Energy News and Developments

[Cuberman]

Originally Posted by Diggerdog

This is good!

SA and Lesotho to build 1 200 MW hydropower plant
COMMENT PRINT EMAIL |

By: Brindaveni Naidoo
11th August 2011

Updated 27 minutes agoTEXT SIZE South Africa and Lesotho on Thursday signed an implementation agreement for the second phase of the R15-billion Lesotho Highlands Water Project (LHWP) and committed to building a hydropower station with an installed capacity of between 1 000 MW and 1 200 MW.

The hydropower plant would be operational in 2018, and would see some 200 MW supplied for Lesotho’s power needs, with the remaining power transmitted to South Africa.

South African Water and Environment Affairs Minister Edna Molewa told Engineering News Online that Cabinet had approved the project and that the two countries would now sign a memorandum of understanding (MoU) under the auspices of South Africa’s Department of Energy.

The Lesotho government also approved the project, and draft agreements were ready, Lesotho Natural Resources Minister Monyane Moleleki said in an interview in Maseru.

“The MoU to be signed between the two countries will not only focus on hydropower, but will see both countries look at projects on renewable energy, including solar and wind,” he said.

Both Ministers remained confident that the skills needed for the second phase of the project were available.

“There is sufficient capacity between both countries, and where or if necessary we will deploy required skills. But it is key to remember that we have Eskom coming on board on this project,” Molewa explained.

The LHWP would strengthen regional integration by using water as a catalyst for socioeconomic development, as well as to advance economic links with key African partners.

“The nature of our cooperation is aimed at mutual development of our countries’ water sectors as a foundation and a catalyst for modernised and integrated economies. It embodies the Nepad principles for development and Africa’s renaissance to eradicate poverty and underdevelopment.”

Phase two of the LHWP also comprises a water delivery system to augment the delivery of water to South Africa.

The system comprises the Polihali reservoir on the Senqu river, and a water conveyance tunnel connecting Polihali reservoir with the Katse reservoir. It would also see the development of key infrastructure including access roads to the project sites and camps, as well as power transmission lines and administrations centers, including social and environmental projects and programmes.

This phase would also include a pump storage scheme and associated transmission lines.

Diggerdog, you have a link to this info on the web?

[romanSA]

SA evaluating 53 mostly wind, solar bids worth R7bn, next bid window set for March

By: Terence Creamer

14th November 2011

A total of 53 bids, representing some 2 100 MW of potential capacity, were received by the Department of Energy (DoE) during the first bidding 'window' that closed on November 4 - the tender is for the procurement of 3 725 MW of renewable energy from independent power producers (IPPs) by 2016.

Director-general Nelisiwe Magubane said government was pleased with the response and indicated that the process had been designed with the possibility of having as many as five bid windows, with the next round currently due to close on March 5, 2012.

However, she also indicated that discussions were under way with the Department of Environmental Affairs, which was having some difficulty in processing all the environmental authorisations required for the next round. Therefore, the date might be adjusted to ease that constraint, as the absence of environmental approvals was seen as an immediate “deal breaker”.

Updating the media on the process, deputy director-general Ompi Aphane said that half of the offers related to wind projects, while 48% were for solar developments, both photovoltaic and concentrating. The balance of the bids related to small hydropower plants, and it was anticipated that the other technologies (such as biogas, biomass and landfill gas) might feature more strongly when the so-called small-projects tender was released later this year. This tender would have lower thresholds, but would only cater for projects that had capacities of less than 5 MW.

Should all the capacity currently on offer be developed, it would involve combined investments of around R7-billion, with more than half of the capital likely to flow from foreign direct investors. However, the evaluation process was still at the early stages, with the economic development aspects currently under consideration. Only once these criteria had been met would the bid price, which carried a 70% adjudication weighting, be considered. The 30% balance covered such aspects as job creation, local content, management control, preferential procurement, socioeconomic development and ownership – at least 40% of a project would need to be owned by South Africans to be considered as compliant.

The projects on offer were sited across all nine provinces, besides Mpumalanga, with most of the interest arising for developments in the Northern Cape, Eastern Cape and Western Cape provinces.

Aphane said the evaluation process was under way in a “secure” location and was being conducted by technical specialists with no direct association to the DoE and its officials. Once this evaluation was completed, it would be handed over to the department for adjudication.

The adjudication process itself would be subjected to an internal audit, as well as a review, which would be conducted by an independent, global auditing firm.

