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Projects and Energy Weekly Snippets

9 October 2015

South Africa's power grid needs $15 billion boost for new energy production

South Africa's ageing electricity transmission grid needs investment of $15 billion by 2022 to help cope with increased new energy production, an executive at German state development bank KfW said on Sunday.

Africa's most advanced economy is investing heavily in renewable energy to counter chronic electricity deficits, but power utility Eskom's ageing grid is making feeding more electricity into the system difficult.

Engineering News, 5 October 2015

Electricity sales income surges fourfold to ZAR150 billion

South Africa's electricity generation dropped by 10% between 2010 and 2013, but sales income increased fourfold to ZAR150.2 billion, Statistics SA Statistician General Pali Lehohla said on Monday.

Of that, 91% of the country's electricity was still produced using coal, raising concerns over the potential effect of the National Union of Mineworkers' (NUM) current pay strike. Thereafter 5% was generated via nuclear facilities, gas and diesel (2%), pump storage (1%) and hydro (0.5%).

Engineering News, 5 October 2015

Africa can quadruple share of renewable energy – Irena report

Amid soaring electricity demand, the African continent is capable of generating nearly one-quarter of its energy needs through clean, indigenous renewable energy by 2030, a new report by the International Renewable Energy Agency (Irena) shows.

Engineering News, 5 October 2015

South Africa to extend renewable-energy programme into rest of Africa

The South African Department of Energy (DoE) plans to extend its renewable-energy programme to the rest of Africa over the next five years.

Energy Minister Tina Joemat-Pettersson advised delegates at the South African International Renewable Energy Conference (Sairec) that South Africa hoped to roll out the renewable-energy programme in the rest of Africa, using the expertise it had gleaned over the last few years.

Engineering News, 5 October 2015

Green energy needs more black owners in future, says state

The government will target a higher share of black ownership in future renewable energy projects, in a bid to enhance the transformation objectives of the independent power producer programme.

Business Day, 6 October 2015

Switch to renewables can benefit municipalities

Municipalities should not see the move of customers towards their own electricity generation through renewables and co-generation as a revenue loss, but as an opportunity for new revenue streams, EON Consulting MD Bertha Dlamini said on Monday.

Ms Dlamini told the Association of Municipal Electricity Utilities (AMEU) conference in Sandton that municipalities could be more creative in diversifying their revenue, for example, by offering households hire purchase agreements for rooftop solar panels or energy efficiency solutions such as double glazing.

Business Day, 6 October 2015

Coal is a dirty fuel of the past, says WWF

The Worldwide Fund for Nature (WWF) has called on governments to introduce legislation that puts a stop to the construction of new coal plants, stating that coal consumption needed to be phased out completely by 2050, or earlier.

Engineering News, 6 October 2015

SA’s renewable energy plan a global success story

South Africans may be negative at times about their country’s prospects, but its renewable energy sector has rapidly emerged as a global leader. It is investor friendly, is based on pragmatic policy and sees the government working efficiently with business.

Renewable energy has attracted investment of ZAR192.6 billion, of which 28% (ZAR53.2 billion) is foreign investment — equal to 85.8% of all foreign direct investment in SA last year.

Business Day, 7 October 2015

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.

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