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Articles in category: Utilities
Financial problems at Eskom have pushed the government to look into selling stakes in state companies to free up funds to update the utility and ease power blackouts.
President Jacob Zuma's ANC has long been reluctant to sell company stakes to ease the strain on the budget, for fear of upsetting powerful labour union allies who say this would cause job losses.
But state-owned Eskom urgently needs 250 billion rand to upgrade its infrastructure and this has left the ANC, managing a national debt of 50 percent of GDP, with little choice but to rethink the state ownership model ...(Read Full Article)
South Africa has suffered its worst power shortages in six years this month due to creaking power plants and emergency maintenance. Eskom is facing a $20-billion funding shortfall over the next four years, forcing the government to consider selling state assets to bail out the utility.
The government announced on Thursday that it would launch a private sector-led coal-fired power plant programme by January 2015, which should add 2 500 MW of generation capacity to the grid.(Read Full Article)
The South African government is seeking bids from international and domestic advisers with expertise to design, develop and implement programmes for the “procurement of energy from independent power producers (IPPs)”.
The request for proposals (RFP) has been issued by the Development Bank of Southern Africa (DBSA) on behalf of the Department of Energy (DoE) and the National Treasury and appears to be the precursor to bidding processes that should extend government’s IPP procurement reach beyond renewable energy.
However, a similar RFP was released in August 2013, which failed to yield any procurement processes.(Read Full Article)
Power utility says it has signed coal supply deal with Anglo American’s black empowerment company to have coal delivered from New Largo project to Kusile(Read Full Article)
A R39 billion power station to help ease South Africa’s energy demand is expected to be built in Limpopo.
Premier Stan Mathabatha revealed this in an interview with The Star along with the news that a deal was clinched during his two-week trip to China recently.
The planned power station is set to be the fifth operating from Limpopo. It will supply electricity to new industry in Limpopo that is in the planning phase. Eskom operates the coal-fired Matimba power station, a 3 990 megawatt plant, at Lephalale – the same area where the Medupi power station is being built.,
ESKOM is challenging charges that its executives are in contempt of court and should go to jail for failing to deliver documents related to a R4.3bn tender to replace six steam generators at Koeberg nuclear power station.
In answering affidavits Business Day has seen, the power utility says accusations that it willfully failed to comply with a court order to hand over the documents are "frivolous in the extreme and … a gross abuse of court process".
These arguments are set to be tested in court on Wednesday after Westinghouse Electric SA filed a contempt of court application at the ...(Read Full Article)
Danish companies are keen to set up a green hub on renewable energy in South Africa, with an eye on developing markets into Southern Africa, Danish Minister of Trade and Development Cooperation Morgens Jensen has told Engineering News Online. He said he saw tremendous opportunity in South Africa, particularly in terms of wind energy, but that Danish companies needed to expand into Africa to make their investments worthwhile.(Read Full Article)
COUNTRIES wanting to sell their nuclear technology will be able to parade their wares in a pre-procurement workshop to be hosted by the Department of Energy that will include representatives from other state entities.
On Sunday, the Department of Energy issued a statement saying the first of these workshops would begin with Russia and would take place before the end of October.
According to the statement, the vendor parade workshops entailed vendor countries presenting their nuclear technology offerings.(Read Full Article)
THE three most advanced coal companies in the Waterberg region — Exxaro, Resource Generation (Resgen) and Waterberg Coal Company — are working together with Sasol to develop the area’s coal resources most efficiently and sustainably to avoid some of the problems that have evolved in the Mpumalanga coal fields, Exxaro executive for business development Ernst Venter said on Wednesday.
Mr Venter, who was answering questions at Wednesday’s Fossil Fuel Foundation Waterberg coal conference in Lephalale, said he was confident the mines would together be producing about 30-million tons a year of coal for export within the next 20 years.(Read Full Article)
President Jacob Zuma has given authority to Energy Minister Tina Joemat-Pettersson to sign an agreement for the safe use of nuclear energy with France. “President Jacob Zuma has, in terms of section 231 of the Constitution of the Republic of South Africa, granted authority to the Minister of Energy, Ms Tina Joemat-Pettersson, to sign an agreement on Cooperation in the Development of Peaceful uses of Nuclear Energy, between the Government of the Republic of South Africa and the Government of the French Republic,” said Presidential spokesperson Mac Maharaj.
Toshiba’s Westinghouse Electric Company on Monday launched an expedited review application in the South Gauteng High Court challenging Eskom’s decision to award a R4.3-billion contract to Areva, of France, for the replacement of steam generators at the Koeberg nuclear power station, in Cape Town.(Read Full Article)
Much confusion has followed an announcement on Monday afternoon by Russian state nuclear agency Rosatom of an “agreement on strategic partnership in nuclear energy” signed between the Russian and South African governments.
It seems though that the agreement is merely a framework agreement that may or may not lead to the procurement of the reactors from Rosatom. The agreement provides for the two countries to work together to develop a local nuclear industry.
