- Bloomberg reports that the head of a South African government office that runs auction rounds for the provision of renewable energy to the state said it’s feasible to set up a similar agency to encourage private investment in transmission.
Last year the South African Wind Energy Association (SAWEA) and South African Photovoltaic Industry Association SAPVIA have collectively conducted a ‘Renewable Energy Grid Survey’. The survey is a first of its kind and provides clear market intelligence on the status of the renewable energy sector in South Africa.
The survey reveals that 66GW of renewable energy projects are under development which includes 21GW of wind and 7.5GW of wind and battery storage plus 13305MW solar PV and 19572MW of solar PV with battery storage. All projects recorded in the survey are ‘shovel ready’ (construction ready) or close to it. Read more
South Africa’s transmission infrastructure is designed mainly around base-load coal-fired power generation. To accommodate new generation capacity, the bulk of which will come from renewables, the country will need to quickly ramp up transmission infrastructure (transmission lines, transformer capacity and energy storage) to accommodate variable loads and ensure grid stability.
The Managing director of Eskoms’ new Transmission Company, Mr Segomoco Scheppers, said that the country needed to add more than 1500 km of new transmission lines annually over the next ten years. This is to ensure transmission capacity to accommodate more than 50 GW of new generation power which will mainly come from intermittent renewable energy (wind and solar projects).
Currently, Eskom’s transmission division is adding 300 km of new power lines annually. Scheppers confirmed that in the last ten years, only 4 347 km of new powerlines were added.
Another challenge is transformer capacity. Scheppers confirmed that more than 122 600 MVA transformation capacity would have to be added, representing 77% of Eskom’s current installed base of just over 160 000 MVA. In the last ten years, only 19 060 MVA has been added to the grid infrastructure.
South Africa’s Minister of Electricity, Dr Kgosientsho Ramokgopa, has confirmed that the National Energy Crisis Committee (Necom) is considering a public–private partnership model for transmission infrastructure to accommodate new generation capacity which includes intermittent renewable energy. The capex on this is pitched at R210-billion which Eskom and the government does not have. He added that there was no intention of relinquishing state ownership of the grid. Read more
“It’s not going to be a cut and paste into the transmission space,” said Tshifhiwa Bernard Magoro, head of the Independent Power Producers Office, adding that different companies with the requisite skills would need to be encouraged to bid. “The message is that it’s possible,” he said at a conference in Johannesburg on Thursday.
Magoro’s office has been slow to procure much needed new generation capacity from IPP’s which has deepened the country’s energy crisis. Read more
The government may need to set up a transmission office to encourage private investment, Mmakgoshi Lekhethe, head of asset and liability management at the National Treasury, said at the event. Lekhethe said the Treasury is in talks with the World Bank and African Development Bank over developing credit guarantees and insurance for clean energy projects.
Author: Bryan Groenendaal
