The South African Wind Power Affiliation (Sawea) is searching for worldwide specialists to assist salvage 23 wind energy initiatives that did not safe most well-liked bidder standing within the sixth bidding window of the federal government’s Renewable Power Unbiased Energy Producer Procurement (Reippp) scheme.
R100 million invested
Bidders, who invested a complete of round R100m within the initiatives, have been excluded as a consequence of a scarcity of connectivity to Eskom’s transmission grid within the Northern, Japanese and Western Cape provinces.
That is alarming as a result of they relied on Eskom’s technology grid capability evaluation, which was revealed in March 2022 and indicated that there’s enough capability.
The primary paragraph of the doc reads: “The Transmission Community Technology Connection Capability Evaluation 2024 (GCCA-2024) was revealed to tell stakeholders of the potential capability obtainable on Eskom’s transmission community to facilitate the connection of technology initiatives.”
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In an interview with Moneyweb editor Ryk van Niekerk about RSG Geldsake on Monday (January 23), Eskom chief working officer Jan Oberholzer admitted that communications had failed, connection factors weren’t reserved for bidders and entry information was not often up to date.
In the meantime, initiatives designed to generate electrical energy for personal clients took up all obtainable capability and outnumbered bidders within the public procurement course of.
This resulted in simply 5 photo voltaic initiatives – with a mixed capability of simply 860 MW – being declared as most well-liked bidders.
It follows President Cyril Ramaphosa rising an preliminary 2,400 MW tender to 4,200 MW final July as a part of his power contingency plan in an effort to extend technology capability on the grid to handle load shedding query.
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Peter Attard-Montalto, head of political economic system, markets and a simply power transition at Intellidex, wrote on his i-Weblog: “The failure of REIPPP bid window 6 on the finish of 2022 means With the plan now being 3GW lower than we initially deliberate it must be, the bid window 7 additionally seems very problematic. Ending load shedding in a significant manner by the tip of 2024, which regarded doable final 12 months, if laborious, is now unattainable.”
In line with Eskom, all obtainable connection capability within the three Cape provinces has been taken up, that means that the entire funding in these initiatives will likely be wasted. They’re positioned the place the wind assets are the very best and can’t be diverted elsewhere.
Sawea chief government Niveshen Govender stated the business was asking for the appointment of a advisor skilled in managing constrained grids to advise Eskom on the best way to combine the initiatives into the community.
He famous that the Scandinavian international locations, in addition to Australia and the US state of California, all face the identical challenges and that South Africa can be taught from them. “The toughest factor was getting Eskom to agree and share the knowledge.”
Govender added that the business was ready to bear the associated fee. If Eskom agrees, it may very well be accomplished inside six months, he stated.
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time is life
The timeframe is necessary as a result of the authorizations for 23 initiatives, together with environmental approvals, are solely legitimate for one 12 months. After that, they fail, and the money and time spent will likely be wasted.
Potential options embody grid sharing between photo voltaic and wind initiatives.
“Photo voltaic generates electrical energy in the course of the day and wind principally at night time. Internationally, one finds an overlap of solely 7 p.c,” Govender stated.
“Managing such a community is complicated, however not unattainable,” he added.
Additionally it is price wanting into the potential of connecting to distribution networks slightly than transmission networks, Govender stated. “Germany has overcome the restrictions of rooftop photo voltaic grids.”
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Sawea additionally needs to determine the sources of funding for the R72 billion funding within the transmission grid that Eskom is demanding over the subsequent 5 years.
On this regard, Attard-Montalto writes: “The failure of the sixth bidding window additional highlights that we’re not paying sufficient consideration to transmission, and that the R72 billion transmission funding required over the subsequent 5 years is way from being achievable. This in 2024 This creates a gap within the potential to get sufficient power on the grid between 2020 and 2027 – once more additional delaying the tip of load shedding.”
To forestall one other Bid Window 6 shock, Eskom’s grid entry queuing system have to be honest and clear, Govender stated.
“In the intervening time nobody is aware of the way it works.”
He stated initiatives aimed toward non-public procurement shouldn’t be allowed to overhaul public procurement initiatives.
This text initially appeared on Moneyweb and is republished with permission.
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