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  • South Africa’s green hydrogen commercialisation strategy to be released for comment
    Cabinet has approved the publication of the Green Hydrogen Commercialisation Strategy (GHCS) for public comment.
    Minister in the Presidency Mondli Gungubele said the strategy would seek to ensure that South Africa became a major producer and exporter of green hydrogen and derivatives, and that the sector contributed towards growth and supported the country’s just energy transition.
    The GHCS follows on from the Hydrogen Society Roadmap, which was adopted by Cabinet in 2021.
    The release of the strategy for public comment also follows the recent South Africa Green Hydrogen Summit, where it was confirmed that South Africa has a potential green-hydrogen investment pipeline of R300-billion.
    It was also announced that the Green Hydrogen National Programme had been included in an updated list of Strategic Integrated Projects (SIPs) for accelerated development under the country’s Infrastructure Development Act.
    Projects identified as SIPs are theoretically placed on an expedited path to development, with prescribed and shortened timeframes for various project approvals and authorisations.
    Green hydrogen also features in government’s Just Energy Transition Investment Plan, or JET-IP, which outlines investments valued at a combined R1.5-trillion that should be made in the electricity, electric vehicle and green hydrogen sectors over the five years from 2023 to 2027.
    Public consultation on the JET-IP is expected to be finalised during February.
    2 min
  • Vehicle sales, exports surge; Naamsa NEV document ready for December release
    Domestic new-vehicle sales in November recorded an eleventh consecutive month of year-on-year growth.
    Total sales increased by 18.2%, to 49 413 units, compared with the same month last year.
    The new-passenger-car market reached 32 859 units in November – a 16.9% jump on the same period last year.
    The car-rental industry accounted for 20% of car sales, as the tourism industry continued to gear up for the summer holidays.
    Sales of new bakkies, vans and minibus taxis expanded by 20.8%, to 13 477 units.
    November medium-truck sales grew by 17.5%, reaching 900 units, while heavy-truck and bus sales increased by 22.6%, to 2 177 units.
    New-vehicle exports surged by 64.7%, to 34 310 units.
    Year-to-date vehicle export numbers are now 17.9% ahead of the corresponding period last year, at 326 516 units.
    Naamsa | The Automotive Business Council says the country’s new-vehicle market continued its resilient performance during November, despite a myriad of negative economic pressures such as rising interest rates, a dramatic increase in loadshedding, high fuel prices, a weak economy and ongoing supply shortages.
    “But, the new-vehicle market continued to outperform expectations, and with only one month to go in the year, it was running 13.6% ahead of the corresponding period last year.”
    The outlook for 2023 is, however, not as rosy, notes Naamsa.
    Economic growth in South Africa continues to be adjusted downwards and is now expected to reach 1.1% next year.
    “In view of the close correlation between new-vehicle sales and the country’s gross domestic product growth rate, single-digit growth in new-vehicle sales could be expected for 2023.”
    Exports are also at risk.
    “Given persistently high inflation and aggressive interest rate hikes in many advanced and developing countries at present, the risk to export sales reside on the downside.”
    New-Energy Document Set for Release
    Naamsa says it will release its Thought Leadership Discussion Document on New Energy Vehicles (NEVs) by the end of December.
    Naamsa CEO Mikel Mabasa says the industry “has been discussing and consulting extensively” during the past 12 months on the country’s road to NEV use and production.
    Only two South African plants currently produced hybrid vehicles, and none battery electric vehicles.
    Mabasa notes that South Africa-based vehicle manufacturers compete within their own global production networks for model allocations, and not with each other.
    The decisions on where in the world NEVs will be produced are influenced by the availability of a low carbon logistics network; green and low-cost energy; investment and infrastructure support; competitiveness versus other international plants; and a suite of government support incentives to lower the cost of production and stimulate demand.
    “Logically, South African [vehicle manufacturers] would require at least similar support as their overseas sister plants in order to compete on an equal footing,” says Mabasa.
