South Africans have nothing to fear from the decommissioning of the country’s traditional coal power plants, Eskom Group CEO, Andre de Ruyter has said.
Speaking at the #EnlitAfrica2022 conference in Cape Town on fast-forwarding the country’s transition to clean, greener energy, De Ruyter said South Africa was at a critical juncture in its history as many of its power plants had come to the end of their intended life.
Although subsequent additions had to be made to the country’s energy infrastructure, he felt it would be remiss to “put a padlock on” those people who have invested in the coal value chain over the years.
According to a World Bank study he cited, close to 300 000 new jobs would be unlocked in the Mpumalanga coal belt region where most coal mines are located.
The number of jobs provided would be more than the number of jobs lost.
De Ruyter said the private sector was “waiting in bated breath to invest” but an enabling regulatory dispensation would first have to be established if the energy transmission process was to remain just.
The Just Energy Transition Partnership, which includes South Africa, Germany, France, the United States, the United Kingdom, and the European Union has pledged many billions of dollars to overseeing a fair transition process.
In terms of the restructuring of Eskom, currently, the single buyer, seller and provider, the energy giant would have to be unbundled into three separate arms that would deal with the generation, transmission, and distribution of energy separately. Suppliers would then operate in a traditional market of “willing buyer, willing seller”.
He said Eskom, the government and the National Energy Regulator of South Africa (NERSA) were working on an aggressive timeline which would open the floodgates for the inclusion of the private sector in energy transmission, possibly even by the end of the year.
South Africa has the key to unlocking the climate challenge. This is the view of Mojabeng Manthata, Acting Head, Energy, Environment and ICT, Development Bank of South Africa (DBSA).
Speaking at the #EnlitAfrica2022 conference in Cape Town on Africa’s transition to green energy, Manthata said, “We have both the challenges and the opportunities and can serve as an example to the rest of the world.”
Rather than viewing the country’s energy crisis as an insurmountable hurdle, Manthata urged stakeholders in the energy supply industry to view it as an opportunity.
Manthata said many of South Africa’s power plants had approached the end of their lives and were needing to be decommissioned.
“We now have the opportunity to replace assets for the future,” she said.
South Africa had committed itself to being carbon-free and had abundant resources such as wind and water, making the time ripe to attract international investors.
By converting existing coal mines and plants to greener options, the existing communities, including women, could be transformed and upskilled.
“Decentralised energy is the cheapest form of energy and can be implemented quickly. However, we need to act fast,” she said.
Source: Esi-Africa
Ghana’s state’s largest power generation, Volta River Authority (VRA), is planning to expand its generation capacity within the next five years.
The expansion, expected to cost the Authority some US$410 million, is intended to increase power supply and reliability in the West African nation.
According to VRA, it would undertake a comprehensive Rehabilitation, Modernisation and Life Extension Project (RMLEP) of the Takoradi Thermal Power Plant (T1) at the Aboadze enclave which has been in operation for 25 years (since 1997).
The company noted in a document that a consultant was engaged to undertake a technical assessment study of the T1 power plant and advise on improvements, not only about the physical conditions of the plant’s equipment but also about the efficient and reliable operational performance of the power plant.
“The recommendation was to undertake retrofitting of some equipment to extend the economic life of the plant by a further 10 years,” the company said in the 2022-2027 Multi-Year Tariff Review proposal submitted to PURC for consideration.
“This Life Extension project would cost USD 60 million and is expected to commence in 2022 till the end of 2023,” VRA explained.
Additionally, the VRA also intends to convert the existing 220MW simple cycle KTPS power plant into a 315MW combined cycle power plant.
This project would improve the efficiency of the power plant, increase generation output and reduce the cost of power generation from the power plant.
According to VRA, the project is currently at a developmental stage and is expected to be completed by 2025.
The estimated cost of the project is US$ 250 million.
The state power producer also wants to obtain a ‘No Objection’ from the Government
through the Ministry of Energy to rehabilitate the 132MW T3 Power plant which is currently out of service into a 132MW combined cycle power plant.
The estimated cost of the project is US$100 million and the rehabilitation work is expected to commence by the end of 2022.
