May 2016

Coega donates Maths & Science equipment to Mt Arthur Girls High School at Bangindlala village in the Eastern Cape

The Coega Development Corporation (CDC) donated Maths and Science Equipment to Mt Arthur Girls High School at Bangindlala village near Lady Frere in the Eastern Cape.

The initiative forms part of the CDC’s outcome based approach on socio economic development. The organisation has over the years established and implemented a number of Corporate Social Investment (CSI) programmes across the country where it has a footprint.READ MORE

Wind power potential in South Africa on par with solar – recent CSIR study shows

The potential to produce electricity from wind turbines in South Africa is significantly greater and much more widely spread than initially thought, a recent study by the Council for Scientific and Industrial Research (CSIR) reveals.

The joint research study conducted by the CSIR in collaboration with the South African Energy Development Institute (SANEDI), Eskom and the Fraunhofer Institute for Wind Energy and Energy Systems (IWES) in Kassel, Germany, reveals that South Africa has an abundance of both wind and solar resources.READ MORE

Round Table 2

Supporting sound community trusts- establishment, governance and operations, hosted at the Industrial Development Corporation on the 23rd May 2016.

Renewables projects have to comply with socio-economic development (SED) and enterprise development (ED) and also local ownership obligations. The latter requires projects to establish a legal entity representing a beneficiary community. Most projects opt to establish a community trust for this purpose. The role of this trust in the wider community engagement and development work of projects ishowever flexible. Depending on project location, beneficiary community characteristics and funder conditions, the formation and governance of these trusts tend todiffer a lot. This roundtable discussion unpacked and further explored the prerequisites of successful community trusts through the work with selected case studies from within the renewables and mining sectors.

Supporting sound community trusts- establishment, governance and operations, hosted at the Industrial Development Corporation on the 23rd May 2016.

Renewables projects have to comply with socio-economic development (SED) and enterprise development (ED) and also local ownership obligations. The latter requires projects to establish a legal entity representing a beneficiary community. Most projects opt to establish a community trust for this purpose. The role of this trust in the wider community engagement and development work of projects ishowever flexible. Depending on project location, beneficiary community characteristics and funder conditions, the formation and governance of these trusts tend todiffer a lot. This roundtable discussion unpacked and further explored the prerequisites of successful community trusts through the work with selected case studies from within the renewables and mining sectors.

Report

Presentations

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Round Table 1

Managing Community Unrest Resulting From Political Lobbying For Municipal Elections 2016, hosted at Mainstream Renewable Power on the 26th April 2016

The purpose of this roundtable conversation was to identify risks resulting from increased tensions within the community due to upcoming municipal elections that may impact on the construction and operations activities of ipps, including the implementation of socioeconomic development (sed) and enterprise development (ed) initiatives. The discussion analyse incidents that are likely to occur and shared insights on general mitigation strategies that can be applied by individual projects.

Managing Community Unrest Resulting From Political Lobbying For Municipal Elections 2016, hosted at Mainstream Renewable Power on the 26th April 2016

The purpose of this roundtable conversation was to identify risks resulting from increased tensions within the community due to upcoming municipal elections that may impact on the construction and operations activities of ipps, including the implementation of socioeconomic development (sed) and enterprise development (ed) initiatives. The discussion analyse incidents that are likely to occur and shared insights on general mitigation strategies that can be applied by individual projects.

Presentations

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Has Eskom forgotten that wind energy saved Eskom R300 million during the first half of 2015?

Eskom CEO Brian Molefe recently criticised renewables as having ‘failed’ Eskom by not providing the necessary power to avoid load-shedding at the right time of day.
 
In his comments, Molefe seemed to forget the significant contribution that was made by wind and solar energy projects during peak load-shedding periods during 2015.

 
Eskom CEO Brian Molefe recently criticised renewables as having ‘failed’ Eskom by not providing the necessary power to avoid load-shedding at the right time of day.
 
In his comments, Molefe seemed to forget the significant contribution that was made by wind and solar energy projects during peak load-shedding periods during 2015.

“From January to June 2015, wind energy alone saved Eskom R300 million through avoided purchases of coal and diesel. Between them, wind and solar energy avoided entirely, delayed, or prevented a higher stage of load shedding for a full 15 days,” explains South African Wind Energy Association Chairperson, Heather Sonn.
 
