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Electricity Minister Kgosientsho Ramokgopa reports that the country's next renewables bidding round will "not be location agnostic" and will seek to direct projects to areas where there is sufficient grid connection capacity available.

"This time we're going to be specific around where these location should be for the new projects because we want to ensure that there's some degree of alignment between the projects and the availability of transmission capacity," the Minister said during his latest update on the implementation of the Energy Action Plan.

Hitherto, the Renewable Energy Independent Power Producer Procurement Programme, which has been under way since 2011, has not had a specific geospatial dimension, with connections guided by Eskom's Generation Connection Capacity Assessment (GCCA).

During the most recent bid window, or Bid Window Six, none of the 23 wind projects that bid for a 3.2 GW allocation were selected as preferred bidders, however. This, after Eskom claimed that the grid capacity in the areas where the projects were proposed had been fully absorbed.

Bid Window Seven was initially planned for launch in mid-year, but the deadline was missed, with the Independent Power Producer Office having indicated that the programme could be initiated only once there was clarity from Eskom on what connection capacity remained available.

At the end of October, Eskom published an updated GCCA showing that there was no longer any connection capacity in the Eastern Cape, the Northern Cape, the Western Cape and the Hydra Central grid area. However, the document indicated that there was 19.9 GW of grid capacity elsewhere in the country.

Eskom has also since acknowledged that some 4 GW of grid capacity in the Eastern and Western Cape provinces could be unlocked immediately by allowing for 10% curtailment and has promised to publish an addendum to the GCCA outlining its approach in this regard.

Curtailment involves the active reduction of output from wind and solar plants in response to system security needs or temporary transmission capacity constraints and is widely used by system operators globally to optimise the way the grid is utilised.

Ramokgopa, who previously indicated that Bid Window Seven would be launched in December, offered no confirmation regarding timeframes, saying only that efforts were being made to ensure that the next round did not suffer the same fate as the previous bidding round by matching "projects to grid capacity".

"This is so that we're able to accelerate the progression of those projects and they're able to reach financial close as speedily as possible."

JET-IP IMPLEMENTATION PLAN & IRP UPDATE

He also reported that the Just Energy Transition Investment Plan (JET-IP) implementation plan had been approved by Cabinet and would include the release of financial resources for the development of transmission infrastructure that could assist with the decarbonisation of the country's electricity industry.

Several developed countries have pledged some $11.9-billion to support the JET-IP, with various policy loans having already been extended under the framework.

Forestry, Fisheries and the Environment Minister Barbara Creecy, who will lead South Africa's delegation to COP28 in Dubai later this month, would release details of the implementation plan, Ramokgopa said.

He also reported that a larger transmission funding plan would be presented to Cabinet at its next meeting, which could help unlock private finance and skills for the development of new grid infrastructure.

Meanwhile, the updated Integrated Resource Plan (IPR) was also likely to be presented to Cabinet by Mineral Resources and Energy Minister Gwede Mantashe at its next meeting, after which it would be released for public comment.

"At an administrative level and a technical level, those conversations have happened, and now it [the IRP] gets to be elevated to the level of Cabinet and I'm sure that, post-Cabinet, we'll be able to share with you what...

Richards Bay Transnet Port Terminals (RCB TPT) says it "may" suspend the processing of trucks bringing cargo into its terminals by road.

Only trucks whose vessels have been already nominated shall be processed, says Transnet regional corporate affairs manager Msawakhe Mayisela.

This follows as rail services to Richards Bay - also under the purview of State-owned rail and ports operator Transnet - have been steadily declining to the point of nonperformance.

The truck suspension is being implemented "in the interest of public safety on the roads in the uMhlathuze local municipality", notes Mayisela.

"An urgent meeting with customers and all relevant stakeholders will be held soon to discuss the new developments. RCB TPT regrets the inconvenience caused."

Mayisela's statement comes as Transnet yesterday - on November 16 - issued a notice to its customers saying there had indeed been a "suspension of road motor transport, due to truck congestion on public roads".

"The road congestion in Richards Bay has reached uncontrollable levels, such that the safety of road users within the city has been at risk for months since the increase in truck traffic volumes."