Preferred bidders should be identified by the end of November, or before the end of the upcoming global climate conference, which would take place in Durban from November 28 to December 9.

A six-month period would be allowed for developers to reach financial closure, which would include the signing of a power purchase agreement with Eskom. Aphane, thus, believed that the first capacity could start producing during 2012, with most of the capacity from the first bid window being introduced by the end of 2013.


Edited by: Creamer Media Reporter



http://www.engineeringnews.co.za/art...rch-2011-11-14

[Enigma_za]

R30bn needed to maintain electricity infrastructure - EWN

Close to R30 billion will be needed for the maintenance of electricity distribution infrastructure nationwide.

The Energy Department presented an alarming picture to Parliament’s Energy Portfolio Committee on Tuesday.

The committee heard from a number of stakeholders on the challenges in the electricity distribution sector and discussed a way forward.

Chief Director of electricity in the energy department Thabang Audat said 2008 figures showed that R27.4 billion was needed for maintenance and that was escalating at R2.5 billion per annum.

187 municipalities are responsible for those costs.

He said networks needed to be improved to service delivery.

With 75 percent of the country being electrified, the poor are battling to pay rising tariffs.

There were huge revenue losses because of electricity theft and municipalities were urged to act on tip offs.



Maybe they should take cuts in thier salaries to help fund the maintenance!!!

[ardamir]

Any news on natural gas exploration in SA? Many public power utilities in Texas are building/planning new power plants that will run on natural gas. Its local, its cheap, and much cleaner than coal.

http://www.engineeringnews.co.za/art...gas-2012-03-15

Increased use of LPG could save SA ‘billions’ – Kaya Gas

If 1.2-million households in South Africa converted to liquefied petroleum gas (LPG) it would save the country some 55 000 MW of electricity every five years, Kaya Gas MD George Tatham said this week....

[Lydon]

Anglo eyes SA power plant project
20 minutes ago Reuters

Johannesburg - Anglo American [JSE:AGL] plans to build a 450 MW power plant in South Africa to supply electricity to its platinum subsidiary Anglo Platinum [JSE:AMS], Business Day newspaper reported on Wednesday.

The paper quoted the head of the company’s coal division in South Africa Norman Mbazima as saying the plant would cost more than $1bn, and that seven parties had bid to build the plant near Witbank in eastern Mpumalanga.

The plant, which is expected to start producing electricity in 2015, would reduce Amplats' reliance of power supply from state-owned Eskom and cushion it from large price increases.

A spokesperson for Anglo Thermal Coal could not immediately be reached for comment.

South Africa has been struggling to meet demand for power as construction of new plants meant to plug the shortfall have been delayed. Supply will remain vulnerable until the first units of Eskom's new stations become operational next year.

Source: Fin24

[Lydon]

Darling wind farm gets green light, but farmers are divided
THURSDAY APR 19, 2012

The hills of Darling are set to get a wind farm with 43 turbines between 80m to 100m high.

Called the Rheboksfontein Wind Energy Facility, the wind farm has been given the green light by the Department of Environment.

Most of the turbines will be erected on the farm Rheboksfontein, home to the vines that produce Ormonde wines.

But the approval of the 129MW wind farm appears to have split the community, with some farmers welcoming the project and others saying they will have nothing to do with it.

In one case the difference of opinion is between two brothers on neighbouring farms, one of whom will have nothing to do with the project and the other welcoming the wind farm as a means to earn rent and earn carbon credits.

Theo Basson, owner of the Rheboksfontein farm who is in favour of the project, said yesterday the bulk of the wind turbines would be built on his farm. "When I negotiated with the company that wanted to put it up, I said they had to exclude my highpotential vineyard soils. I've spent a lot of time in Europe marketing my wines and there are lots and lots of wind turbines there, and no one minds.

"The only drawback from wind power is that you can see the towers. Seems to me people don't care about the fact that it is clean energy."

He would get direct benefits from the wind farm as the developer, Moyeng Energy, partly owned by Investec, would pay him rent for the turbines on his land. "I hope to use them as carbon credits in wine production and get zero carbon status for my wine."

His brother, Nikolaas, on neighbouring Alexanderfontein wine farm, is apparently opposed to the project, and would not agree to have the transmission lines over his land. However, he would say only: "Alexanderfontein is my land and I'm not involved in the project at all."

Another farmer, Bodo Gents on the farm Doornfontein, who owns the Weskus Padstal, said he would not allow the transmission lines on his land. "The Darling hills have a historic valley. These turbines will be on my border. We want to put up a game farm here but that is on hold now because of this. It's one thing to put up a wind farm in the middle of the Karoo, but quite another to place it on a major scenic route," Gents said.