These figures, from an independent report by the Council for Scientific and Industrial Research (CSIR), will have subsequently increased in terms of wind energy contributed to the grid and the tariffs will have decreased significantly, as many more renewable energy projects are now providing energy to the grid.
 
In her recent budget speech, Energy Minister Tina Joemat-Pettersson hailed the government’s renewable energy programme an unprecedented success story. She shared latest figures showing that the contribution to the electricity grid from renewable energy developments in full operation is growing constantly and has now reached 16% of total energy produced in the peak periods of morning and evening in any 24-hour period.
 
“Four years ago there were just 10 wind turbines in the country – now we have more than 500 turbines –  14 large wind farms in operation providing more than 1 gigawatt (GW) of electricity to Eskom’s grid. There are many more wind farms under construction with more than 3GW in total already procured. This is a major success story for the country,” continues Sonn:
 
“In terms of cost, tariffs for wind energy in the most recent Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) bidding round were close to 50% lower than those predicted for Eskom’s new coal power stations. Furthermore, wind farms can typically be constructed and generating electricity in less than 18 months, in comparison with Eskom’s new coal power stations which have been plagued with long delays and large overspending of budgets.”
 
South Africa has an excellent wind resource, and more than 80% of the country’s land mass provides high enough wind speeds, and therefore electricity, to deliver affordable cost competitive energy to the grid.
 
“The daily energy demand profile for South Africa includes a morning peak that occurs between 05:00 to 09:00 in the morning, and an evening peak which ranges from 17:00 to 21:00.  Research conducted by the CSIR shows wind speeds are usually highest during the morning and evening peak with a midday reduction in wind speed at which point the benefits of Solar PV come to the fore.  Statistically, the wind has a far greater contribution over the evening peak. As the attached graph from March 2016 shows, pick-up is normally around 15:00 and there is a rapid linear increase in wind speed until around 18:00 at which point it moderates until after 21:00 which makes it an ideal counter in terms of evening peak,” explains SAWEA technical working group chair Chris Billingham [please see attached graph showing wind generation during March 2016].
 
In summary, the South African REIPPPP has successfully managed to procure 6377 MW of renewable energy to-date, and has been hailed as a global success. Wind and solar power already provides much needed electricity to the country’s grid network and the projects have been constructed on time and on budget. Bid windows 1-4 have attracted R200 billion of private investment, with another R55 billion expected with the 1800 MW ‘expedited’ window 4, due to be announced in quarter 2. Shareholding for local communities has already reached an estimated net income of R29.2 billion over the 20 year-plus lifespan of the projects.
 
Projects from REIPPPP bid windows 1-4 have committed to delivering 8451 job years during the construction phase, but actual figures stand 70% higher at 14,334 new jobs. The majority of these jobs are in rural provinces.
 
Recent figures also showed that the R30.7 billion spent on BBBEE during construction of projects during the programme so far has already exceeded the R26.6 billion that had originally been anticipated.
 
“It is hard to imagine, in the context of the above, how this thriving wind industry could be considered anything other than an unqualified success,” concludes Sonn. “SAWEA is a wind-energy trade association and our members understand the challenges of needing to make commercial transactions viable while delivering a low-cost energy source and that this is in the greater interest of economic growth.  To date, we have been proud of these achievements and will continue to deliver to this joint mandate.”

Wind Daily Prevalence March 2016 Graph.pdf
 
 
-Ends-
 
Editor’s notes:
 

For further information, please contact: Jo Reeves, jo@sawea.co.za or admin@sawea.org.za or call +27 (0) 11 2140664.
 
Please see attached graph showing wind energy’s contribution to the grid during March 2016.
 
The full CSIR report referred to can be found on the CSIR website here
 

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Minister outlines tangible deliverables in NCOP Budget Vote – 4 May 2016

The Minister of Energy, Ms Tina Joemat-Pettersson, MP, tabled the Department of Energy’s (DoE) Budget Vote 2016/17 to the National Council of Provinces (NCOP) yesterday. The Minister asserted the mandate of the department as one with a strong bias towards provinces and local governments. From the Department’s Budget of R7.5 billion an exponential allocation of R6.8 billion is directed to provinces and municipalities

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National Assembly Budget Vote Speech 2016

The energy sector has enormous potential to contribute to the growth stimulus that our country desperately needs. Economic growth through re-industrialisation, skills development and the creation of employment opportunities for our communities can all be enabled by the energy sector.