According to the notice, issued by RCB TPT terminals managing executive Thulasizwe Dlamini, the Umhlathuze local council has warned of legal action against Transnet on the back of the sharp increase in truck traffic and subsequent mushrooming of make-shift staging areas caused by trucks waiting to enter the port.

"In our last engagement with the city manager on Tuesday, 15th of November, he advised that the city will be instituting legal action against the Port of Richards Bay.

"…Even when trucks have been booked, the tempo at which the trucks arrive at port gates at a particular time of day sometimes far exceeds the tempo in which trucks can be processed at the permit offices, as well as at the terminal stockpiles.

"This leads to a buildup of trucks outside the port gates on surrounding roads and on the N2," writes Dlamini.

"The City of Umhlathuze does not have a truck-staging area that can accommodate [this] volume of trucks.

"The port itself was not designed for this amount of trucks. This gives rise to a logistics nightmare in and around the port."

Dlamini says this leaves the terminal operator with "no choice but to immediately freeze all vessel nominations for vessels that bring in cargo via road transport".

Dlamini then also suggests that the only alternative is for the private sector "to propose a far more superior traffic management solution that could create order in Richards Bay and completely eliminate the staging of trucks on the N2, almost immediately; a solution that ensures the safety of road users and a solution that does not require the deployment of law enforcement personnel to manage trucks on the N2".

According to the notice, the urgent meeting to address the problem has been set for all affected stakeholders for November 21.

RFA Outraged

Road Freight Association (RFA) CEO Gavin Kelly says Transnet's answer to truck congestion should not be to close the Richards Bay port because it "cannot efficiently and sustainably do the work required".

"You are killing the country!

"The first question to ask Transnet, as well as President Cyril Ramaphosa, is why road congestion in Richards Bay has 'reached uncontrollable levels'?"

"Simply put - the rail infrastructure has been allowed to decay and collapse.

"That lies squarely at the feet of Transnet; those given the accountability and responsibility to ensure Transnet is properly run and managed; and, ultimately, the president."

Kelly says the RFA has "a very clear proposal: Give the ports and the railways to private sector.

"Let us run these efficiently and sustainably. The promises of concession of port terminals and access to rail have all evaporated. Empty promises!

"Logistics is a private sector game. Decent and good competition is required to ensure we move goods (and even people) along the corridors of our cou...

Creamer Media editor Terence Creamer discusses Eskom's update on the implementation of its Transmission Development Plan (TDP), as well as the implications for industry and developers.

The hockey-stick-curve shape of Eskom's ten-year execution plan for delivering much-needed new transmission infrastructure continues to come under intense scrutiny from domestic industry, with warnings that the dearth of work in the early years is undermining their immediate sustainability and prospects of participating in the later ramp-up.

Eskom's current Transmission Development Plan (TDP) outlines the need for the installation of more than 14 000 km of new high-voltage powerlines and 105 865 MVA of transformer capacity for the ten-year period to 2032.

Eskom received an exemption from the regulator not to publish a new ten-year plan for the period from 2023 to 2033, pending an update to the Integrated Resource Plan, which will provide new demand and supply assumptions.

Regardless of the changes, however, it is widely accepted that there is a need to accelerate the pace at which new grid infrastructure is deployed, with the connection of new generation projects increasingly facing transmission-related risks.

This is reflected in the current TDP, which outlines a 325% increase in powerline delivery over the ten-year horizon when compared with actual roll-out rates achieved in the prior ten years, as well as a 600% increase in transformer capacity period-on-period.

Eskom Transmission MD Segomoco Scheppers told participants in a TDP forum this week that the expansion was required to connect 53 GW of new generation capacity by 2032, mainly from variable renewables sources.

He also confirmed that Eskom had further refined the TDP implementation plan to prioritise 47 projects to open 37 GW of connection capacity, including 25 transformer projects at existing substations to unlock 13 GW in the next five years.

However, the execution plan is heavily back-end loaded with the project-delivery tempo accelerating sharply only from the 2027 financial year onwards.