Peter Pentz, owner of the historic Groote Post farm, said: "Wind energy is a wonderful thing. I don't see the problem. I see wind farms all over Europe and it's quite magical. Please let it come and save the planet."

Tommie Potgieter, of Moyeng Energy, said the project still had to get several other approvals from other authorities before it could be built.

Asked what he would do if farmers would not give permission for the transmission lines, Potgieter said the question should be directed to Eskom. Eskom had not replied at the time of going to press.

Cape Times
Source: IOL Property

[Marsupalami]

awesomeness!!! - those turbines should be out on Dassen Island too - fok the penguins!

[Diggerdog]

SA energy programme attracting foreign investors

SA's first foray into renewable energy has every chance of success with billions of rands from foreign investment expected to flow into the country, says professional services firm PricewaterhouseCooper's.

'Investment in renewable energy encouraging'

The procurement programme launched by the Department of Energy (DoE) in August 2011 with an initial allocation of 3,725 MW across multiple technologies, has attracted developers, investors and engineering, procurement and construction contractors from across the globe including the US, Germany, Italy, Spain, France, China and India.

According to the advisory, while slower growth in some of these markets has forced developers to look beyond their own borders, the size and scale of the SA's procurement programme has made the market appealing to most developers.

The aim of the government's procurement programme from independent power producers is to stimulate renewable energy and environmentally sustainable economic development and job growth in SA as per its national integrated resource plan.

In December last year, the 28 preferred bidders in the procurement programme were announced.

Kasief Isaacs, PricewaterhouseCooper's (PwC) partner in the energy division, said the next milestone after the announcement of the round 2 preferred bidders expected early next week is assessing how many of the round 1 preferred bidders achieved financial close.

"While the preferred bidders and their partners are naturally reticent regarding progress, the law of averages dictate that some of these projects may not be able to meet the late June deadline to achieve financial close," Isaacs said.

Isaacs however added that, for the first round bidders who were on track to achieve their financial close timetable, the future looked promising, in that their first projects could be connected to the grid by June 2014.

"The Department of Energy seems to have the balance right so far in making initial allocation large enough to kick start the industry and attract some of the leading renewable energy companies in the world, while at the same time encouraging price competition between developers and deploying renewable energy in a phased manner," Isaacs said.

According to Isaacs, the department had also learned from other markets, and looked likely to avoid the challenges experienced elsewhere of too rapid expansion of renewable energy capacity at unsustainable tariffs and ultimately unsustainable cost to governments and consumers.

Renewable energy is an integral part of SA's energy mix for the foreseeable future based on the 20 year integrated resource plan for electricity promulgated in May 2011.

Based on the integrated resource plan for electricity, developers expect that an allocation of new capacity for renewable energy will be made available annually following the initial procurement programme although this has not been officially confirmed by the Department of Energy.

"The competitive bidding process will keep downward pressure on the tariffs proposed by developers while the qualitative criteria contained in the procurement programme maximises the chances of proposed developments ultimately being developed," Isaacs said.

He added that developers already active in the market were keen to expand their portfolio of projects for the next procurement window.

"While the majority of projects to date has been funded by South African lenders, developers have slightly more time to prepare for round 3, and are now evaluating the use of foreign debt and export credit agreements to off-set the higher cost of interest available in the South African market."

Compared to May last year when many developers and industry associations expressed disappointment by the lack of certainty and progress in the renewable energy programme, the industry, although still in its infancy, has its eyes firmly fixed on the future and the potential for developing renewable energy projects in the country.

http://www.businesslive.co.za/southa...eign-investors

[rubbercenter]

50 MW SA solar project part of Saudi group’s diversification drive
PRINT EMAIL |

By: Terence Creamer
5th June 2012

Saudi Arabian power and water group ACWA Power International has confirmed that the 50 MW Bokpoort concentrated solar power (CSP) project, which is proposed for the Northern Cape, will be its first investment in Africa.

The development, which has an estimated project cost of R4.5-billion, was selected along with 18 other preferred bids during the second-window evaluation under government’s Renewable Energy Independent Power Producer Programme (REIPPP), which took place between March 5 and May 21.

ACWA Power has a portfolio comprising 12 000 MW of power generation capacity, as well as desalination plants able to process 2.3-million cubic metres a day. Its portfolio currently spans Saudi Arabia, Oman and Jordan, while it has a project under development in Turkey.

