Energy Snippets

Time for South Africans to take climate change seriously

Addressing parliamentary members during the SONA debate, President Cyril Ramaphosa emphasised the need for citizens to take climate change seriously.

Ramaphosa noted that through the renewable energy programme (REIPPP), the country has been buying clean energy from independent power producers at lower rates with every bid cycle.

ESI Africa, 16 February 2019

Radebe says IRP to be finalised in March and promises to address IPP issues soon

Energy Minister Jeff Radebe listed the finalisation of the Integrated Resource Plan (IRP) for electricity as South Africa’s main energy priority and indicated on Tuesday that the policy should be approved in March.

Speaking on the sidelines of the 2019 edition of Africa Energy Indaba he said he would be meeting the business and labour constituencies at the National Economic Development and Labour Council on 5 March and expected the IRP to be finalised soon thereafter.

Engineering News, 19 February 2019

Regional development focus necessary for Africa’s energy future – panel

A number of trends and influences are driving change in the energy sector, with a collective drive towards a safer, more environment-friendly, reliable and sustainable future.

Leading a panel discussion at the Africa Energy Indaba on Tuesday, Strategic Concepts chairperson Sean Cleary said the transition to a low-carbon economy could not be insensitive to social needs.

Engineering News, 19 February 2019

Digitalisation could facilitate energy access, efficiency in Africa – panel

Digitalisation within the African energy sector is accelerating at a rapid rate, creating demand for innovation and adaptation to new market technologies and the development of new skill sets within organisations, Trade and Industry Policy Strategies executive director Saul Levin told delegates at Africa Energy Indaba, on Tuesday.

By adopting digitalisation, US$300 billion could be added to Africa’s economy by 2026. However, prominence should be given to an African approach to maximise the benefit for Africa, a panel discussion led by Levin found.

Engineering News, 19 February 2019

Africa still slow to take up EVs, energy storage solutions

Globally, there is a rise in the uptake of electric vehicles (EVs) and battery storage systems, especially in regions where there is a lack of constant, reliable energy supply or more economically feasible solutions, Electric Vehicle Industry Association representative Carel Snyman said during a panel discussion on the second day of the Africa Energy Indaba, on Wednesday.

Spurred by the adoption of cleaner, but intermittent energy sources, declining prices and regulatory subsidies, battery energy storage systems are being increasingly used across the electric system.

Engineering News, 20 February 2019

Power pools could benefit Africa’s regions

Power pooling is an effective means of mitigating electricity supply risk over a large area served by numerous utilities, information technology services company EOH divisional manager Rob Surtees said during the second day of the Africa Energy Indaba.

During a panel discussion on energy trading and power pools, he stressed the need for an interchange of power flow among the various regions in Africa.

Engineering News, 20 February 2019

There is scope for more IPPs in Africa, South Africa – SAPP CEO

There is a need to increase electricity trading to deal with imbalances in the electricity sector, South African Power Pool (SAPP) CEO Stephen Dehwa said at a South African Independent Power Producers Association seminar on Wednesday.

To ensure that there was adequate energy at any given time and at the right price, there was scope for more IPPs to operate in Africa and South Africa, he noted.

Engineering News, 20 February 2019

Zambia, Zimbabwe shortlist foreign firms to build hydro plant

Zambia and Zimbabwe have shortlisted American, European and Chinese companies to build the Batoka Gorge hydro power plant, the ministry of finance said in statement on Wednesday.

Preparatory studies, including engineering feasibility, for the 2 400 MW power station will be completed by end of the first quarter, it said.

Engineering News, 21 February 2019

Inclusion of strategic partner in grid company "not privatisation"

Finance Minister Tito Mboweni insists that the inclusion of a strategic equity partner in the national grid company to be formed in mid-2019 as a result of the unbundling of Eskom into three separate state-owned entities does not amount to privatisation.

The proposal is, nevertheless, likely to reinforce the argument of some trade unions that the unbundling is a precursor to privatisation. It is also noteworthy in that it aims to include a private participant in an area of the electricity supply sector that is expected to remain a monopoly, even after unbundling.

Engineering News, 21 February 2019

Radebe says South Africa has no intention of renegotiating renewables PPAs

Energy Minister Jeff Radebe says government has no intention of renegotiating the power purchase agreements (PPAs) for renewable-energy projects procured in 2011 and 2012, but has left the door open for a “refinancing” of the projects in the interest of lowering the cost of the plants to the consumer.

The prospect of renegotiating the contracts had been raised by Public Enterprises Minister Pravin Gordhan during a recent Parliamentary Portfolio Committee meeting in Cape Town.

Engineering News, 24 February 2019

The above reflects a summary of certain news articles published during the preceding week. It is not an expression of opinion in respect of each matter, nor may it be considered as a disclosure of advice by any employee of Hogan Lovells.

For more information contact Charles Marais

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