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CONSTRUCTION WORLD SEPTEMBER 2016
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COMMENT
EDITOR & DEPUTY PUBLISHER
Wilhelm du Plessis
ADVERTISING MANAGER
Erna Oosthuizen
LAYOUT & DESIGN
Lesley Testa
CIRCULATION
Karen Smith
TOTAL CIRCULATION:
(Second Quarter ’16)
4 766
PUBLISHER
Karen Grant
PUBLISHED MONTHLY BY
Crown Publications cc
P O Box 140
BEDFORDVIEW, 2008
Tel: 27 11-622-4770 • Fax: 27 11-615-6108
The views expressed in this publication are not necessarily those of the editor or the publisher.
PRINTED BY
Tandym Cape
@ConstWorldSA
Sustainable Construction World, our second sustainable supple-
ment, will be published in October. Although green building is
still very much in its infancy in South Africa, it is becoming vital.
Support this supplement with advertising or editorial.
The reality is that despite these increases, coal
generated electricity still accounts for almost
95% of the 44 000 MW generating capacity in
South Africa. At this stage renewable energy
(solar and wind power) accounts for only about
5% of SA’s generating capacity. According to
Eskom, a maximum of 1 600 MW of renewable
energy is part of its current generating capacity.
It is important to keep in mind that with solar
and wind energy, there is a difference between
installed capacity and maximum production: as
the wind does not always blow and the sun does
not always shine, such infrastructure does not
always produce to maximum capacity.
A renewable energy plan
The Department of Energy has committed to
increasing renewable energy to 13 225 MW by
2025 – this is in terms of the country’s Integrated
Resource Plan. In the shorter term, this plan
aims to expand the renewable procurement
programme to some 6 000 MW by 2020 – 92
independent producers have been selected
In this month’s issue we have the
first alternative energy feature in
Construction World. Just five years ago
green energy had an almost negligible
footprint in the country. Fast forward
to 2016 and almost 2 000 MW is being
generated by 42 projects across South
Africa. This is set to increase significantly
in the next few years.
Noupoort Wind Farm has achieved its Commercial Operations Date
making it the first wind farm to successfully achieve operation as part of
the third round of the Renewable Energy Independent Power Producer
Procurement Programme (REIPPPP).
for this (according to the Renewable Energy
Independent Power Producer (IPP) Procurement
Programme (REIPPPP)). A significant number of
these, 79, have now reached financial close and
are generating power (i.e. fed into the national
grid) or are being constructed.
The future of coal
At the end of 2015 South Africa was a signatory
of an agreement in Paris that will force countries
to switch to a low-carbon economy in an effort
to minimise climate change. The implication is
that, if South Africa adheres to the agreement,
the country will never see the likes of a Kusile
and Medupi being built ever again.
Ironically however, Eskom’s (our largely
coal-fed national electricity utility) woes are
hampering the roll-out of renewable energy
in South Africa. The REIPPP plan was stopped
from issuing budget-quotes to IPPs because of
Eskom’s financial problems. In addition, interna-
tional companies involved in the plan are paid
in rand by Eskom – the fluctuating exchange
rate has made it unattractive for more foreign
investment in the programme.
A significant investment
Despite inherent drawbacks (as opposed to
the predictability of electricity generated from
fossil fuels), establishing a renewable energy
infrastructure in the country, has had a positive
effect. Earlier this year, the renewable energy
programme had attracted R192,6-billion of
which R53,2-billion was foreign investment.
Wilhelm du Plessis
Editor