ACWA CE Paddy Padmanathan describes the Bokpoort project as a milestone for the group’s geographical and technological diversification. He says the project will also be key to the group’s aspiration of expanding its total capacity to 30 000 MW by the end of 2014 and having renewables making up five per cent of it power portfolio.

The Bokpoort consortium also comprises black economic–empowerment (BEE) firm Invest in Africa Energy (IAE), which has a 30% shareholding, the Industrial Development Corporation (IDC), Lereko Solafrica Investment, Lereko Metier Solafrica Fund 1, Lereko Metier Sustainable Capital Fund, Kurisani Solafrica Investments and Solafrica Community Investment Company. The community shareholding will reportedly represent 10% of the project.

In addition, Investec, the Development Bank of Southern Africa and the IDC will provide the debt funding requirements of the project.

ACWA’s subsidiary NOMAC will operate the plant, which will be constructed by an engineering, procurement and construction consortium comprising TSK Electrónica y Electricidad, Acciona Infraestructuras, Acciona Ingeniería, Sener Ingeniería y Sistemas, all of Spain, as well as Crowie Concessions, of South Africa.

The Department of Energy expects the facility to incorporate 36,5% local content, create 662 construction jobs and 50 operational posts. It also expects the plant to deliver power at a cost of R2.51/kWh.

IDC SUPPORT

The greenfield development is one of several REIPPP projects being supported by the State-owned IDC, and it was the only CSP project to advance to the preferred-bidder stage during the second bid window.

During window one, two projects (the 100 MW KaXu Solar One and the 50 MW Khi Solar One, which are being developed by Abengoa and the IDC) advanced. The three projects have also absorbed the full 200 MW allocated to CSP under REIPPP.

Over the first two rounds the IDC supported a total of 36 bidders, of which 19 were named as preferred bidders – the window-one projects are due to reach financial closure by June 19, while those announced on May 21 have until December to reach closure.

The South African development finance institution has set aside R25-billion for various green projects over the coming five years, including the REIPPP projects that are meant to add 3 725 MW of renewable energy capacity to the South African grid by 2016.

The targeted financial close date for Bokpoort is the end of 2012, with the developers having set a commercial operation date for the third quarter of 2015.

The project will reportedly be equipped with the largest thermal storage capacity adopted for a CSP plant of its size, which should enable it to produce 200 GWh/y.

Padmanathan says ACWA has also sought to maximise BEE participation and that IAE will not only contribute local knowledge but also provide a platform for its skills-transfer plans.

IAE chairperson Enver Asmal says the project confirms and extends its longstanding collaboration with ACWA Power in the development of power projects in Southern Africa and will enable it to gain valuable power sector experience.

http://www.engineeringnews.co.za/art...ive-2012-06-05

[rubbercenter]

Infrastructure 100

Presenting the Infrastructure 100 - report on the most exciting infrastructure projects from around the world, as selected by independent judging panels due to their scale, complexity, innovation and impact on society.

KPMG’s Global Infrastructure practice, in conjunction with Infrastructure Journal, is pleased to present the Infrastructure 100 – a showcase of the most interesting infrastructure projects from around the world.

Of those 100 projects – all shortlisted for their scale, complexity, innovation and impact on society – 10 have been highlighted by the independent judging panels as notable projects in different infrastructure sectors.

They are:
Water – The Venice MOSE Flood Barrier, Italy;
Power – Green Power Express, USA;
Oil & Gas – Project Mthombo oil refinery, South Africa;
Renewable energy – Incheon Tidal Power Project, South Korea;
Rail – TAV high speed rail link, Brazil;
Roads – Hong Kong-Zhuhai-Macau bridge;
Other transport – Panama Canal extension, Panama;
Healthcare – CRCHUM P3 research centre, Canada;
Education – King Abdullah University of Science & Technology, Saudi Arabia;
Other Social Infrastructure – Greater Manchester Waste, UK.

blah, blah blah...and then...

Social, as well as economic, impact was never far from the judges’ minds – as with the Project Mthombo refinery which represents the centre piece of a new economic zone in the Eastern Cape Province.

http://www.kpmg.com/Global/en/Issues...cture-100.aspx

[Inertia]

Electricity distribution network collapse three years away

South Africans should expect more power cuts, as the distribution grid will gradually collapse from 2015 unless a maintenance backlog is addressed, an expert said on Thursday.

"We are three years away from collapse," Deon Louw, the deputy director of electro-technical services in Overstrand municipality, Western Cape, told MPs.