For example, while 3 418 km of powerlines are projected to be installed between the current financial year and 2028, 1 742 km of that is planned for the 2028 financial year, with fewer kilometres expected to be delivered in 2024 and 2025 than the 326 km installed in the 2023 financial year.

The transformer execution schedule is similarly shaped, with only 160 MVA of the 28 850 MVA to be installed in the current financial year against 15 460 MVA in the 2028 financial year.

Eskom acknowledges that the current implementation schedule is problematic, particularly for a domestic construction industry that has been severely weakened by a combination of a sharp pullback on projects from financially distressed State-owned companies, lockdowns and violence on several construction sites.

Eskom estimates that there is currently capacity to deliver 800 km of powerlines yearly "at a stretch"; well short of the 1 400-km-a-year average outlined in the TDP and the anticipated yearly delivery peak of 2 700 km that will be required to address the slow implementation ramp-up.

It also warns of transformer supply-chain constraints, with only one single local supplier for Class 3b transformers and no local supplier for Class 4 transformers, as well as insufficient local steelmaking capacity for the execution period beyond 2027.

However, it is not overly optimistic about the prospect of "flattening the curve", given the backlogs that developed during the period when it had insufficient financial resources to develop the pipeline and execute the projects.

Following the R254-billion debt-relief package approved earlier this year, Scheppers insisted that Eskom Transmission, which is in the process of being restructured into the National Transmission Company South Africa, had the TDP funding it requires for the coming three to four years.

He added that efforts were under way with government and other stakeholders to assess funding and delivery options for the period thereafter. However, there were no immediate plans to crowd-in private finance and execution capacity.

Instead, Eskom would seek to beef ...

Eskom has confirmed that it will release a curtailment addendum to its recently published Generation Connection Capacity Assessment (GCCA) that will unlock 4 GW of connection capacity immediately in the grid-constrained Eastern and Western Cape provinces.

Published at the end of October, the GCCA indicated the grid capacity in the two wind-rich regions had been fully absorbed, along with that in the Northern Cape and Eskom's Hydra Central grid area, which borders the Cape provinces and the Free State.

The document indicated that there was 19.9 GW of grid capacity elsewhere in the country and stated that curtailment studies were being undertaken to provide "developers with an alternate option if they are still keen to connect in these constrained areas".

The results, Eskom added, would be shared either in next release of the GCCA or in an addendum, but only after approval from the regulator.

The lack of a framework came to the fore last year when none of the 23 wind projects that bid for a 3.2 GW public-procurement allocation was selected to proceed on the basis of grid "depletion".

In addition, the Independent Power Producer Office (IPPO) confirmed with Engineering News recently that the ensuing Bid Window Seven, which was initially expected to be launched in the middle of 2023, had been delayed partly because of ongoing uncertainty regarding Eskom's approach to curtailment.

However, Eskom Transmission MD Segomoco Scheppers confirmed on Wednesday that a renewable-energy curtailment framework would indeed be implemented.

In an address on the implementation of the Transmission Development Plan (TDP), Scheppers said the framework would "ensure that new grid integration capacity, especially for wind, can be unlocked in the quickest possible time at the least cost to the economy."

Strategic grid planning senior manager Ronald Marais also used the platform to confirm that the curtailment framework would be published in the form of an addendum to the GCCA, rather than in the next edition of the document.

Marais also stressed that curtailment was the optimal way to expand the network at least-cost and would, thus, remain a feature, albeit at variable rates, even as new grid capacity was added in future.

This was confirmed in a recent assessment by Eskom and two European transmission system operators - 50Hertz of Germany and Elia of Belgium - which showed that curtailment of up to 10% offered more economic value than new grid investments.

Technical operation senior manager Comfort Masike underlined this point at the TDP forum by stating that transmission companies globally used curtailment not only to manage system frequency but because it was also the most cost-effective way to manage grid capacity.

Curtailment involves the active reduction of output from wind and solar plants in response to system security needs or temporary transmission capacity constraints and has been widely used by system operators to facilitate the introduction of renewable generators in a context of grid constraint.

