Minister says renewables 'key and lasting' amid South Africa policy row
South Africa’s newest wind farm started commercial operation against the background of an increasingly bitter policy row that today saw its energy minister wade in to underline the “irreversible” role of renewables in the country’s future economy, amid fears that its cornerstone initiative is under threat.
The 134MW Amakhala Emoyeni, the first wind project developed by Cennergi – a joint venture between local company Exxaro Resources and Indian giant Tata Power – entered service yesterday near Bedford in the Eastern Cape.
The Nordex-built Amakhala Emoyeni was awarded a contract as long ago as May 2012 in the second bidding round of the South African government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
But construction work only began on the project in June 2014, while work was carried out on the grid infrastructure needed to export the wind farm’s power.
The huge grid investments needed to accommodate new renewable capacity is one of a number of issues heating a simmering debate over REIPPPP, which has been widely praised for creating a significant utility-scale clean energy sector from a standing start in a country facing major economic challenges.
Over four bidding windows since 2011, South Africa has gone from hosting negligible wind and solar generation capacity to having procured 6.4GW of renewable energy, with 13.2GW pledged by 2025.
The row centres on reported comments to government by Ben Ngubane, the chairman of state-owned power utility Eskom, that it will halt the signing of any more power purchase agreements with renewable IPPs once the current “round 4.5” is completed until the impact on its own finances can be assessed
Eskom CEO Brian Molefe has stirred the pot by giving interviews highlighting the intermittency of wind and solar generation, and talking up the role of nuclear in a low-carbon power economy.
The country’s renewables industry has reacted furiously, with the South African Wind Energy Association (SAWEA) labelling Eskom’s stance a threat to the nation’s hard-won reputation as an attractive destination for foreign investment.
The South African Photovoltaic Industry Association (SAPVIA) added: “A potential damaging outcome of current discourse is the chilling effect it could have on private sector investment – not only in RE IPP sector, but also in other parts of the economy. Hardly an outcome this economy requires when the outlook for South Africa’s economy looks gloomy.”
South African energy minister Tina Joemat-Pettersson today insisted that renewables remained on the agenda.
“Renewable energy has a key and lasting role to play in SA’s future,” she wrote in the country’s Business Day newspaper. “Our renewable energy sector has been built up in the past four years and has contributed significantly to the growth of our economy. We expect this sector to continue to grow in the years ahead.”
Joemat-Pettersson added: "We have started down an irreversible path with the success of our IPP and renewable energy programme."