"It is going to collapse in stages, as some parts are older than others. We will see power failures."

Louw told public hearings on the electricity distribution industry --hosted by Parliament's portfolio committee on energy -- that the lifespan of a distribution network was 50 years, and said the various components of South Africa's had an average age of 47 years.

[rubbercenter]

SA and US sign energy deal

The Export-Import Bank of the United States and South Africa have signed a $2 billion Declaration of Intent (DoI) to help advance the country's green energy schemes.

http://www.linksouthafrica.com/Modul...7-bc7217d5d7af

[ToxicBunny]

That is actually awesome news...

[SpringBokBoi]

[Kwazimoto]

Fracking possible as
moratorium on shale gas
exploration lifted

"According to an initial study commissioned by
the U.S. energy information administration,
South Africa has 485 trillion cubic feet of
technically recoverable shale gas resources,
most of which are located in the vast Karoo
Basin."

http://www.timeslive.co.za/scitech/2...oration-lifted

Tree huggers must just sit down nxa!

[ToxicBunny]

No, the tree huggers won't just sit down.

Neither will us right minded people. I am NOT impressed that this is being even thought of tbh.

[Frantic777]

Awesome news! SA needs this.

[Marsupalami]

just wait, the govmnt will release some strategy in the wake of Marakana to say they will make a state company to extract it under the guise of SA's new energy/mining future ( as our production of gold dries up), thus immesurably fucking up the karoo. they will say the endeavour will herald a new start, a new "contract " with workers through share schemes etc and make lip service to a more socialist miner friendly system for the workers. They will then fuck the whole thing up, AND they will destroy the ecosystem too,but ultimately they will publicly challenge any naysayers to think of how else to re-employ 500000 workers when mines are shut down all over the place.

[Lydon]

RENEWABLE ENERGY PROGRAMME TO BRING R47BN IN INVESTMENT
Written by eProp@News

The Department of Energy says it is expecting R47 billion to be invested in the country through Window 1 of the Renewable Energy Independent Power Producer Programme (REIPPP).

The department introduced the REIPPP in August 2011, with the first bid submission for Window 1 scheduled for 4 November 2011.

The outline for the first 28 preferred bidders -- who were announced on 7 December during COP17 -- is now in place and the department says it is ready to sign contracts with the bidders, which will unlock the massive investment.

Window 1, which sought 1 400 megawatts of renewable energy, gave bidders (in wind and solar projects) until June this year to reach financial close, but due to issues - including approvals by government institutions - the date had been postponed.

President Jacob Zuma announced in his State of the Nation Address a massive infrastructure plan comprising various development projects. One of the Strategic Integrated Projects includes green energy in support of the South African economy.

Briefing reporters on Monday, Energy Minister Dipuo Peters said the department had been working closely with the preferred bidders in Window 1 to conclude all contract documentation, including the Power Purchase Agreement and Implementation Agreement.

"The delay for financial close was largely related to government approvals. We apologise for shifting the timeframes," said the minister.

The delays in government approvals were caused by the need to have fully populated contracts to be presented to the relevant structures within government for approval.

"I'm pleased to announce that the country will receive about R47 billion of investment in renewable power generation through Window 1 preferred bidders," said Peters.

The investment will provide job opportunities, especially for those in rural where renewable power plants are located.

According to the Integrated Resource Plan (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 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.

Originally, 53 bids amounting to 2 128 MW were received across wind, solar PV, solar CSP and small hydro. The evaluation resulted in 28 bids, with a total MW of 1 416 being selected as preferred bidders in the first window.

The wind and solar PV projects are expected to be integrated into the country's national energy grid during 2014.

"The signing of agreements for Window 1 preferred bidders will take place on 5 November 2012," Peters said, adding that bidders were expected to honour the commitments made in their bids.

Should bidders fail to comply with the commitments, penalties such as the termination of the power purchase agreement, will be implemented.

Peters said she had received concurrence from the National Energy Regulator of SA (Nersa) for additional allocations to the renewable programme, base load generation and the Medium Term Risk Mitigation Plan generation.

Earlier this month, Peters said she was considering a second determination that would provide additional megawatts in the renewable energy space.

"I will be promulgating these determinations before the end of the year," said Peters. -

Source: eProp

[Marsupalami]

cant wait - lets get this going man!! - for our own collectve good ( SA is like, in the top 20 worst polluters - eish! ) Lets also aim to build capacity and manufacture-to-export the machinery to other african countries!
Biomass in particular!