    “It is for this reason that the industry has proactively worked on its proposals, which will be shared with other social and business partners in order to accelerate South Africa’s NEV roadmap without further delay.
    “It is clear that NEV transition support [from government] is urgently required for positive plant decisions to be taken.”
    Mabasa adds that South Africa has an obligation to ensure that its auto manufacturing base is protected, retained and strengthened, given that the country is at risk of losing more than 50% of its production volume as internal combustion engines will soon be phased out in Europe, its single biggest export market.
    5 min
  • TFR says lessons from slot-sale process will inform future third-party model
    Transnet Freight Rail (TFR) insists that valuable lessons have been gained from a recent attempt to sell 16 slots on its Cape and Container corridors, which resulted in only one applicant emerging as a potential operator of slots on the Cape Corridor between Kroonstad and East London.
    In fact, CEO Sizakele Mzimela dismissed suggestions that the process had failed, noting that it had been a pilot project and had proceeded in the absence of the policy certainty on third-party access that is likely to arise only once the National Rail Policy had been finalised, probably only in 2024.
    Third-party access has been identified as one of the main reforms to be pursued for implementation under government’s Operation Vulindlela initiative to unlock growth, investment and job creation.
    The proposed sale of rail slots by TFR initially garnered significant interest, with about 90 people having participated in a stakeholder session held at Esselen Park in April.
    A total of 19 entities then made formal expressions of interest, despite ongoing concerns about the design of the scheme.
    Particular anxiety had been expressed over the two-year duration of the contracts, which was seen as too short to ensure that returns could be made on what could involve significant capital investments in light of limited rolling-stock leasing options.
    Likewise, the sale of the slots on a ‘Voetstoots’ basis also raised some concern given the risk of disruption, owing to ongoing theft and vandalism on the rail network, including large-scale cable theft.
    Eventually, two companies made formal applications – two for the Container Corridor and one on the Cape Corridor – by the August 31 submission deadline.
    On November 25, TFR announced that only Traxtion Sheltam had successfully completed the first stage of the evaluation process, and only in relation to its Cape Corridor submission, as its diesel-locomotive offering for the electrified Container Corridor was not regarded as viable.
    Traxtion Sheltam is now required to complete the rest of the application process which entails fulfilling the Rail Safety Regulator requirements and other operational readiness requirements for the contract to begin as planned on April 1.
    Should it prevail, Traxtion Sheltam will be able to run three trains a week on the Kroonstad-East London line, which can handle both diesel and electric locomotives, with much of the cargo expected to be in the form of agricultural products.
    TFR provided no timeframe for the initiation of another slot-sale process but reported that ongoing discussions were under way with Operation Vulindlela and the Department of Transport (DoT) regarding the most appropriate model for introducing third-party access in future.
    The current model draws significantly on the market reforms undertaken by Deutsche Bahn, of Germany, which have been under way since 1994 and where there is significant rail-leasing capacity.
    Planning and operations command centre GM Bessie Mabunda said work was under way to adapt the model to South Africa’s specific conditions, while also drawing on reform lessons from markets such as the UK and Australia.
    Mabunda added that the initial contract with Traxtion Sheltam would also help TFR in refining its approach and “help us to frame a model that is a lot more appropriate to the environment that we find ourselves in”.
    “Transnet does not view the outcomes of this first phase as a failure,” Mzimela stressed, indicating that it had enabled TFR to understand the enablers that were required to implement third-party access.
    These insights would also help facilitate further conversations with policymakers with the understanding that policy certainty was likely to be critical to building investor confidence in, and momentum around, the reform process.
    “Transnet will continue to engage with relevant stakeholders on third-party access where appropriate, aligning with the work that the DoT continues to undertake towards the implementation of the White Paper...
    5 min
  • African battery pioneer Freedom Won riding loadshedding-fuelled growth wave
    South African battery storage pioneer Freedom Won, which is on a rapid, loadshedding-fuelled expansion path, is ramping up production at its newly expanded 15 000 m2 factory in Honeydew, Gauteng, to exceed the current production of 50 MWh of batteries every month – enough energy storage to support around 5 000 South African households in combination with solar power.
