Tag Archive for: IPP

Andrew Stegmann
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US Firm Aims to Build a Nuclear Power Plant in South Africa

The future of South Africa’s energy supply could be shaped by a cash injection from the United States of America. The government, in their ongoing discussions with NEDLAC and foreign investors, has entertained the idea of letting an international development firm finance and build a new nuclear power plant in South Africa.

As Bloomberg has confirmed, The US International Development Finance Corp (DFC) has signed a letter of intent to support plans laid out by NuScale, an American technology group that are ready to kick on with this project.

Amongst the billions of dollars they’ve pledged to South Africa, a ‘secure, reliable energy supply through the construction of new nuclear plants’ is their major priority.

The DFC released a statement last week, confirming that they would be pioneering in their ambitious blueprint. Should a new nuclear plant get the green light, this would be the first IPP funded by the USA throughout the whole of Africa.

“If the United States International Development Finance Corp is successful, NuScale would be the first U.S. nuclear energy IPP on the continent and would help support energy resilience and security in one of Africa’s leading economies.”

– Statement from the DFC

It’s understood that the DFC would go further than just building a new nuclear power plant in South Africa. It’s reported that their investment would plough billions into private infrastructure and public transport ‘between now and 2022’:

  • The construction of a billion-rand plant tops their agenda, providing a further 2 500 megawatts of power in South Africa.
  • The DFC has signed a letter of intent to support NuScale’s bid for South Africa’s independent power producer program.
  • The draft envisages R23 billion ($1.4 billion) being allocated to galvanize private investment in infrastructure.
  • A further R4.5 billion would be spent on public transport development over the next 12 months.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann
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Western Cape Wants To Be the First Province to Ditch Load-shedding As It Moves Away From Eskom

As part of the Western Cape’s promise to eliminate load shedding, the provincial government says it has assisted 24 local municipalities and the City of Cape Town with their small-scale embedded generation (SSEG) projects.

This forms part of the province’s new Municipal Energy Resilience (MER) project which aims at upscaling and assisting Western Cape municipalities in procuring wholesale electricity from Independent Power Producers (IPPs).

“The procurement of energy can be a complex, challenging task, and municipalities do not always have the necessary policies, plans, resources, and procurement expertise to purchase their own electricity,” said Deidré Baartman, the DA’s Western Cape spokesperson for Finance, Economic Development, and Tourism. “However, the national gazetting of regulations to allow for municipalities to generate and procure their own electricity independently of Eskom is a move in the right direction toward the Western Cape being the first province to eliminate load shedding – a promise on which we will hold the premier to account in his Western Cape Recovery Plan tabled last week.”

Baartman said that the MER’s aim is to offer structured support to municipalities in navigating these complexities in order to realise new, more cost-effective energy and create economic opportunities for their communities.

The project is also aiming to improve municipalities’ revenues by balancing energy security with creating more secure, reliable and cost-effective future electricity price paths. “These 24 municipalities are poised to take advantage of the recent regulations that allow municipalities in good financial standing to procure their own energy. “In order to grow the economy, energy security is paramount and will lead to reduced business costs, build business confidence, and help to attract investment for the province.” Baartman said. She added that the DA  is committed to producing reliable, cost-effective energy and creating economic opportunity for residents of the Western Cape.

New directive 

On 16 October, Mineral Resources and Energy minister Gwede Mantashe gazetted a directive which provides a framework around electricity generation for the country’s municipalities. The minister said that will give effect to president Cyril Ramaphosa’s commitment during the state of the nation address that government will enable municipalities in good financial standing to develop their own power generation projects, he said.

“The amendments to the regulations clarify the regime applicable to municipalities when requesting determinations under Section 34 of the Electricity Amendment Act,” he said. “This will ensure an orderly development that is in line with the applicable Integrated Resource Plan (IRP) and municipal Integrated Development Plans (IDPs).” Mantashe said that the amendments will ensure that requests are from municipalities in good financial standing, with feasible project proposals. He said that his department has also put in place internal mechanisms to ensure that these requests are attended to in the shortest possible time.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann
,

South African Government to Allow Municipalities to Source Their Own Power

According to the Government Gazette, South Africa will allow municipalities to source their own power rather than buying electricity solely from the state-owned utility, potentially easing a dispute with its second-biggest city, Cape Town.

Earlier this year, a judge ordered further negotiations between the City of Cape Town and the energy ministry after the municipality sued the government because it wasn’t allowed to proceed with its own energy procurement plans. Under the planned rules, the local authority would still need government permission to do so, which it objects to.

In addition to wanting to generate more power from renewable resources, South African cities including Cape Town, Johannesburg, the adjacent industrial hub of Ekurhuleni and Tshwane, which includes the capital, Pretoria, have been subjected to regular power cuts because state-owned Eskom Holdings SOC Ltd. cannot meet demand and distribution infrastructure is dilapidated.

Cape Town has outlined plans to source electricity from solar plants and waste-to-power projects at its landfill sites. Eskom produces most of its power from coal.

Leila Mahomed-Weideman, director of sustainable energy markets for the City of Cape Town, said she couldn’t immediately comment.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].