A cost comparison between allowing 4 GW of additional wind generation in the Western Cape with 10% curtailment against adding the two 765 kV and one 400 kV powerlines that would otherwise be require had yielded positive results.

The model pointed to yearly curtailment costs of R650-million, which were significantly lower than the R2.6-billion annual project costs associated with the additional grid infrastructure.

Masike said curtailment, thus, met the least-cost criterion embedded in the country's Grid Code.

The South African framework, he added, would stipulate that no single plant could be curtailed by more than 10% in a year and that curtailment be governed by operational guidelines that stipulated both fairness and that the measure be used only when necessary to alleviate congestion.

Eskom was also proposing that compensation for curtailment be a contractual matter between buyers and sellers. In the case where Eskom was the designated buyer,...

More people work in the energy sector today than in 2019, almost exclusively because of the growth in clean-energy sectors, which have employed more workers than fossil fuels since 2021, a new International Energy Agency (IEA) study shows.

The 'World Energy Employment 2023' report states that energy sector employment rose by 3.4-million to reach 67-million in 2022, underpinned by 4.7-million more clean-energy jobs, increasing the total number of workers employed across clean-energy industries to 35-million.

Growth in employment was driven primarily by the five sectors of solar photovoltaic (PV), wind, electric vehicles and battery manufacturing, heat pumps and critical minerals mining.

Solar PV employment rose to four-million jobs, mainly associated with installing new capacity, with rooftop and small-scale installations accounting for about two-thirds of the jobs in the sector.

Electric vehicles and batteries, meanwhile, emerged as the fastest-growing employment creator, adding well over one-million jobs since 2019.

The report also shows that 800 000 workers are currently mining critical minerals for clean energy technologies and that the number of jobs in the sector could double by 2030 under a scenario where net-zero targets are met.

"Mining jobs for these critical minerals are concentrated in a handful of countries where larger mines operate, notably Indonesia and major producers in Africa and South America," states the report, which is the second to be published by the IEA and the first to include figures on critical-minerals mining jobs.

By contrast, fossil fuel-related employment remains 1.3-million below pre-pandemic levels at 32-million, with as many as 13-million fossil-fuel jobs at risk in the period to 2030 under a scenario aligned with energy transitions aligned with the goal of limiting global warming to 1.5 C.

The report warns that the transition risk is particularly acute for coal miners in emerging and developing countries, with the coal supply workforce having already contracted by 225 000 jobs between 2019 and 2022, mostly as a result of mechanisation.

Under the same 1.5 C scenario, 30-million new clean energy jobs could be created by 2030, underlining the relative job-intensity of clean-energy sectors relative to fossil fuels.

"This means that around two clean energy jobs would be created for every fossil fuel-related job lost," the IEA states.

However, it also cautions that energy jobs may not always be in the same location nor require the same skills, and urges policymakers to focus on job training and capacity building to ensure that energy transitions benefit as many people as possible.

The report also warns that a growing number of energy industries are citing skilled labour shortages as a key barrier to ramping up activity.

A survey carried out by the IEA with 160 energy firms globally also found the number of workers pursuing degrees or certifications relevant to energy sector jobs was not keeping pace with growing demand.

This was particularly the case for vocational workers such as electricians specialised for energy-sector work, as well as professionals in science, technology and engineering.

This diverging jobs trend between clean energy and fossil fuel employment was repeated across all regions, including Africa, where the solar PV trend was also evident

"Off-grid solar home systems sales are playing an increasingly prominent role in regions without universal electricity access today, mainly in sub-Saharan Africa where around 8% of households with access to electricity rely on these systems.

"Rapid growth in this sector has boosted the number of solar PV jobs in Africa to an estimated 115 000 in 2022."

Mineral Resources and Energy Minister Gwede Mantashe has released a draft Bill for public comment outlining the establishment of the South African National Petroleum Company (SANPC), which the proposed legislation defines as the "State's energy champion and facilitator of energy infrastructure across the energy value chain".

The Bill states that the Minerals Resources and Energy Minister will be the sole shareholder of the SANPC.