Source: https://energynewsafrica.com
Ghana’s power transmission company, GRIDCo, has outlined several projects to upgrade its transmission line to improve power transmission and reliability.
Among three critical projects GRIDCo intends to execute to improve the power transmission network are 161kV Aboadze-Cape Coast-Winneba-Mallam Transmission Line, 161kV Mallam-Pokuase Transmission Line and 161kV middle corridor transmission line (Akosombo-Tafo-Nkawkaw- Konongo-Kumasi).
These projects are expected to cost the state power transmitter some US$274 million
Besides these projects, GRIDCo would also undertake three major projects namely the Ghana-Germany Compact, an improvement of the southwestern infrastructure and the construction of a Backup Control Centre.
The Chief Executive Officer of GRIDCo, Ing Ebenezer Kofi Essienyi, disclosed this at a press briefing in Accra on Monday, June 6, 2022.
Ing. Ebenezer Kofi Essienyi, CEO Of GRIDCo
According to him, this forms part of efforts by the government to ensure a robust grid system to meet the increasing energy demands of businesses and households in selected parts of the country.
“Two main energy sector projects are programmed for commencement this year as part of a broader plan to transform the sector. The projects are the Ghana-Germany Compact and the Western Corridor Transmission Lines Upgrade,” he said.
However, outlining GRIDCo’s plan for the energy sector, Ing. Essienyi said the two programmed upgrades would help improve Ghana’s electricity grid capacity and also ensure that the country produces energy for local consumption and export.
He said the projects, when completed, would contribute to reducing the frequency and duration of power outages in parts of the country.
Source: https://energynewsafrica.com
Ghana’s power transmission company, GRIDCo, has employed three female engineers who were part of the workforce that executed the US$50 million Kasoa Bulk Supply Points in the Central Region.
“I am happy to announce that three of the female engineers have been recruited to join GRIDCo effective June 1, 2022.
“We caught them young at this very substation,” Board Chair of GRIDCo, Ambassador Kabral Blay-Amihere said in a speech delivered at the commissioning of the Kasoa Bulk Supply Point.
According to him, the young females were made to go through “our due recruitment process.”
The move, according to GRIDCo, was to promote gender equality and Science Technology Engineering and Mathematics (STEM) education at the tertiary level.
Ambassador Kabral Blay-Amihere used the occasion to highlight some of the challenges confronting the power sector.
“GRIDCo and sister companies namely ECG, VRA and Bui Power Authority operate in a strategic sector with varied and complex challenges ranging from burdensome legacy debts to liquidity problems. And in the case of GRIDCo, legacy transmission lines dating to the 60s must be urgently reconstructed to meet the growing demand for reliable electricity supply throughout the length and breadth of the country,” he explained.
He said despite the many challenges, GRIDCo continues to work 24/7, travelling the valleys, mountains, bushes and forests where their towers and transmission lines traverse to wheel power to ECG, NEDCO and other customers in the chain.
“We fully recognise the importance of reliable electricity towards the nation’s industrialisation programme, particularly the 1D1F policy and are working strenuously to reinforce and reconstruct our transmission systems.
“GRIDCo, in the last five years, has repositioned itself towards playing its part in the development of Ghana,” Ambassador Kabral Blay-Amihere concluded.
Source: https://energynewsafrica.com
Diesel prices have gone up astronomically to almost Ghc13 per litre in the Republic of Ghana, West Africa.
As of Monday, Star Oil and Allied Oil were selling a litre of diesel at Gh¢12.58 (US$1.57)and Gh¢12.50 (US$1.56) per litre respectively.
The leading OMCs-Goil and Total are selling a litre of diesel at Gh¢12.20 and Ghs12.40 respectively while Shell is selling at Ghs12.20 per litre.
Although the price of gasoil(diesel) has been oscillating on the global market, the depreciation of the Ghanaian cedi against the major currencies has been pushing the price of diesel higher.
On May 17, 2022, the price of diesel on the global market was hovering around US$1,066.25 per metric tons, according to data by eng.kurzy.cz. However, it nose-dived to US$1038.13 per metric tons, the following day and moved upward consistently to US$1,263.50 per metric tons on May 31, 2022.