    The latest expansion, which is unlikely to be its last, forms part of an ongoing upscaling of the enterprise that belies its humble beginnings in 2009, when cofounders Antony English and Lizette Kriel decided to establish a company with some initial funding support from family members.
    In fact, Freedom Won, which was officially launched in 2012, started life in English’s double garage at his home on a wildlife estate in Kromdraai, Gauteng, with an eye not on stationary storage applications but rather electric mobility, specifically the conversion of petrol and diesel vehicles to electric.
    English, a University of Cape Town electro-mechanical engineering graduate, left his career in the mining industry to team up with marketing specialist and entrepreneur Kriel on the venture, having already converted his own Jeep Grand Cherokee to electric.
    The company discovered initial demand in the conversion of game-viewing vehicles and boats; markets with such exacting clients that English was forced to draw on all his engineering experience, as well as five years of self-directed research, to develop a sophisticated and robust lithium battery solution.
    That solution’s battery management system, or BMS, which has been refined over the years, remains at the heart of Freedom Won’s stationary batteries, which employ Lithium Iron Phosphate (LiFePO4) cells imported from China.
    English tells Engineering News that his electric-mobility vision drew him to the LiFePO4 chemistry, which was initially viewed as too expensive for use in stationary applications – a scenario that has since changed in light of the expansion of cell manufacturing in China.
    Nevertheless, Freedom Won remains open to other battery solutions, particularly in light of recent price volatility. However, English believes that LiFePO4 still has advantages – including inherent cell safety, long life, and mature cell manufacturing value chain – that are unlikely to be eclipsed in the near term.
    Given the strong domestic growth outlook, English is also increasingly convinced that the South African market is approaching the economies of scale required to make an investment in local cell manufacturing feasible.
    Such an investment, which would require technology and commercial partnerships, could also buffer the sector from the type of supply chain disruptions associated, for example, with Covid lockdowns and the recent KwaZulu-Natal floods, which threatened Freedom Won’s production output continuity in 2021.
    The recipient of the South African National Energy Association’s 2022 ‘Energy Shapeshifter Award’ may be interested in participating in such a venture, which is likely to require development finance and/or government support to materialise.
    In the meantime, the focus at the 330-employee-strong company is on expanding local battery production and integrating as much local content, by volume, as possible, given that the cells still make up the lion’s share of the battery’s value.
    Attention is also going towards potential new products, particularly in light of the strong growth in the commercial and industrial market segments, which has been enlivened not only by intensifying loadshedding, but by the surge in diesel prices.
    In addition, there is a growing realisation that integrating batteries into grid-tied solar photovoltaic installations materially increases the solar payback by allowing such installations to continue producing when the grid is unavailable, while also taking commercial advantage of time-of-use tariffs by discharging the batteries in peak tariff periods and charging the batteries when tariffs are low...
    7 min
  • Six-month ban imposed on export of copper scrap as South Africa seeks to combat theft
    The South African government has imposed a six-month ban on the export of copper and copper-alloy scrap, as well as most ferrous scrap as part of the first phase of a three-phase intervention designed to combat the rampant theft of metals used in public infrastructure.
    The economic damage of ongoing theft and vandalism has been estimated at R47-billion and has amplified both loadshedding and the disruption of freight and passenger rail services.
    Trade, Industry and Competition Minister Ebrahim Patel reports that the temporary prohibition of exports is effective from the publication of a Government Gazette on November 30 but says transitional arrangements have been included to allow for exports approved ahead of the ban.
    The temporary prohibition was approved by Cabinet earlier in the month and follows a comment period on a draft policy outlining possible restrictions on the export of ferrous and non-ferrous scrap published on August 5.
    More than 2 800 comments were received on the draft policy, which Patel says were considered prior to the finalisation of the new policy, which primarily seeks to dampen demand for stolen metals.