Power parastatal Eskom has signed a contract that will see the replacement of steam generators at the Koeberg nuclear power plant, it confirmed.
“Eskom is pleased to announce that the contract between it and Areva NP was signed on Friday,” said Eskom on Saturday.
The signing of the contract comes as Westinghouse Electric, a manufacturing company, withdrew its high court application to interdict Eskom. Westinghouse had filed an urgent application to the court in order to see documentation relating to Eskom’s awarding of the R4 billion tender.
While the Department of Energy (DoE) has indicated that standard documents would be developed to reduce transaction costs related to bidding for the small projects Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), local advisory firm Infrastream director Grant Berndsen has urged prequalified bidders not to delay their preparation for the first Stage 2 submission in anticipation of these documents being released.(Read Full Article)
THE government hopes to contain electricity tariff increases to a maximum of 12% over the next four years in an effort to balance Eskom’s financial sustainability with the potential damage of higher tariffs to the economy.
The recommendation is believed to be part of a package of measures put forward to the Cabinet by an interministerial task team charged with finding a solution to Eskom’s financial crisis, according to several participants in the process.
Eskom faces a revenue shortfall of R225bn, which must be met through a combination of increased tariffs, savings and cash, most likely in the ...(Read Full Article)
Eskom acting CEO Collin Matjila on Wednesday told MPs there had been no bias in the tender process that led to French company Areva securing the contract to replace six steam generators at the Koeberg nuclear power plant.
"We believe the process was beyond reproach," Matjila told members of Parliament's economic development and energy portfolio committees.(Read Full Article)
ESKOM, under newly appointed CEO Tshediso Matona — currently the director-general of the Department of Public Enterprises — will be more tightly controlled by the department in future.
Not only will Mr Matona want to improve on what he says was Eskom’s failure to account properly, but he will have to ensure that the utility complies with a proposed bill that the department is working on.
The Government Shareholder Management Bill, which the department hopes to submit to Parliament by the end of the fiscal year, will set the legislative framework in which all state-owned companies will have to function.(Read Full Article)
THE Cabinet decided on Wednesday to appoint Department of Public Enterprises director-general Tshediso Matona as the new CEO of Eskom.
Mr Matona will take up his new position from September 1. Eskom has been under the stewardship of acting CEO Collin Matjila since April.
In making the announcement, Public Enterprises Minister Lynne Brown said she had “absolute faith” in Mr Matona who brought with him a wealth of experience and was conversant with the challenges facing Eskom.(Read Full Article)
France’s Areva won a contract to replace six steam generators at South Africa’s Koeberg nuclear power plant, state utility Eskom said on Saturday.
The refit is part of a programme to install up to 9,600 megawatts of new nuclear power by 2030, as Africa’s largest economy tries to overcome chronic electricity shortages and slow greenhouse gas emissions.
The vast majority of South Africa’s electricity is generated from coal and the government is struggling to ensure that supply stays a step ahead of growing demand.(Read Full Article)
ESKOM has put in place short-term measures to limit the effects of the disruption the labour strike in the metal and engineering sector has caused to the construction of its Medupi power station.
But the power utility expressed concern on Wednesday that if the three-week-old industrial action persisted it could delay the completion date.
The commissioning of Medupi, already postponed several times over several years, is critical to easing power supply constraints that have held back South Africa’s economic growth and caused periodic load-shedding.(Read Full Article)
France will be making a sound investment by taking a stake in Alstom, its chief executive said on Monday, adding however that the government would be buying in too late to have a say in the use of proceeds from its tie-up with General Electric.
France won an option to buy 20 percent of Alstom from conglomerate Bouygues on Sunday, in an eleventh-hour deal clearing the way for the agreed sale of most of Alstom's energy business to GE.(Read Full Article)
Thirteen municipalities, including three metros, want to hike their electricity prices above the nationally recommended increase.
The National Energy Regulator (Nersa) was to hold public hearings today in Pretoria on the applications. The nationally recommended electricity price increase for municipalities is 7.39 percent.
This is the guideline price increase set by Nersa, and it’s the overall increase for each municipality, so within that, some municipal customers may be charged greater increases and others less(Read Full Article)
Business leaders surveyed by AT Kearney, the global management consultancy, have more confidence in South Africa as an investment destination than they do in many western European countries and emerging powerhouses like Chile and Malaysia.
One reason is Pretoria's much lauded renewable energy program which in the view of London-based risk analysts IHS has made South Africa "the world's most attractive country for solar energy" investment. Since late last year, a growing parade of solar and wind power projects has begun feeding hundreds of badly needed megawatts into South Africa's national grid.(Read Full Article)
Eskom’s senior executives will not take their annual bonuses for the financial year 2013/14 in light of the R225-billion revenue shortfall experienced over the five-year period between 2013 and 2018.
The Interim Chief Executive, Mr Collin Matjila says, “The top executives at Eskom have acknowledged the financial constraints by agreeing to forgo their annual performance bonuses this year as one of the efforts to cut costs.(Read Full Article)