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Energy Dept looks to private sector to solve electricity crisis - as it happened

2015-04-16 08:52

Energy Minister Tina Joemat-Pettersson has announced an increase in independent power procurement (IPP) options after naming 13 successful IPP bids.

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Last Updated at 14:57
16 Apr 11:33
What do you think about the move to procure more IPPs?

16 Apr 11:32
Joemat-Pettersson: Department has been gathering information on potential for more innovative demand reduction, load shifting and energy efficiency initiatives.

16 Apr 11:31
Joemat-Pettersson: Currently 800MW has been determined for cogeneration and depending on responses from the market, this determination may be increased in the future.

16 Apr 11:30
Joemat-Pettersson: This requires 51% of SA entity participation and we hope more South Africans will capatalise on this opportunity.

16 Apr 11:29
Joemat-Pettersson: The coal basedload IPP programme will procure 2500MW from electricity from coal fired power stations from bidders limited to bidding a max of 600MW per project.

16 Apr 11:28
Joemat-Pettersson: As part of the Gas Utilisation Master Plan, the department has been engaged in a process to design a gas to power procurement programme for a combined 3126MW allocation.

16 Apr 11:27
Joemat-Pettersson: A procurement process, seeking to procure 50MW of the 200MW determined for small projects, is currently underway. 29 bids have been received totaling 139MW and evaluations of bids will be finalised during April 2015 for subsequent announcement.

16 Apr 11:25

16 Apr 11:24
The race for renewable energy has passed a turning point - the world is now adding more capacity for renewable power each year than coal, natural gas combined.

16 Apr 11:22
Golebiowski: We are proud to support the University of Stellenbosch with R1.5m funding per year over five years to build competencies and capabilities to develop the skills locally here that we can hopefully benefit from (from learning from them).

16 Apr 11:21
Golebiowski: It’s a small example of how the programme is building long-term sustainable industry. We have decided to make this place our global hubs. With the new wins, it reconfirms our strategy.  Companies will devise long-term strategies on the continent. Things will happen on the back of this. We can now look at other projects in Africa because of SA’s leadership. There have been challenges, but they are becoming overcome. They deserve a lot of credit from a renewable perspective.

16 Apr 11:21

16 Apr 11:20
Golebiowski: The renewable IPPs programme is inspiration and visionary – it’s really big on a global scale. It’s over 4000MW they are planning to reward this year. It’s going to make it by far one of the biggest markets globally for renewables. That’s pretty impressive.

16 Apr 11:04
Golebiowski: For us it is a major success. It is one of the biggest days in history. It adds to the 190Mw we already have in SA in solar. For us, it reconfirms that SA is the heart of our company. It is a Norwegian and headquarters in Norway where there are 30 employees. But SA is our global technical hub and there 60 people here. We closed down our German hub, it became less relevant and the global hub moved to SA. AS the European markets slow down, we found opportunities were stronger in Africa.

16 Apr 10:58
Andrzej Golebiowski of Scatec Solar, whose company won three bids: Solar PV: Sirius Solar PV Project One - 75MW, Solar PV: Dyason's Klip 1 - 75M and Solar PV: Dyason's Klip 2 - 75MW joins Fin24.

16 Apr 10:55
Joemat-Pettersson: We have developed a small projects programme which seeks to procure renewable energy from small-scale IPPs, with projects that are between 1-5MW in size.

16 Apr 10:55
Joemat-Pettersson: I intend to submit to Nersa a new determination for an additional 6300MW for the renewable energy IPP procurement programme.

16 Apr 10:54
Joemat-Pettersson: This bidding process would be open to inter alia all unsuccessful bidders from all previous bid windows (BWs 1 to 4).

16 Apr 10:42
Joemat-Pettersson: We will be issuing a request for further proposals for an expedited procurement process of 1800MW from all technologies. I have directed the IPP Office to follow a diligent, but shortened and simplified, competitive procurement process.

16 Apr 10:40
Joemat-Pettersson: Firstly, utilising the enabling provisions in the current RFP to allocate additional MWs from Bid Window 4 procurement process. The bid window has been extremely successful with regards with regards to price and economic development proposals. I expect to receive a firm report in this regard by month end, and an announcement will be following soon thereafter.

16 Apr 10:35
Joemat-Pettersson: I have instructed my department and the IPP Office to accelerate and expand the renewable energy IPP procurement programme.

16 Apr 10:35
Joemat-Pettersson:In view of the current electricity supply challenges experienced in our country, and in the context of broader coordination efforts of government, the department has been structuring a comprehensive response with regard to the IPP programme.

16 Apr 10:34
Joemat-Pettersson: We expect financial close for Bid Window 4 to be in Quarter 4 of this year, and commissioning of these projects from November 2016.

