his meeting with Brazilian President Dilma Rousseff, Zuma welcomed the growth in trade relations between South Africa and Brazil, and pushed for further co-operation in rail, road, transport and logistics infrastructure.

"We are very happy with the partnership between Airports Company South Africa and INVEPAR of Brazil to run Brazil's most prominent international airport of Guarulhos for the next 20 years," Zuma said.

"More such ventures and opportunities could be created between South Africa and Brazil, to the benefit of both countries' industries.

"We are also happy that Brazil's largest construction company, Odebrecht, is due to establish an office in South Africa," Zuma said. "This opens up possibilities for greater private sector collaboration."

Zuma also noted the growing co-operation in the financial sector, with the Development Bank of Southern Africa having established a working relationship with its Brazilian equivalent, BNDES.

Diversifying SA's energy mix

South Africa also seeks co-operation with Brazil in energy, both in terms of sourcing and in energy mix, to help diversify the country's energy supply.

Brazil boasts some of the world's largest oil and gas reserves, and is the second-largest producer of ethanol in the world.

"Brazil also offered to co-operate with South Africa in social development issues, especially on the fight against hunger as well as on defence matters," the Presidency said.

On Thursday, Zuma will join Rousseff, Medvedev, Chinese President Hu Jintao and Indian Prime Minster Manmohan Singh in deliberations under the theme "BRICS partnership for Global Stability, Security and Prosperity".

SAinfo reporter

Open for business

First-world infrastructure plus a vibrant emerging market equals huge investment potential!

More than 30 South African businesses are taking part in a five-day initiative aimed at creating market penetration for local value-added products and services in Russia.

Led by the Department of Trade and Industry (DTI), the Trade and Investment Initiative follows on President Jacob Zuma's state visit to Russia in August 2010, which recommended efforts to increase trade between the two countries.

Oil and gas, agro-processing, metal and aerospace enterprises, as well as the mining and capital equipment sectors, are participating in the initiative, which kicks off on Monday and includes mini-exhibitions and business-to-business meetings.

South Africa's export basket to Russia is currently dominated by primary sector products, particularly agricultural products such as citrus fruits, apples and pears. Russia's exports basket, by contrast, is concentrated more on fabricated products.

Trade and Industry Minister Rob Davies said there had been substantial growth in total trade between South Africa and Russia between 2006 to 2011, from R2.5-billion to R3.2-billion.

"South African exports increased from R670-million in 2006 to R2.02-billion in 2011," Davies said last week.

Russia is the world's seventh-largest economy by nominal GDP and the sixth-largest by purchasing power parity. It is South Africa's 41st biggest export destination.

Source: BuaNews

South Africa has called on the rebel soldiers claiming to have effected a military coup in Mali to cease hostilities and release their hostages, and on government forces to maintain their discipline and resolve their concerns peacefully through internal procedures.

South Africa's Department of International Relations and Cooperation on Thursday expressed concerned over the ongoing attacks carried out in Northern Mali by the secessionist National Movement for the Liberation of Azawad (NMLA), and their impact on the deteriorating humanitarian situation in the region.

Briefing journalists in Pretoria, Deputy International Relations and Cooperation Minister Ebrahim Ebrahim said South Africa "condemns any attempt to seize power through the use of force. We reiterate our conviction that no party should come to power through unlawful means."

United Nations Secretary-General Ban Ki-moon said he was following the unrest in Mali with "deep concern" after mutinous soldiers were reported to be firing weapons outside the presidential palace.

Rebel troops 'take control of the country'

Rebel troops appeared on Malian state TV on Thursday to announce that they had seized control of the country, hours after attacking the presidential palace.

The soldiers said a nationwide curfew was in force and that the constitution had been suspended.

"It is our desire that the mutiny is addressed in a manner that does not jeopardise the overall security situation in Mali," Ebrahim said. "This is particularly important in view of the security challenges in the North."

Reports say the unrest began at the Kati military camp in a suburb of Bamako. Soldiers fired their guns into the air after a meeting with Mali's defence minister that apparently went badly. At least two soldiers were wounded during the protest.

Call for release of hostages

Ebrahim said that senior military officers and political leaders being held hostage "should be released immediately as an indication that the mutineers have the best intentions for the country and the army.

"The media should also be allowed to resume broadcasting to ensure calm and reassure citizens throughout the country," Ebrahim said, adding that it supported the African Union's determination to support mediation efforts in search of a solution to the situation.

"It is critical that the various security and humanitarian issues confronting Mali are resolved urgently in order to enable the April 2012 elections to be held freely and fairly".

The South African embassy in Bamako is closed, but all staff members are reported to be safe.

Source: BuaNews