The proposed legislation outlines a consolidation of the entities currently associated with the Central Energy Fund (CEF) - including PetroSA, iGas, and the Strategic Fuel Fund (SFF) - and states that the company will pursue the "free carry model" outlined in the Upstream Petroleum Resources Development Bill, approved by the National Assembly in late October.

While the proposed State-owned entity will focus primarily on oil and gas exploration and production, as well as midstream and downstream operations and infrastructure, the Bill outlines a broad mandate empowering the proposed entity to acquire, generate, manufacture, market or distribute "any form of energy", including renewable energy.

Such a mandate may imply a possible overlap with Eskom, South Africa's vertically integrated electricity utility, which is itself undergoing far-reaching restructuring to separate its generation, transmission and distribution entities.

Mantashe, who is a strong supporter of the continued exploration, development and use of fossil fuels in South Africa, has also indicated previously that a new State-owned company could seek to repurpose some of Eskom's retiring coal power stations to gas in a move that some commentators suggest reflects the Minister's aspiration to create an 'Eskom 2.0'.

The proposal also featured during an explosive interview by eNCA of then Eskom CEO André de Ruyter, who revealed that he had received a request from the CEF to transfer Camden, Hendrina and Grootvlei to the CEF. For its part, the CEF defended its approach to Eskom as a request to intensify gas-to-power collaboration between the two State-owned entities.

The official coal retirement plan has been thrown into question, however, amid intense power cuts and increasing political resistance to decommissioning, and there is a growing likelihood that the retirement schedule will be reviewed.

This life-extension plan could well receive impetus from a report written by a Vgbe-led consortium and commissioned by the National Treasury. The report has not yet been published but is expected to make technical inputs on the feasibility of extending operations at the aged plants of Arnot, Camden and Hendrina.

There has already been strong pushback against the recent retirement of Komati, even though the over 60-year-old station had only one of its nine units operating and producing at increasingly expensive rates when it was shut in late 2022.

The Presidential Climate Commission recently provided President Cyril Ramaphosa with recommendations on how future decommissioning should be implemented, following extensive engagement with stakeholders relating to the Komati experience. A formal report from the commission is expected to be published soon.

For its part, Eskom's latest Medium-Term System Adequacy Outlook confirms that the shutdown plan used in previous such reports is under review.

Meanwhile, the Bill states iGas, PetroSA and SFF employees will be transferred to the SANPC once the legislation takes effect.

The draft Bill was published in the Government Gazette on November 13, with a 30-day comment period.

Mercedes-Benz South Africa (MBSA) will roll out 127 electric vehicle (EV) charging stations across the country in a R40-million investment.

As demand for EVs continues to grow, "ensuring robust infrastructure" for these vehicles is essential, says the local arm of the German car maker.

MBSA is collaborating with Chargify, a Level 2 empowered company.

The roll-out will include AC and fast-charging DC charging stations along the country's main routes and between metropolitan areas, as well as at airports, shopping malls, restaurant hubs, private hospitals, strategic expansion sites, residential estates and small towns throughout South Africa.

"The partnership with Chargify not only gives us the opportunity to grow…the local EV charging network, but also reaffirms MBSA's ambition to expand its enterprise and supplier development (ESD) portfolio," says MBSA human resources and corporate affairs executive director Abey Kgotle.

"Our ESD programme is aimed at making a real and lasting impact towards the transformation of the country through the creation of sustainable and meaningful jobs."

This investment is also aimed at providing current customers with a reliable charging network, and instilling confidence in those considering the switch to EV ownership.

MBSA's initial investment in the EQ charging network amounts to R15-million, with an additional R25-million earmarked for the second phase of the rollout.

Phase 1 involves the installation of 67 Mercedes-Benz EQ branded charging stations across South Africa by the first quarter of next year.

Phase 2 will add 60 additional charging stations, bringing the total to 127 EQ-branded charging stations.

Locations already featuring the charging infrastructure include BT Ngebs Mall and Mayfair Hotel in Mthatha; Woodhill Estate and Country Club; Da Vinci Hotel in Sandton; Champagne Castle in the Drakensberg; Highwaymans in Pilgrims Rest; the Courtyard Sandton, and the Silvermist Wine Estate.

