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Regulation News

Placing green stimulus at heart of South Africa’s postpandemic recovery would yield big co-benefits

By: Terence Creamer 4th June 2020 South Africa’s medium-term response to the Covid-19 pandemic provides a unique opportunity to reset the country’s unsustainable development pathway by fostering a “green recovery” that improves electricity and water security and creates jobs, Trade & Industrial Policy Strategies senior economist... →

SAPVIA says draft new generation regulations fall short of mark

By: Creamer Media Reporter 1st June 2020 The South African Photovoltaic Industry Association (SAPVIA) says draft amendments to the Electricity Regulations on New Generation Capacity enabling municipalities to develop or procure their own power generation fall short of addressing needs of either industry or municipalities. Mineral... →

Bid documents for 2 000-MW emergency power being finalised after Nersa concurrence ‘milestone’

By: Terence Creamer 26th May 2020 The Department of Mineral Resources and Energy (DMRE) confirmed on Tuesday that the National Energy Regulator of South Africa (Nersa) had concurred with a Ministerial determination submitted to the regulator in February for the procurement of 2 000 MW of emergency electricity from independent... →

IPP Office working on scheme to procure 128 MW of additional energy from existing wind and solar farms

Covid-19 workplace protocols must become ‘second nature’ for any further lockdown easing

By: Terence Creamer 25th May 2020 Organised business has called for domestic firms to take steps to ensure that their workplaces are Covid-19-ready in light of President Cyril Ramaphosa’s May 24 announcement that the country would transition from lockdown Level 4 to Level 3 from June 1, a move that will result in many more South... →

Photo by Creamer Media's Donna Slater
Busa president Sipho Pityana

Eskom describes Nersa’s treatment of coal costs in latest RCA claim as ‘significant shift’

By: Terence Creamer 18th May 2020 State-owned electricity group Eskom says the National Energy Regulator of South Africa’s (Nersa’s) latest regulatory clearing account (RCA) determination for the 2018/19 financial year contains “some encouraging decisions”, highlighting its treatment of coal costs as representing a particularly... →

Nersa allows Eskom to claw back R13.3bn in tariffs

By: Reuters 18th May 2020 South African energy regulator Nersa said on Friday it will allow utility Eskom to recover R13.3-billion from customers for electricity supplied in the 2018/19 financial year, lower than what the state-owned power utility had applied for. Nersa said in a statement it will give its reasons for the... →

New venture set up to explore South Africa’s offshore floating wind-farm potential

By: Terence Creamer 13th May 2020 A South African renewable-energy company has teamed up with a Swedish floating wind-farm developer and technology designer to explore the development of large-scale floating wind farms offshore South Africa. In a joint statement released in Stockholm and Cape Town, Hexicon AB and Genesis... →

Cape Town in landmark suit to open South Africa’s power system

By: Bloomberg 13th May 2020 The city of Cape Town is awaiting a court ruling on whether it can buy its own electricity from suppliers other than national power utility Eskom Holdings without getting approval from the energy minister. Judge Leonie Windell of South Africa’s High Court on Tuesday reserved judgment in the case... →

Full legal separation of Eskom divisions still years off, lawmakers hear

By: Terence Creamer 7th May 2020 Eskom CEO Andre de Ruyter told lawmakers on May 6 that “good progress” had been made on the “divisionalisation”, under Eskom Holdings, of the utility’s generation, transmission and distribution businesses, with separate boards and MDs having been appointed for each unit. He also indicated,... →

Photo by Creamer Media's Donna Slater
Eskom CEO Andre de Ruyter

Mantashe seeks comment on draft regulations enabling municipalities to buy own power

By: Terence Creamer 6th May 2020 Mineral Resources and Energy Minister Gwede Mantashe has released, for public comment, draft amendments to the Electricity Regulations on New Generation Capacity that would enable municipalities “in good financial standing” to develop or procure their own power generation. In a statement,... →

Photo by Creamer Media's Donna Slater
Mineral Resources and Energy Minister Gwede Mantashe

Incentives needed to aid local energy tech

By: Mamaili Mamaila 1st May 2020 While there is an increased focus on local content across several South African industries, government could do more in terms of incentivising local manufacturing, says energy solutions company i-G3n co-founder and director Sydney Phakathi. →

NO FUSS WHATSOEVER i-G3n offers standard solutions that it can also tailor to suit the specific needs of every client

Solar body calls for overhaul of distributed-generation rules in open letter to Ramaphosa

By: Terence Creamer 29th April 2020 The South African Photovoltaic Industry Association (SAPVIA) has written to President Cyril Ramaphosa endorsing his call for the forging of a “new economy”, while also appealing for decisive policy and regulatory action to ensure that the country does not “return to the dark days of... →

Wido Schnabel

2019 set a record for renewable electricity generation in the UK

By: Rebecca Campbell 24th April 2020 In a report issued on April 9, the British Department for Business, Energy and Industrial Strategy (BEIS) reported that, based on provisional figures, last year had been a record year for the production of electricity using renewable technologies in the UK. Renewable electricity generation last... →