As of Thursday, June 2, 2022, diesel price was pegged at US$1,299.50
Both Star and Allied have adjusted petrol prices upward to Gh¢10.19 pesewas per litre.
It would be recalled that the Institute for Energy Policy (IES) had predicted between a five and nine per cent rise in the price of petrol in the first pricing window in June.
“On the back of the cedi’s depreciation and the 11.05 per cent jump in the price of gasoline on the international fuel market, gasoline in Ghana is set to sell above Gh¢10.00 per litre, which translates into Gh¢45 per gallon,” it said in a statement.
The energy think tank, however, noted that prices of gasoil (diesel) and LPG would somehow witness some form of stability.
“The 5.49 and 4.13 percentage drops in the prices of fossil and LPG respectively on the international market may not necessarily lead to a reduction at the local retail outlets as most marketers will look to maintain their prices to offset the losses from the depreciation of the cedi,” IES noted.
Source: https://energynewsafrica.com
Nigeria’s Ministry of Power has attributed power outages experienced in parts of the country to a partial shutdown of the Oben gas plant.
A statement issued by Malam Isa Sanusi, Special Aide to the Minister, explained that the shutdown of the Oben gas plant was to address the repair of critical gas equipment.
“The incidence, unfortunately, occurred at a time when other power plants on other gas sources are undergoing planned maintenance and capacity testing.
The Ministry said Seplat Energy Plc has mobilised equipment, material and personnel to the site to expedite the restoration of normal gas supply to the affected plants.
“We have been assured that the repair work would be concluded this weekend and normalcy will be restored,” the statement said.
The Ministry further assured Nigerians that efforts are being made for a sustained improvement of power supply across the country.
Source: https://energynewsafrica.com
British independent power producer (IPP) Savannah Energy has received approval from the Chadian authorities to build three renewable energy plants with a combined capacity of 500 MW.
The plants will supply power to three towns, as well as to oil facilities.
Chad’s installed electricity capacity is expected to increase over the next three years.
The UK-based independent power producer (IPP) has signed a related agreement with the Chadian Ministry of Petroleum and Energy.
The agreement covers the development of 500 MW of new installed capacity.
The largest will have a capacity of 300 MWp.
This solar photovoltaic plant will be located in Komé, a town in the Logone Oriental region.
The park will be equipped with an electricity storage system to reduce the impact of intermittency related to the production of solar photovoltaic energy.
The electricity produced will be used to power the Doba oil site, which currently relies on fuel oil.
The Komé solar power plant, which is expected to go into commercial operation in 2025, will be connected to Chad’s national electricity grid, providing clean electricity to the cities of Doba and Moundou.
“The expected tariff for electricity generated by this project is expected to be significantly lower than that paid for current hydrocarbon-based electricity generation in the region. At 300 MW, the Komé solar plant would be the largest solar project in sub-Saharan Africa (excluding South Africa) and would be the largest battery storage project in Africa,” Savannah Energy said..
The city of N’Djamena will be the main beneficiary of the Savannah Energy project.
The British IPP has also signed an agreement with the Chadian authorities for the construction of a solar photovoltaic plant with storage facilities, as well as a wind farm.
Each facility will have a capacity of 100 MW. The financing for the construction of these plants is expected to be completed between 2023 and 2024, with commissioning of the facilities between 2025 and 2026.
According to Savannah Energy, its investments will double the power generation capacity of the capital N’Djamena, and increase Chad’s total grid-connected power generation capacity by about 63%.
The central African country has an installed capacity of 314 MW according to Power Africa.
Source: https://energynewsafrica.com
The Millennium Challenge Corporation, United States Agency, has commended the Millennium Development Authority (MiDA) for the successful execution and completion of all the projects under the Ghana Power Compact II programme.
The successful completion of the MCC-Ghana Power Compact II programme brings in total over US$860Million investments in Ghanaian economy by United States Government through MCC’s compact programmes since 2012.
“In MCC’s global portfolio, the partnership with Ghana stands out as one of the few countries that has now completed two compacts amounting to nearly $860 million in grant dollars toward projects to boost inclusive economic growth.
