Projects and Energy Weekly Snippets

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Least-cost base case essential starting point for IRP process – SAWEA

The South African Wind Energy Association (SAWEA) has rejected the current base case scenario used for the 2016 Integrated Resource Plan (IRP2016) Update for Electricity, calling for the scenario to be remodelled as a “least-cost energy plan” and re-issued for consultation.

The public participation period for the update to the IRP closed on 31 March. Following a countrywide public consultation roadshow, expectations were now that the plan would be finalised by August or September, Engineering News Online reported last month. 

Engineering News, 7 April 2017

Eskom and Botswana Power Corporation sign PPA

South African state-owned power utility, Eskom, and the Botswana Power Corporation (BPC) have signed a three-year firm power supply agreement, the parastatal confirmed on Wednesday.

According to the South African utility, this move is in line with Eskom’s plan to increase its electricity exports to South Africa’s neighbouring states.

Eskom has reported that it currently has excess capacity of about 4000 MW, excluding an operating margin.

ESI Africa, 7 April 2017

Construction of Northern Cape wind farm ramping up as first components arrive

Construction of the Northern Cape-based Khobab Wind Farm has begun in earnest with the arrival of various wind turbine components at the construction site in the Hantam municipality, 60 km north of Loeriesfontein, in the Northern Cape.

The first components, comprising two nacelles, two hubs and three turbine blades, arrived at the wind farm on 22 February.

Engineering News, 7 April 2017

Renewables remain a priority for African economies – WEC

Three critical uncertainties facing South Africa this year includes commodity prices, electric storage and exchange rates, the World Energy Council’s World Energy Issues Monitor 2017 suggests.

The report states that, given the strong linkage of the South African economy to commodity prices, it was understandable that commodity prices, already identified as a critical uncertainty in last year’s issues monitor, topped the list.

“High energy prices – electricity and oil products – are incentives for consumers to become increasingly independent. A cost-effective solution to electric storage would be a game-changer for the use of wind and solar power and the viability of e-vehicles,” the reported stated.

Engineering News, 6 April 2017

CSIR’s formal IRP submission deviates dramatically from Base Case

The Council for Scientific and Industrial Research’s formal input into the Integrated Resource Plan (IRP) public consultation process, which ended on 31 March, proposes a new-build mix that deviates materially from the IRP Base Case released by the Department of Energy (DoE) in November.

The same modelling framework used by the DoE is employed by the CSIR to develop what it describes as a “least-cost, unconstrained electricity mix by 2050”.

The science council’s techno-economic model, therefore, does not include the limitations imposed in the Base Case on the amount of renewable-energy capacity that can be added in a single year.

Engineering News, 5 April 2017

South Africa downgraded to “Junk” status

On Monday, South Africans were devastated when S&P Global Ratings downgraded the country’s sovereign credit rating to “Junk”.

This is as a direct result of President Jacob Zuma’s Cabinet reshuffle last week.

The ratings agency said the executive changes “have put at risk fiscal and growth outcomes”, Engineering News reported.

ESI Africa, 4 April 2017

Index shows South Africa is wasting its renewable energy potential

Although South Africa is the country with the most potential “by far” in terms of its renewable energy programmes, it is stuck in a the “(Fitfully) Waking Giant” category, financial services provider Fieldstone Africa said in its first renewables index for the year.

When the Fieldstone Africa Renewables Index (FARI) was introduced, South Africa was the leading country on the continent in terms of its renewable energy programme. The index ranks national markets in terms of current suitability to invest time and capital to achieve successful renewable projects.

However, the country’s reputation and position on the index began to slip owing to a refusal by energy utility Eskom to sign further power purchasing agreements (PPAs) with independent power producers (IPPs).

Engineering News, 3 April 2017

Eskom and EDF sign MoU to enhance SA power grid

On Friday, South African state-run power utility, Eskom and Électricité de France (EDF) signed a Memorandum of Understanding (MoU) to extend peer cooperation in the fields of transmission and distribution of electricity.

The utility confirmed in a statement that the memorandum follows constructive interactions initiated in November 2015 with a grant amounting to US$445 470 provided by the French Development Agency (AFD).

ESI Africa, 3 April 2017

High-temperature reactor phoenix emerging from PBMR ashes?

Early-stage research into the possible revival of the Pebble Bed Modular Reactor (PBMR) has yielded a revamped reactor concept that incorporates an entirely new operational philosophy, as well as the use of construction materials and manufacturing techniques that were either not considered or unavailable during the development of the PBMR.

The PBMR programme was officially closed in 2010, owing to funding constraints and an inability to attract an investment partner, but the intellectual property was retained the by PBMR Company, a wholly owned subsidiary of South Africa’s state-owned utility.

Engineering News, 3 April 2017

The above reflects a summary of certain news articles published during the preceding week.

 

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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