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Renewable power players queue up

The Department of Energy has received more than 400 applications, significantly more than expected, from independent power producers (IPPs) who want to assist in supplying the 42 percent renewable energy target in the next 20 years. Department director-general Nelisiwe Magubane said in Pretoria yesterday that the procurement process was under way for IPPs that would produce 3 725 megawatts of electricity by 2016, with the bidding process having opened on August 3. “Bidders are very keen to participate in the renewable independent power producers programme. We have received more than 400 registrations to date and 200 bidders have already paid the registration fee of R15 000,” Magubane said. The white paper on energy of 1998 stipulates that the department has to meet a 10 000 gigawatt-hour target for renewable power by 2013. “Having a high dependency on coal currently and having a high potential to generate renewable energy, we felt we needed to expand the allocation that would have achieved the 10 000GWh to at least triple that, hence the allocation is capped at 3 725MW,” she said.

“We believe that a procurement programme of this magnitude will address both the energy needs as well as provide sustainable growth for the renewable energy industry.” Magubane said most of the renewable IPPs would be located in remote areas with limited economic activities in order to help relieve the country’s rural unemployment. The energy supplied by the IPPs would consist of 1 850MW of onshore wind; 1 450MW of solar photovoltaic; 200MW of concentrated solar and a 175MW combination of biomass, biogas, landfill gas and small hydro. The department said the renewable IPP programme was not intended to replace the botched renewable energy feed-in tariff (Refit) programme launched under the provisions of the Electricity Regulation Act of 2006. The programme might be implemented soon depending on the successful amendment of the primary legislation to allow for the execution of a programme of this nature.

Magubane said the Refit was expected to play a vital role in bringing small projects, comprising IPPs producing less than 5MW, into the grid. “I believe it will give the local community an opportunity to initiate their own generation businesses and sell power to the national grid,” she said. Together, these small projects would produce 100MW of the 3 725MW target. Eskom was not allowed to bid for this programme, but Magubane said it would buy the renewable energy.

Source: iol.co.za

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Renewable power players queue up

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