“With the first $547 million compact in 2012, MCC and the Government of Ghana raised farmers’ incomes through private sector-led agribusiness development and major public works projects in Accra, notably the emblematic George W. Bush stretch of the N1 Highway. Today, these projects are benefiting 100,000s of Ghanaians (est. 1.2 million).The success of this first Compact has led us here today, to celebrate the unprecedented milestones of the second $316 million MCC-Ghana Power Compact,” Mahmoud Bah, Deputy CEO of Millennium Challenge Corporation (MCC) told section of Ghanaian journalists at a breakfast meeting in Accra, the capital of Ghana.
Explaining the impact the compact has made in the Ghana’s power sector, Mr. Mahmoud Bah said: “With the construction of two BSPs (the two largest of the country), two primary substations and other IT investments, the MCC-Ghana Power Compact has increased the transmission network capacity by 1,015 MVA representing roughly 10% of Ghana’s total transmission capacity and has successfully enhanced the country’s power sector.”
Ghana signed the Power Compact II in 2014 during the John Mahama administration.
The Power Compact II programme led to the implementation of comprehensive projects including construction of Pokuase and Kasoa Bulk Supply Points, University of Ghana Medical Centre (UGMC) Primary Substation and Ellen Moran Primary Substation in Kanda, IT Management systems at ECG, energy efficiency programs, capacity building and gender integration in the power sector.
Other projects executed under the Compact were the Air Conditioner and Refrigerator Test Laboratory at the Ghana Standards Authority (GSA), the first of its kind in West Africa to promote renewable energy sources and curtail the country’s use of low-quality, less energy-efficient equipment, installation of more than 14,000 new, energy efficient LED streetlights and new metered energy management systems, replacement of old, inefficient lighting and setting a new standard for energy savings, rewiring of some selected markets, internship program for more than 300 female students in the fields of science, technology, engineering and math (STEM) at leading energy sector institutions; and over 600 female STEM students participating in mentoring and training for professional growth and development.
The compact also helped the Electricity Company of Ghana (ECG) adopt a gender policy, action plan and new targets for greater female employee recruitment and promotion.
The compact officially ends on June 6, 2022
Source: https://energynewsafrica.com
Ghana’s largest independent power producer, Sunon Asogli Power Ghana, has donated assorted items to the Kpone Methodist School, where it operates.
The donation was to commemorate Children’s Day in China, where, Shenzhen Energy Group, the parent company of Sunon Asogli Power Ghana, is located.
Children’s Day is observed annually on the 1st of June to demonstrate to children that they are loved and cared for.
In a statement copied to energynewsafrica.com, it said: “In preparation for this day, Sunon Asogli Power employees set up a donation box where they could give from the bottom of their hearts.”
The statement said donations from the donation box were used to purchase school supplies while the company provided two table tennis boards, table tennis bats and balls, a projector, footballs, candies and a variety of snacks.
The General Manager of Sunon Asogli Power, Mr Jin Zhengyi, commented: “The donation was a small gesture to show the children that they are loved and will remain in everyone’s hearts.”
Continuing, he said: “We must all make a small effort to put a smile on each child’s face. We hope that our efforts here today will brighten the day of the children.”
The Headmistress of the Methodist School, Madam Juliana Sarpong-Asante, who received the donation on behalf of the school, expressed gratitude to the company for its generosity.
She was excited to teach the students table tennis, which can be an avenue for the students to gain scholarships.
Sunon Asogli Power employees promised to do more to show their love for the community.
Source: https://energynewsafrica.com
Nigeria’s Minister for Power, Engr Abubakar D. Aliyu, on Thursday, inaugurated the 14 member- governing board of the Transmission Company of Nigeria (TCN) with a call on them to work as a team while superintending over the affairs of the TCN.
The new Board is chaired by Mr Bukar Bulama Buni.
The rest are Engr Sule Abdulazeez, Managing Director, TCN; Appolonia Okigbo, representative of South-East; Ahmad Talba Imamuddeen, representative of North-East; Clement Omeizabaiye, representative of North-Central, and Muhammad A. Wazaram, representative of North-East.
