Roll out more renewable power, urges Peters

This would be in addition to the independent power producer (IPP) procurement programme to acquire 3 725MW of "clean" power from the private producers.

Extending the programme, says Aphane, would create certainty about the roll-out of renewable energy technologies, especially among potential investors with a long-term goal of setting up local manufacturing facilities. He said a roll-out of 1 000MW of power a year was ideal.

The government has been applauded for the IPP procurement programme, but questions have been asked about its long-term plans beyond the present 3 725MW allocation.

There are moves under way to secure additional renewable energy capacity. Energy Minister Dipuo Peters told an IPP bidders' conference about plans for additional power.

"I am currently considering a second determination which will provide additional megawatts to the programme through the required internal processes.

"My decision in this regard will be guided by the need to create a rolling programme, which will provide for sustainable employment through local manufacturing, especially in the key components for solar and wind-power generation," Peters said.

The department had called the conference to discuss the IPP programme, which covers power from wind, solar thermal, solar photovoltaic, biomass, biogas, landfill gas and small hydro sources.

Peters said there was no impediment to the renewable energy industry establishing manufacturing facilities in South Africa.

"I also believe that a decision around a second determination, together with the IRP2010 (Integrated Resource Plan 2010), will give the necessary comfort for the private sector to invest in manufacturing plants in South Africa."

The IRP2010 is South Africa's 20-year plan to determine long-term electricity demand and how it should be met.

The department is implementing the IPP procurement programme in so-called bid windows. It has already announced preferred bidders for the first and second bid windows.

Projects in the first bid window were supposed to reach financial close in June and a delay in financial close for these projects has raised eyebrows, with suggestions that some of the projects were struggling to raise finance.

Speaking on the sidelines of the conference, Aphane said: "We must refute suggestions that the government is trying to help companies that cannot raise money." He said the delay was caused by negotiations between the department and Eskom, the buyer of the renewable energy, over government guarantees.

Source: Business Day via I-Net Bridge.