Newly appointed Energy Minister Jeff Radebe has ended the delay in the signing of new Independent Power Producer (IPP) agreements, with 27 projects having been given the go-ahead. The majority of these are wind projects.

27 new IPP agreements signed

According to Radebe, investments worth about R56-billion will flow into the energy sector as a result of the projects. Speaking in Parliament, he told MPs that the total infrastructure investment in the 64 current signed IPP projects amounted to R142-billion. This, however, excluded investments of more than R120-billion as a result of unsigned or unannounced projects.

The 64 signed projects are those with a contractual obligation to construct, said Ngobeni, adding that an additional R59.8bn infrastructure investment would be derived from the 27 projects in bid window 3.5 and 4 that have not been signed, as well as from the 20 small projects in the bid window 1 and 2, which are also still to be signed.

The 48 projects that have been procured and announced but not signed will generate 2 421MW, the minister said, with the infrastructure investment from the 19 procured but unannounced projects totalling 1 775MW in the expedited bid window. These are expected to be worth R63.4-billion. Additional investment of R40.4bn would be derived from the two projects under the coal bid window 1, which was also still to be signed, he told Parliament’s Portfolio Committee on energy.

The latest agreements have been hailed by various industry bodies. The SA Oil and Gas Alliance (Saoga) issued a statement welcoming the unlocking of stalled IPP investments, calling the move by Minister Radebe “encouraging”.

Radebe also announced steps towards the implementation of a gas IPP programme. He said he had asked the Department of Energy and the IPP Office to facilitate the initiatives towards the development of a gas market, “while exploring both indigenous and imported resources, as well as the related investment in infrastructure, particularly in collaboration with our neighbouring countries in eastern and southern Africa".

Saoga CEO Niall Kramer said this was “a clear signal of coming action”, adding that from the conclusion of the contracts, the gas projects could start producing power in between four to eight years. That would allow for terminal building, pipeline construction and power plant development.

Image credit: https://www.flickr.com/photos/governmentza/27320300994


African Fusion

AfricanFusionAfrican Fusion, the official publication of the Southern African Institute of Welding (SAIW), aims to provide up-to-date insight into welding technology and the welding industry.

Capital Equipment News

Capital Equipment News is dedicated to the application of equipment and modes of transport that are used in the mining, construction, quarrying, and transport industries.

Construction World

ConstructionWorldConstruction World was first published in 1982 and has grown to become a leader in its field, offering a unique mix of editorial coverage to satisfy the diverse needs of its readers.

Electricity + Control

ElectricityandControlE + C publishes innovative, technical articles that provide solutions to engineering challenges in measurement, automation, control, and energy management.

Lighting in Design

LightingandDesignLighting in Design is a glossy, upmarket publication aimed at lighting professionals. It is the only B2B magazine in SA that is dedicated solely to the subject of lighting.

MechChem Africa

MechChemJanuary2017cover MechChem Africa supports African engineering and technical managers across the full spectrum of chemical and mechanical disciplines.

Modern Mining

ModernMiningEstablished in 2005, Modern Mining is one of SA's leading monthly mining magazines, noted for the quality and accuracy of its writing and the breadth of its coverage.

Modern Quarrying

ModernQuarryingModern Quarrying is firmly entrenched as a leading industry-specific magazine. It focuses on promoting the science and practice of quarrying and processing in southern Africa.

Sparks Electrical News

SparksElectricalNewsReadable and informative, Sparks Electrical News is the newspaper for those involved in installing and maintaining electrical supplies and equipment.

Full Name*
Invalid Input

Company Name*
Invalid Input

Your Email*
Invalid Input

Invalid Input

Postal Address 1*
Invalid Input

Postal Address 2*
Invalid Input

Postal Code*
Invalid Input

Street Address 1
Invalid Input

Street Address 2
Invalid Input

Postal Code
Invalid Input

Town / City*
Invalid Input

Invalid Input


Invalid Input

Invalid Input