Construction World September 2016

COMMENT

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).

In this month’s issue we have the first alternative energy feature in

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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.

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.

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.

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 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 always produce to maximum capacity. A renewable energy plan

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

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Wilhelm du Plessis Editor

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EDITOR & DEPUTY PUBLISHER Wilhelm du Plessis constr@crown.co.za ADVERTISING MANAGER Erna Oosthuizen ernao@crown.co.za LAYOUT & DESIGN Lesley Testa CIRCULATION Karen Smith

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The views expressed in this publication are not necessarily those of the editor or the publisher.

CONSTRUCTION WORLD SEPTEMBER 2016