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Govt to reveal energy projects

Mar 03 2010 07:54 James-Brent Styan

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Johannesburg - All the projects sought by government to generate about 10 000 gigawatt hours (GWh) of renewable energy by 2013 could be identified by the third quarter of 2010.

These projects will be operated by independent power producers.

The chairperson of the National Energy Regulator's subcommittee on electricity, Thembani Bukula, says that with the fixing of Eskom's tariffs, the regulator approved about R12bn to enable Eskom to negotiate with independent parties and enter into contracts between 2010 and 2013.

Developers have for years been struggling to get Eskom so far as to conclude electricity-purchase contracts with them.

These companies, which will have to make huge capital investments, require contracts to obtain funding.

Sake24.com understands that government wants to enter into 20-year contracts with the producers, at prices based on renewable-energy tariffs approved in 2009.

On Tuesday Bukula pointed out that these tariffs are high. The average cost of electricity generated from coal is currently 33c per kilowatt hour. For wind power the tariff is up to R1.25 per kilowatt hour and for solar energy up to R3.14.

He said the tariffs would be reviewed every year for the next five years, and thereafter every three years. Most of the 10 000 GWh will come from wind projects.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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