    During the first phase, the export of copper and copper-alloy scrap, the theft of which is said to be imposing the highest economic costs, will be entirely prohibited.
    Ferrous scrap exports have also been banned, but with several exceptions, including for aluminium and for stainless steel, as well as ferrous waste and scrap produced in the ordinary course of manufacturing processes.
    Patel says that a permit system, to be administered by the International Trade and Administration Commission (Itac), will also be imposed on semi-finished copper exports during Phase 1 and be continued into the second and third phases.
    Exports of other metals will not be prohibited but will instead be subject to a permit system administered by Itac.
    During Phase 2, a licensing system will be put in place for all copper trading in South Africa and sellers of copper waste and scrap metal will need to register under the Second-Hand Goods Act (SHGA), once amended to cater for the policy change.
    To register, applicants will need to show a tax-clearance certificate and dealers will be required to submit detailed purchase and sales information to a centralised database.
    Registered buyers of copper scrap will also only be allowed to purchase from registered sellers.
    However, it is envisaged that waste pickers will be exempt from the requirement to register under the SHGA, which will allow such individuals to sell all non-copper metals. In addition, registered dealers will be able to purchase non-copper metals from incidental unregistered sellers.
    During Phase 3, government will consider amendments to existing legislation, or the passing of new legislation, to create a dedicated metal trading licensing regime.
    “Prohibiting the use of cash in transactions involving waste and scrap and semi-finished metal products may also be introduced,” Patel reports.
    “In this case, no buyer will be allowed to be in possession of waste and scrap or semi-finished metal products unless it is backed up by an EFT or similar electronic record.”
    Individuals and entities may also be blacklisted from government contracts if they have contravened metal trading regulations.
    Patel says the new regime attempts to strike a balance between the needs of the overall economy and society relative to those of firms and individuals whose commercial interest will be negatively affected.
    ‘COST OF DOING NOTHING IS FAR HIGHER’
    “We've looked carefully at both sides of the equation . and on the one side these measures will limit, for a period, the export of these products, but scrap metal traders are still enabled to sell those products within the domestic market; beyond that period, exports would be permitted but on a regulated basis.
    “There is no question about it that there is going to be a commercial cost to some of the businesses that have built their economic model a...
    7 min
  • Shoprite starts testing its first fully electric truck
    The Shoprite Group has started testing a Scania heavy-duty electric truck as part of its delivery fleet.
    Robin Jooste, 28, from Mitchells Plain, Cape Town, has been selected to drive the vehicle.
    The 100% electric refrigerated truck can hold about 16 pallets. It has a fully electric cooling system, powered by the vehicle’s battery packs, and aided by solar panels on the roof of the vehicle.
    With a range of about 350 km, the vehicle will be used for localised deliveries, and will be recharged using renewable energy generated by Shoprite’s existing solar installations.
    The truck also features glow-in-the-dark signage, which will make it more visible when travelling at night.
    “As Africa’s largest grocery retailer, the Shoprite Group places significant focus on reducing its environmental impact across its operations,” says group chief supply chain officer Andrew Havinga.
    “One of the ways we are doing this is by increasing the energy efficiency of our truck fleet.
    “The acquisition of this truck . . . is another major move in this direction.”
    Shoprite says the addition of the electric truck forms part of the group’s ongoing efforts to reduce the environmental impact of its supply chain.
    It recently also acquired more than 100 Euro 5 low-emission trucks.
    More than 900 of its trailers are also fitted with solar panels, which enable the refrigeration and tailgate lift to continue running, even when the truck is switched off.
    2 min
  • Sasol focusing on three green-hydrogen clusters in South Africa
    Sasol energy business VP Priscillah Mabelane reports that the JSE-listed group has identified three priority clusters for the roll-out of its green hydrogen strategy, while also supporting government with plans to develop Boegoebaai, in the Northern Cape, into a green hydrogen and derivatives export hub.
