Projects and Energy Weekly Snippets
8 January 2016
Renewable energy can be the game changer
From a total investment of a few hundred million rands in the sector in 2011 to more than ZAR160 billion now, investment in renewable energy has reached almost 5% of gross domestic product.
If Africa energises using fossil fuels, the world will never meet its climate targets hence the launch in Paris of the Africa renewable energy initiative, which has attracted pledges worth billions of dollars from many governments.
Research shows Africa could meet 50% of its energy needs using renewables by 2050. This would be a game changer. And SA’s investment in renewable energy shows it can be done.
Business Day, 4 January 2016
Montalto: Nuclear energy plan will likely fail
South Africa will likely fail in its quest to develop its nuclear energy capacity, according to emerging markets economist Peter Attard Montalto of Nomura.
Montalto told Fin24 that if the 9 600 MW nuclear procurement programme does see the light of day it will be a “slimmed down programme spread over a longer period of time, given the affordability issue”.
“I still believe no formal sign off on affordability under any financing option has been provided by National Treasury and indeed that it remains totally unaffordable under any financing model including vendor financing,” he said.
Engineering News, 5 January 2016
Eskom: No secrecy around Zim power deal
Media reports in Zimbabwe have alleged that Eskom has entered into a “secret” deal to sell 300 MW of electricity to the neighbouring country, which has been experiencing power shortages lately. The reports also quoted Zimbabwe Energy and Power Development Ministry Permanent Secretary Partson Mbiriri saying the deal has to be kept under wraps “for security reasons”.
In a statement on Monday evening, Eskom confirmed the sale of power to Zimbabwe “but there is no secrecy about this”, it said. Eskom is part of the Southern African Power Pool (SAPP), and so is Zesa, where member utilities sell surplus electricity to each other depending on the need, Eskom said.
Engineering News, 5 January 2016
Eskom planned maintenance ramped up to 9000 MW over festive season
Energy utility Eskom successfully conducted maintenance on 9000 MW of its plant capacity during the festive season, leveraging off the seasonal drop in the demand for electricity and overshooting its original target of between 6000 MW and 8000 MW.
Engineering News, 6 January 2016
Former GreenCape CEO to join Tesla SA
A TESLA "gigafactory" in the Western Cape might seem like a dream, but with one of the province’s own joining Elon Musk’s team, it might be within reach.
MEC for economic opportunities Alan Winde is beaming because Evan Rice, former CEO of GreenCape, has been appointed as Tesla’s business development manager in SA.
Tesla manufactures the Powerwall, a home battery charged by solar panels, and South African-born Musk is building a US$5 billion "gigafactory" in the Nevada desert to produce the batteries.
Business Day, 6 January 2016
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.