Opportune time for LPG growth

By: Cameron Mackay 24th April 2020 The local liquified petroleum gas (LPG) market is an underdeveloped industry and has significant growth potential, largely owing to its use as an energy source, says the Liquefied Petroleum Gas (LPG) Safety Association of South Africa acting MD Nirvan Brijlal. Moreover, he highlights the... →

POTENTIAL UNLOCKED LPG’s versatility in domestic, commercial and industrial applications, and impending supply capacity improvements, are significant factors signalling the potential for growth for the industry

Association improves technicians training

By: Cameron Mackay 24th April 2020 The Liquefied Petroleum Gas (LPG) Safety Association of South Africa has been investing in improving its LPG technicians’ installation training through collaboration with the Department of Employment and Labour (DEL) as one of its mandates for the LPG sector. “This will enable us to ensure that... →

NIRVAN BRIJLAL The industry is well regulated, with many safety standards in place

Decarbonising of local power generation sedate

By: Tracy Hancock 17th April 2020 Decarbonising South Africa’s electricity generation is no longer a technical challenge, it is a political and economic issue, says University of Pretoria Graduate School of Technology Management professor David Walwyn. The Integrated Resource Plan 2019 (IRP 2019) forecasts that it will take... →

RENEWED PROJECTION The growing appeal of grid-tied and standalone rooftop solar systems may alter the Integrated Resource Plan’s 30-year projection for the decarbonising of South Africa’s electric power generation

Mine to benefit from minigrid project

By: Mamaili Mamaila 10th April 2020 Electricity storage provider Bushveld Energy initiated the development of a minigrid project, at the Vametco mining and processing facility, in March last year. →

MIKHAIL NIKOMAROV The Vamecto minigrid project is unmatched in its ability to deliver long-duration storage and cycle multiple times a day

Storage should aim to address cost reduction

10th April 2020 Ensuring that renewable energy is a useful asset to the grid and that the companies that own and operate it are profitable, while also producing less expensive energy, is a complex job. →

Eskom’s Bernard Magoro appointed as new head of IPP Office

By: Terence Creamer 8th April 2020 The Development Bank of Southern Africa (DBSA) announced on Wednesday, April 8, that former Eskom executive Tshifhiwa Bernard Magoro had been appointed as the new head of the Independent Power Producers Office (IPPO). The appointment would be effective from May 1. →

Photo by Creamer Media's Donna Slater
Tshifhiwa Bernard Magoro

Eskom extends bidding deadline for short-term power purchase scheme

By: Terence Creamer 8th April 2020 Electricity utility Eskom has extended the deadline, to May 11, for responses to a request for proposals (RFP) to participate in its Short-Term Power Purchase Programme (STPPP), owing to the imposition of a 21-day lockdown in South Africa in response to the Covid-19 pandemic. The initial bid... →

Ramaphosa places Ndabeni-Abrahams on special leave for violating lockdown regulations

By: Sane Dhlamini 8th April 2020 President Cyril Ramaphosa has placed Minister of Communications and Digital Technologies Stella Ndabeni-Abrahams on special leave for two months, one of which will be unpaid, for violating the regulations of the national lockdown amid the coronavirus (Covid-19) pandemic. A recent social media... →

Minister of Communications and Digital Technologies, Stella Ndabeni-Abrahams

Gumede appointed regulator member at Nersa

By: Marleny Arnoldi 2nd April 2020 Mineral Resources and Energy Minister Gwede Mantashe has appointed Nhlanhla Gumede as a full-time regulator member of the National Energy Regulator of South Africa (Nersa). Gumede will primarily be responsible for electricity regulation for five years, effective April 1. →

Photo by Creamer Media's Donna Slater
Nersa chairperson Jacob Modise

Taxis allowed 100% of capacity only with masks – Mbalula

By: Sane Dhlamini 1st April 2020 Transport Minister Fikile Mbalula announced on Wednesday that taxis could carry their full loads during the national lockdown, provided that all passengers wore masks. Mbalula was addressing taxi operators and commuters at the MTN Taxi Rank in Johannesburg after he held discussions with the... →

Transport Minister Fikille Mbalula

Mantashe sustains 1 MW licence-exemption cap despite calls for higher threshold

By: Terence Creamer 27th March 2020 Mineral Resources and Energy Minister Gwede Mantashe Gazetted an amended version of Schedule 2 of the Electricity Regulation Act on March 26, which the Department of Mineral Resources and Energy (DMRE) said further clarified the requirements for generation for own use for facilities of under 1... →

Photo by Creamer Media's Donna Slater
Mineral Resources and Energy Minister Gwede Mantashe

KZN MEC says dept has adopted zero tolerance on price hiking amid lockdown

By: Sane Dhlamini 27th March 2020 KwaZulu-Natal economic development, tourism and environmental affairs MEC Nomusa Dube-Ncube says her department is in communication with the management of Spar KZN with the view of terminating contracts of franchise owners who are involved in price hiking. This follows consumer complaints that... →