    Speaking at the South Africa Green Hydrogen Summit in Cape Town, Mabelane said Secunda, the Vaal Triangle and Saldanha Bay had been selected for various initiatives, with specific green-steel-related projects being pursued in partnership with ArcelorMittal South Africa in the Vaal Triangle and Saldanha Bay.
    Sasol was pursuing an initial sustainable aviation fuel (SAF) opportunity, known as the HyShiFT programme, in Secunda in partnership with Linde, Enertrag and Hydregen, which will bid to secure support under Germany’s H2Global platform.
    Mabelane says the group has a longer-term vision to transform the OR Tambo International Airport into a global sustainable aviation hub.
    Enertrag new energy solutions head Dr Tobias Bischof-Niemz, who also spoke at the summit, said the installed Fischer Tropsch (FT) capacity at Secunda positioned Sasol with a significant “first-mover advantage”, given that Secunda was the only FT plant globally already producing a certified aviation fuel based on grey hydrogen.
    The H2Global mechanism was likely to prove crucial in unlocking the advantage, however, given that green hydrogen was a commodity, which meant it faced a “first mover disadvantage”, with later movers benefitting from the technology learnings of early adopters.
    Should the project receive such support, the HyShiFT programme would seek to displace 1% of the grey hydrogen currently used at Secunda with green hydrogen, which would be produced using a 200 MW electrolyser and 450 MW of renewable electricity to be produced in Mpumalanga.
    The green hydrogen would be used in Sasol’s FT reactors to produce a certified SAF.
    In the Vaal Triangle cluster, meanwhile, Sasol was partnering with ArcelorMittal South Africa to investigate the production of green hydrogen for use in steelmaking, and the capturing of unavoidable carbon dioxide.
    Sasol was also assessing the potential to supply other industries in the region, which currently use grey hydrogen in their production processes.
    The group is also repurposing an existing 60 MW electrolyser in Sasolburg to produce green hydrogen that will be used to pilot other green-mobility projects in partnership with the Industrial Development Corporation, including some Toyota Mirani fuel-cell vehicles and mine haulage trucks.
    In time, Sasol will also look to transition the 500 000 t ammonia and methanol produced at Sasolburg from grey to green hydrogen.
    In Saldanha, Sasol was also partnering with ArcelorMittal South Africa on a green steel project using green hydrogen, which could result in the re-opening of parts of the mothballed Saldanha Steel mill
    Meanwhile, President Cyril Ramaphosa offered an update on the Boegoebaai green hydrogen studies being facilitated by Sasol.
    The President said significant progress had been made on master plan for a green hydrogen special economic zone (SEZ) at Boegoebaai, with the aspiration to support 40 GW of electrolyser capacity by 2050.
    Mabelane said Sasol’s green hydrogen strategy had two imperatives: “One is to anchor the local demand [and] the second part is to drive the green hydrogen hub facilitation.”
    4 min
  • South Africa unveils R300bn green-hydrogen pipeline as its states ambition to be ‘destination of choice’
    A R300-billion investment pipeline has been identified under South Africa’s Green Hydrogen National Programme, which has been designated as a Strategic Integrated Project (SIP) for accelerated development under the country’s Infrastructure Development Act.
    Speaking at the South Africa Green Hydrogen Summit in Cape Town on Tuesday, President Cyril Ramaphosa argued that government was seeking to use the programme to position the country as an “investment destination of choice” as countries in Europe and Asia sought to import green hydrogen to both decarbonise and bolster their energy security.
    South Africa, the President said, had the potential to produce up to 13-million tons of green hydrogen and derivatives a year by 2050.
    To do so would require between 140 GW and 300 GW of renewable energy, which would represent a massive scale up in a context where South Africa had procured only about 7 GW of wind and solar since 2011.
    South Africa’s existing renewables generators are currently insufficient even to cover the electricity supply gaps left by Eskom’s failing coal fleet, which has resulted in the country entering its most intensive period of loadshedding since power cuts were first introduced more than a decade ago.