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Renewables outperforming on green jobs and relief for depressed communities says Energy Minister

In both her recent National Council of Provinces (NCOP) Budget speech and yesterday’s Budget speech Energy Minister Tina Joemat-Pettersson hailed the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) as ‘one of the world’s most successful’, highlighting some new statistics that show the programme is over-delivering in many areas.

In both her recent National Council of Provinces (NCOP) Budget speech and yesterday’s Budget speech Energy Minister Tina Joemat-Pettersson hailed the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) as ‘one of the world’s most successful’, highlighting some new statistics that show the programme is over-delivering in many areas.

There was good news regarding employment. Projects up to bid window 3 (which have only just started construction) are already outperforming predicted levels of employment reaching 111% of the planned numbers. The fact that there are still 23 developments still under construction and creating employment means that figures are likely to continue to exceed expectations.

Developers had committed to delivering 8451 job years during the construction phase, but actual figures stand 70% higher at 14,334 new jobs. The majority of these jobs are in rural provinces.

Recent figures also showed thatthe R30.7 billion spent on BBBEE during construction so far has already exceeded the R26.6 Billion that had originally been anticipated.

The Minister confirmed that community investment from the REIPPPP has “already brought about much relief to economically depressed municipalities providing not only household connections to the grid but also employment and economic empowerment opportunities to those mainly in rural areas.”

Other highlights included the R200 billion of private investment in solar and wind developments and shareholding for local communities reaching an estimated net income of R29.2 billion over the 20 year-plus lifespan of the projects.

Some information about the upcoming expedited Bid window 4 due to be announced in Q2 of the financial year (1800 Megawatts) and the first small projects programme was shared, which together will increase the total private investment amount to more than R255 Billion: “This is in excess of 4 percent of the national gross fixed investment as reported by the South African Reserve Bank for the last 3 years. These investments stimulate local business through a commitment of R65 billion to be spent on South African goods and services.” She confirmed that almost all the wind projects due to be appointed are in excess of 100 MW sites.

The contribution to the electricity grid from renewable energy developments already in full operation is growing constantly and has now reached 16% of total energy produced in the peak periods of morning and evening in any 24-hour period. This share of available energy will continue to increase as more diverse renewable sources hit the grid, including biomass and concentrated solar power, which provides energy storage.

The minister concluded her overview on the benefits of renewable energy with the following words: “Our Renewable Energy Independent Power Producer Programme is contributing to ‘greening’ South Africa’s Industrialisation. The programme has been designed to contribute to the development of a local green industry and the creation of green jobs. We are aware of at least twelve new industrial facilities that have been established in the country in direct response to the renewable energy programme – evidence of the programme’s contribution towards growing the green economy and green jobs.”

“These good news stories are no surprise to the industry but help to boost public awareness of the many benefits renewables bring to our country,” comments South African Wind Energy Association (SAWEA) Chairperson Heather Sonn. “This corroborates our view that renewables can contribute significantly to our energy mix and has inspired the theme ‘Towards 100% Renewables’ at our annual conference in November this year. We are increasingly seeing the reality of our industry delivering financial, social and transformational returns to South Africa.”

-Ends-

Editor’s notes:

For further information, please contact: Jo Reeves, jo@sawea.co.zaor admin@sawea.org.za or call +27 (0) 11 2140664.

About SAWEA
SAWEA is a non-profit, industry organisation representing the wind industry in South Africa. Its members include both national and international entities active in the entire wind energy supply chain. Its aim is to promote the sustainable use of commercial wind energy in South Africa; to contribute knowledge and human resources to the streamlining of the policy and regulatory framework for wind in SA; to facilitate synergy between the growth of the industry and the achievement of the broader socio-economic aims of Government (including training, job creation and localisation); to disseminate information; to act as a focal point for discussion between members, government, the media and the public.

Windaba 2016
Windaba is the annual, official wind industry event hosted by the South African Wind Energy Association (SAWEA) in partnership with Global Wind Energy Council (GWEC). The annual conference and exhibition will take place on 2-3 November 2016, at the Cape Town International Convention Centre. For further information, please visit www.windaba.co.za