KZN MEC for EDTEA Nomusa Dube-Ncube

Industry reaction to Minister’s call for higher levels of clean-coal investment

By: Mamaili Mamaila 27th March 2020 There is much scepticism domestically and internationally about the potential for clean-coal technology (CCT). In South Africa, however, there has been an amplification in recent months of calls for accelerated efforts to be made to finding innovative solutions to the serious environmental and... →

POWER PLANT OPTIMISATION
Eskom’s Kusile power station’s use of the wet flue gas desulphurisation technology ensures lower
emissions

Photo by GE
POWER PLANT OPTIMISATION Eskom’s Kusile power station’s use of the wet flue gas desulphurisation technology ensures lower emissions

Lawyers question whether Nersa’s concurrence timeline truly reflects power-shortfall urgency

By: Terence Creamer 24th March 2020 Project finance and energy specialists from a leading domestic law firm have questioned whether the timetable outlined by the National Energy Regulator of South Africa (Nersa) for providing its concurrence with two Ministerial determinations for new power generation “truly reflects the urgency of... →

IEA urges governments to integrate clean-energy transition into Covid-19 stimulus packages

By: Terence Creamer 23rd March 2020 The stimulus plans being developed by governments to counter the economic damage of the Covid-19 pandemic “offer an excellent opportunity to ensure that the essential task of building a secure and sustainable energy future doesn’t get lost amid the flurry of immediate priorities”, International... →

Privatisation slowly becoming reality

By: Tracy Hancock 20th March 2020 The type of participants attending this year’s Power & Electricity World Africa & The Solar Show are proof that Africa seeks to become less reliant on governments for its electricity supply, says event organiser Terrapinn Power & Electricity World Africa conference producer Caroline Mubima.... →

DRIVEN DISCUSSION The growing adoption of electric vehicles is one trend expected to dominate discussion at Power & Electricity World Africa 2020

Africa can develop on low-carbon growth path

By: Tracy Hancock 20th March 2020 Choosing between a low-carbon future and Africa’s economic growth is a false dichotomy, as these goals do not need to be in competition, says independent power producer Pele Energy Group founder Fumani Mthembi, a speaker at this year’s Power & Electricity World Africa. “The global investment... →

SUNNY DISPOSITION The global investment sector is increasingly more interested in funding renewable-energy projects, such as solar farms, as opposed to coal projects

Nersa finally initiates public process for concurring with Mantashe’s power determinations

By: Terence Creamer 18th March 2020 The National Energy Regulator of South Africa (Nersa) published two consultation papers on Wednesday for two separate Ministerial determinations submitted by Mineral Resources and Energy Minister Gwede Mantashe for the regulator’s concurrence as required by the National Energy Regulator Act. By... →

No immediate power tariff impact, but first court ruling portends material future hikes

By: Terence Creamer 13th March 2020 The Eskom tariff increase for 2020/21 tabled before lawmakers this week provides no scope for any further hikes this year beyond those already sanctioned for April 1 by the National Energy Regulator of South Africa (Nersa) in previous price determinations and regulatory clearing account (RCA)... →

Bank forecasting ‘exponential growth’ for South Africa’s small-scale power market

By: Terence Creamer 11th March 2020 A leading South African bank is forecasting “exponential growth” for the country’s small-scale embedded generation (SSEG) market in the coming few years, having already committed to funding project pipelines worth more than R1-billion, mostly in the form of rooftop solar. Nedbank CIB energy... →

Nedbank CIB energy finance principal Duncan Abel

South African court sides with Eskom in 2018/19 tariff dispute

By: Reuters 10th March 2020 A South African court on Tuesday sided with State power utility Eskom in a dispute with energy regulator Nersa over electricity tariffs in the 2018/19 financial year. The court "set aside" Nersa's tariff decision and granted Eskom leave to apply to Nersa for additional expenses it incurred in... →

Opinion: Government can and should expedite the procurement of emergency power

10th March 2020 In this opinion article, Megan Adderley and Melissa Hendrickse of Webber Wentzel argue that, to enable a swift response to closing South Africa’s existing electricity supply deficit of 3 000 MW, it may be legally permissible and necessary for the National Energy Regulator of South Africa to... →

Lessons from Brazil and India as South Africa gets set to resume renewables auctions

By: Terence Creamer 10th March 2020 Auctions have proved extremely successful for driving down the cost of wind and solar photovoltaic (PV) tariffs in both Brazil and India in recent years and are, thus, set to remain the main instrument for introducing yet more variable renewable-energy capacity. Nevertheless, specialists from... →

Photo by Bloomberg
A wind farm operating in Brazil

Opinion: South African steel industry is an industry in distress

6th March 2020 In this opinion piece, South African Iron and Steel Institute secretary-general Charles Dednam outlines the difficulties being faced by the domestic steel industry and calls for the creation a ‘level playing field’ to enable the steel industry to contribute more fully in stimulating value-added... →

South African Iron and Steel Institute secretary-general Charles Dednam

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