    Ramaphosa said South Africa’s strategy would embrace the export of green hydrogen and derivative products, such as green steel, sustainable aviation fuel, ammonia and fertilisers. The country would also seek to position itself to manufacture electrolysers, fuel cells and renewable-energy components.
    He again stressed South Africa’s “inherent” green hydrogen production advantages, owing to its world-class wind and solar endowments.
    These advantages were amplified, moreover, by the fact that companies such as Sasol and PetroSA had expertise in using hydrogen in the production of synthetic fuels and chemicals, with South Africa already producing 2.4-million tons of grey hydrogen yearly for domestic consumption.
    “We are driving regulatory and legislative reform to make our economy more competitive, to attract more investment and to create more jobs,” he added.
    A total of 19 green hydrogen projects had been identified for development, nine of which having been formally registered with Infrastructure South Africa, an initiative of the Ministry of Public Works and Infrastructure and The Presidency to accelerate infrastructure investment.
    Public Works and Infrastructure Minister Patricia de Lille announced that the Green Hydrogen National Programme had been included in an updated list of SIPs to be listed in an upcoming Government Gazette.
    Projects identified as SIPs are theoretically placed on an expedited path to development, with prescribed and shortened timeframes for various project approvals and authorisations.
    De Lille confirmed that the Gazette would include the Prieska Power Reserve, the Ubuntu Green Hydrogen Project, the Hydrogen Valley developments, the Boegoebaai Green Hydrogen Development and the Saldanha Bay Hydrogen Project.
    Providing an update on the flagship Boegoebaai project, Ramaphosa said that Sasol and the Northern Cape provincial government had made significant progress on the master plan for a green hydrogen special economic zone (SEZ), which aims to support 40 GW of electrolyser capacity by 2050.
    “This would require approximately 80 GW of renewable energy, which is almost double South Africa’s current installed electricity generation capacity.
    “Transnet has issued a request for proposals for the development of the port and rail project, which could see the port developed by 2028.”
    Western Cape Premier Alan Winde highlighted that he and Northern Cape Premier Zamani Saul had signed heads of agreement for the two provinces to collaborate on the so-called Western Southern African Development Community Green Hydrogen Corridor to produce green hydrogen for the global and local markets.
    Under the agreement, the provinces, which both have green hydrogen strategies, will seek to kickstart projects such as...
    6 min
  • New-vehicle availability, tourism expected to recover in 2023 – Zeda CEO
    Zeda will invest in the renewal of its fleet next year, with the group expecting the supply of new vehicles to stabilise in 2023, says CEO Ramasela Ganda.
    Zeda is a mobility specialist that incorporates the Avis and Budget brands. It is active in the vehicle leasing and rental sectors, and is set to list on the JSE on December 13, following its unbundling from Barloworld.
    The global automotive market has seen the persistent short supply of new vehicles on the back of a semiconductor shortage, Covid-19-related shutdowns, trade wars and the war in Ukraine.
    Zeda believes it may have perhaps overpaid for new vehicles in recent years, as it has been unable to source all of its desired vehicles, with lower-specced units not always available.
    On the flipside, however, a normalisation of vehicle availability will mean that buoyant used-car margins will normalise, something which is currently boosting Zeda’s bottom line as it pushes these units into the market following the completion of service, says Ganda.
    Zeda has 14 Avis car dealerships, as well as an online sales channel.
    Apart from the improved availability of new vehicles, other good news for Zeda is that Ganda also expects a “significant recovery” in the South African tourism market as Covid-19 abates, which should boost vehicle rental numbers.
    While car rental demand has improved, it is yet to return to pre-pandemic levels.
    Zeda currently has a 79.1% utilisation of its rental fleet.
    Ganda notes that Zeda has worked hard in recent years to diversify the business from its traditional tourism focus by, for example, the addition of vehicle subscriptions and heavy-vehicle leasing.
    Zeda on Monday delivered its financial results for the year ended September 30, ahead of its debut on the JSE.