16 Apr 10:33

Joemat-Pettersson: The 13 preferred bidders for window 4 are:

1. Bio-Mass - Ngodwana Energy Project - 25MW
2. On-Shore Wind: Roggeveld Wind Farm - 140MW
3. On-Shore Wind: The Karusa Wind Farm - 140MW
4. On-Shore Wind: The Nxuba Wind Farm - 139MW
5. Golden Valley Wind - 117MW
6. Solar PV: Sirius Solar PV Project One - 75MW
7. Solar PV: Droogfontein 2 Solar - 75MW
8. Solar PV: Dyason's Klip 1 - 75MW
9. Solar PV: Dyason's Klip 2 - 75MW
10. Solar PV: Konkoonsies II Solar Facility - 75MW
11. Solar PV: Aggeneys Solar Project - 40MW
12. Hydro: Kruisvallei Hydro - MW
13. Oyster Bay Wind Farm - 140MW


16 Apr 10:28
Joemat-Pettersson:That is in addition to the contribution it makes to security of electricity supply.

16 Apr 10:28
Joemat-Pettersson: This brings it to a total of 79 projects approved by the Department of Energy with a capacity of 5243MW across all renewable energy bid windows. This represents a massive investment of R168bn in economic infrastructure in our country, which will contribute to economic growth and job creation.

16 Apr 10:26
Joemat-Pettersson: I am pleased to confirm that on the 11th of April 2015, the DoE issued confirmation letters to another 13 preferred bidders for the fourth bid submission phase of the RE IPP programme. These projects, once completed, will contribute an additional 1121MWs to the national grid.

16 Apr 10:25
Joemat-Pettersson: The Renewable energy IPP programme has been a flagship programme of the department. A total of 4322MW have been procured in less than four years.

16 Apr 10:24
Joemat-Pettersson:The electricity supply options will be derived from renewable resources, gas, coal and cogeneration.

16 Apr 10:24
Joemat-Pettersson:We have called this briefing to share with the SA public a combination of energy supply and demand options that will increase the participation of the independent power producers (IPPs) to electricity supply to the grid as well as private participation in energy efficiency and demand side initiatives.

16 Apr 10:19
Joemat-Pettersson:The SA government is following a coordinated approach to the energy crisis, while ensuring that energy developments are maximising socio-economic development objective, in addition to economic growth.

16 Apr 10:18
Joemat-Pettersson: Resolving the energy challenge remains a critical element of the SA Cabinet's list of nine strategic priorities to be pursued in partnership with the private sector and all stakeholders.

16 Apr 10:13
Joemat-Pettersson:Sometimes you have to have more haste and less speed, but with this I have to go very fast. It's an attempt to get more megawatts online. My biggest challenge is to put pressure on Eskom to evacuate the energy.

16 Apr 10:13
Joemat-Pettersson: There are complexities to speed up of the programme, which means there are overlaps in the bid windows for IPPs. I am putting the sector under tremendous pressure to actually come to the party and shorten your preparedness and steps by IPPs. I need your cooperation and need it to happen yesterday.

16 Apr 10:10
Joemat-Pettersson: When the power purchase agreements are signed (which Eskom has to do and it reports to Minister Lynne Brown) then we have to put pressure on them to sign it. The best thing that has happened now with the War Room is that we are working really well now with Eskom and the Department of Public Enterprises, which allows us to accelerator processes to fast track processes.

16 Apr 10:08
Joemat-Pettersson:  IPPs (wind, gas, solar) will have to be accelerated.

16 Apr 10:07
Joemat-Pettersson: The next step is a social one to get communities on board. They should not be passive recipients of this programme. They should be active participants of their own destinies.

16 Apr 10:06
Joemat-Pettersson: We want to thank the  SA Independent Power Producers Association and congratulate you with positive approach. It has been a positive interaction between the War Room and the private sector. It has also been a transparent process. All our legal and treasury measures were met in a transparent process.

16 Apr 10:02
Joemat-Pettersson: There is an aggressive attempt to fast track solutions. With the power purchase agreements on coal generations, I was able to fast track that process. I will leave no stone unturned to speed up process to assist in the solution to that we seek as a country. There is no delay by the side of the minister.

16 Apr 10:00

Dr Barnard: We give confidence to users of electricity that there is a plan in place. It's part of normal business. It's part of the IRP process. The 5 point plan from the War Room deals with what we're dealing with right now. Departments are working together that are dealing.


16 Apr 09:51

16 Apr 09:47
Joemat-Pettersson: The interactions with the IPPs has been hugely appreciated.

16 Apr 09:46
Joemat-Pettersson: We do possess the resolve to correct issues in the energy sector.

16 Apr 09:44

16 Apr 09:43
Joemat-Pettersson: We want to see more South Africans capitalising on this programme. Coal programme will be launched within various bid windows. The first request for bids was sent on December 15 2014 and announcement will be made at the end of the year.

16 Apr 09:42
Joemat-Pettersson: Our coal based 2500MW programme will be procured for 600MW per project.

16 Apr 09:41
Joemat-Pettersson: There will be 3126MW of gas to power allocation. This gas to power request for information will be released to market at the end of April. This will stimulate the economy. 

16 Apr 09:41
Joemat-Pettersson: A small projects funding mechanism is intended to give funding who might not get it from commercial banks. This innovative approach will outlined in the energy budget address.

16 Apr 09:40
Joemat-Pettersson: Small projects must be simplified to make the bidding process less costly.

16 Apr 09:39
Joemat-Pettersson: I am going to ask Nersa to add a further 6300MW to renewable IPP programme. A total of 29 bids with 139MW have been received so far.

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