Other locations currently in the installation phase include the Plettenberg Hotel; Wilderness Hotel; Swartberg Hotel, in Prince Albert; and Karoo Junction Mall in Beaufort West.

While EQ customers can charge at any charge point in the country, they will benefit from a 10% discount when charging via the Chargify network.

"Mercedes-Benz South Africa is accelerating the pace of eMobility transformation within the automotive industry," says MBSA co-CEO and Mercedes-Benz Cars executive director Mark Raine.

"Next to offering the most extensive and diverse all-EV portfolio in the market, we want to provide not only our customers, but all EV drivers the luxury and peace of mind of a comprehensive charging network."

The expansion of the Brazil, Russia, India, China and South Africa (Brics) bloc, announced during the fifteenth yearly Brics Summit in August, has raised questions about South Africa's role in the group and whether the perceived spurning of its more traditional allies and trade partners will have adverse effects going forward.

The new members, which have been invited to join from 2024, are Argentina, Egypt, Ethiopia, Iran, the United Arab Emirates and Saudi Arabia. The general consensus is that the Brics expansion is meant to enhance the group's global influence and aid a transition to a "multipolar world", in part by reducing the dominance of the US dollar.

South African Institute of International Affairs (SAIIA) African Governance and Diplomacy Programme head Steven Gruzd notes that bolstering numbers is a tried-and-true method of expanding clout, noting that both the European Union and the North Atlantic Treaty Organisation sought to increase membership to elevate their reach and scale of influence.

"The more countries behind you, the louder your voice becomes. So, expansion, in this instance, translates to more political clout. But make no mistake; the Group of Seven States are likely to remain dominant for now, although China is exerting its diplomatic heft to a much greater degree."

Further, the expansion of the Brics market reinforces the group's economic power, "even if it remains a loose club rather than a firm, exclusive alliance". Gruzd adds that the inclusion of several major oil producers and some of the members' geographical importance on major sea lanes, including the Suez Canal, the Straits of Hormuz and the Bab-el-Mandeb Straits, will "add to the club's overall power".

Gruzd tells Engineering News & Mining Weekly that, while the new entrants want to be part of something "successful, with momentum" and which seems to have an ideological affinity with strengthening a multipolar world, "some tensions will be imported into Brics".

These include issues pertaining to the Grand Ethiopian Renaissance Dam and the resulting "standoff' on the Nile between Ethiopia and Egypt, as well as the Middle Eastern rivalry between Iran and Saudi Arabia. There is also the continued tension relating to Russia's invasion of Ukraine, the escalation of the long simmering Israel-Hamas conflict, as well as friction between India and China on numerous issues.

Gruzd says that the Brics organisation clearly believes that issues between members can be contained or "ever ameliorated"; however, the members' individual relationships with the rest of the global community are trickier to manage, especially when many of the new members, and a significant chunk of the old ones, have been critical of the existing West-orientated world order.

"For example, as international geopolitics becomes an ever-more-complex web, closer relations with Iran through Brics could place strain on South Africa's fragile relations with the US vis-à-vis Ukraine, and now the Israel-Hamas war too. There is much speculation that African Growth and Opportunity Act membership could be in jeopardy, although the South African government has tried to dispel this, including by sending special envoys to Washington.

"International Relations and Cooperation Minister Naledi Pandor visiting Tehran will not be seen as constructive in the West, nor will her telephone calls to Hamas leadership."

He notes that, while the inclusion of Iran may "make things more complicated", South Africa maintaining relationships with 'controversial' countries is nothing new, as it has had strong ties with Iran for decades, including defending it in international fora regarding its nuclear programme and on sanctions.

Gruzd says that the long-term security and trade implications of the Brics expansion are challenging to identify at this stage.

"From a trade perspective, it's hard to tell whether there will be adverse impacts on future trade for South Africa. We needn't see this as a stark 'either or' cho...

Engineering News editor Terence Creamer discusses the ongoing delays in the procurement of new electricity generation by the State; the reasons for the delays; and if the procurement model is still fit for purpose.