    Group revenue was up 6.6%, to R8.18-billion, while operating profit increased by 52.8%, to R1.26-billion.
    The car rental business grew revenue by 9.7% to R5.98-billion, while operating profit surged 159.3%, to R861-million.
    In the leasing business (Avis Fleet), revenue was down by 0.9.%, to R2.19-billion, impacted by an adverse outlook on parts pricing, interest rate hikes and foreign currency fluctuation.
    Operating profit declined by 18.6%, to R403-million.
    “I look forward to leading this solid business into the future,” says Ganda.
    “Today, Zeda Group is the largest and only integrated mobility provider in sub-Sahara Africa offering both short-term car rental and long-term fleet management and leasing solutions across 11 countries in Africa.”
    4 min
  • Embedded generation project pipeline stands at 9 GW – Ramaphosa
    President Cyril Ramaphosa reports that the pipeline of confirmed private embedded generation projects has increased to 100 with a total combined capacity of around 9 000 MW.
    The President confirmed the figure in a series of written responses to Parliamentary questions posed by Democratic Alliance permanent delegate to the National Council of Provinces from the North West, Carin Visser.
    The questions focused on what progress, if any, had been made since both the President’s State of the Nation address, which had electricity security as a major theme, and his July 25 announcement of a series of initiatives to tackle intensifying loadshedding.
    South Africa has experienced its worst-ever year for rotational power cuts with more than 155 days affected by the beginning of November and the outlook for the coming two years remaining bleak.
    In his written responses, Ramaphosa said the amendment to Schedule 2 of the Electricity Regulation Act – which allowed generation facilities below 100 MW in size to wheel power across the grid and to sell power to multiple customers without requiring a licence – had created a vibrant market.
    He added that the 100 MW licensing threshold was in the process of being lifted entirely by a further reform to Schedule 2 that was in progress.
    The registration process with the National Energy Regulator of South Africa (Nersa) for such generation projects had also been “substantially simplified” to shorten timeframes for project approval.
    “These measures will enable significantly more generation capacity to be added to the grid from independent power producers (IPPs).”
    The President also noted that a National Energy Crisis Committee had been established to oversee the implementation of the Eskom and non-Eskom initiatives announced in July and provided the following update on the non-Eskom supply interventions, including:
    the submission by Eskom of a net-metering tariff for residential customers to Nersa, with work under way to develop a feed-in tariff mechanism to further incentivise uptake of rooftop solar;
    The development by Eskom of a standard offer programme to purchase available power from existing installations, as well as an emergency generation programme to procure power that can be made available at times of peak demand;
    the recruitment of skilled personnel, including former Eskom staff, to support operational improvements at the utility, with three appointments of former Eskom employees having been made at power station manager level for Kendal, Koeberg and Medupi; and
    the importation of an additional 200 MW of power from neighbouring countries, with negotiations under way to secure over 1 000 MW of additional power subject to agreements being finalised.
    It was also highlighted that several municipalities were at various stages of procuring power independently, while the President offered a mixed progress report on government’s procurement of additional utility-scale generation from IPPs.
    “The first three preferred bidders from Bid Window 5 have signed project agreements and additional projects are expected to reach this milestone within the coming weeks,” he wrote, without making specific reference to the fact that a total of 25 wind and solar projects had meant to have progressed to construction under the round, but were facing difficulties in reaching financial close.
    “Three projects from the risk mitigation procurement programme representing 540 MW of solar photovoltaic and 225 MW of battery storage have reached financial close and commenced construction,” he added, again without stating that most of the projects, representing about 2 000 MW, had not progressed as planned.
    “The amount of new generation capacity to be procured through Bid Window 6 has been increased from 2 600 MW to 4 200 MW. [and] a request for proposals (RFP) has been released for over 500 MW of battery storage, which will be followed by a further RFP for 3 000 MW of gas power,” the President wrote.
    Eskom, meanwhile, was also...
    7 min

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