Nigeria’s Minister for Power, Engr Abubakar D. Aliyu, on Thursday, inaugurated the 14 member- governing board of the Transmission Company of Nigeria (TCN) with a call on them to work as a team while superintending over the affairs of the TCN.
The new Board is chaired by Mr Bukar Bulama Buni.
The rest are Engr Sule Abdulazeez, Managing Director, TCN; Appolonia Okigbo, representative of South-East; Ahmad Talba Imamuddeen, representative of North-East; Clement Omeizabaiye, representative of North-Central, and Muhammad A. Wazaram, representative of North-East.
Other members of the Board are Abdul Karim Babatunde Disu, representative of South-West; Osagie Edible, representative of South-South; Gazalli M. Tukur, representative of North-West; Nsima Udo Ekere, representative of South-South; Ali Haruna, representative of North-West; The Director Transmission Services, Federal Ministry of Power Hajia Aisha Omar, representative Federal Ministry of Finance and the Director-General, Bureau of Public Enterprise.
Source: https://energynewsafrica.com
Nigeria’s Minister for Power, Engr Abubakar D. Aliyu, on Thursday, inaugurated the 14 member- governing board of the Transmission Company of Nigeria (TCN) with a call on them to work as a team while superintending over the affairs of the TCN.
The new Board is chaired by Mr Bukar Bulama Buni.
The rest are Engr Sule Abdulazeez, Managing Director, TCN; Appolonia Okigbo, representative of South-East; Ahmad Talba Imamuddeen, representative of North-East; Clement Omeizabaiye, representative of North-Central, and Muhammad A. Wazaram, representative of North-East.
Other members of the Board are Abdul Karim Babatunde Disu, representative of South-West; Osagie Edible, representative of South-South; Gazalli M. Tukur, representative of North-West; Nsima Udo Ekere, representative of South-South; Ali Haruna, representative of North-West; The Director Transmission Services, Federal Ministry of Power Hajia Aisha Omar, representative Federal Ministry of Finance and the Director-General, Bureau of Public Enterprise.
Source: https://energynewsafrica.com
Other members of the Board are Abdul Karim Babatunde Disu, representative of South-West; Osagie Edible, representative of South-South; Gazalli M. Tukur, representative of North-West; Nsima Udo Ekere, representative of South-South; Ali Haruna, representative of North-West; The Director Transmission Services, Federal Ministry of Power Hajia Aisha Omar, representative Federal Ministry of Finance and the Director-General, Bureau of Public Enterprise.
Source: https://energynewsafrica.com
Ghana’s largest independent power producer, Sunon Asogli Power Ghana, and its partner, China Energy Engineering Corporation Ltd, have been prequalified to carry out the construction works of the 350MW Limbé gas power plant and associated power lines in Cameroon.
The consortium was selected following the Restricted International Invitation to Tender launched by the West African nation’s Ministry of Water and Energy.
The results were made public on May 27. There were five which put in the bid for the project.
The call for tenders was launched on May 7, 2020, and the companies had August 10, 2020, as the deadline to submit their bids to the Ministry of Water and Energy (Minee).
After nearly two years of examination, only the offer proposed by Sunon Asogli and its partner was able to meet the expectations of the special commission for partnership contracts set up by the Ministry.
The evaluation was made based on the technical and financial qualifications of each offer.
According to a local report, out of 100 points, Sunon Asogli and CECL were able to pull off 81.7 per cent.
“The Minister invites the Managing Director of the group of companies Sunon Asogli Power (Ghana) Limited/China Energy Engineering Corporation Limited to get in touch with his Cabinet for the start of the pre-qualification dialogue. A consultation to angle on the technical means, as well as the legal and financial arrangement for the realisation of the studies, the construction and the exploitation. ”
However, in the event of non-agreement between the two parties, the invitation to tender may be cancelled and a new recruitment process would be initiated. In addition, said press release invites those companies that have not been selected to collect “within two weeks, their offers from the office of the Minister for Water and Energy, upon publication of this press release. After this period, offers not withdrawn will be destroyed.
The companies which were eliminated for “non-compliant’’ are the Folder Energy partners limited / China Machinery Engineering Corporation Limited group based in Douala in Cameroon, ACWA Power based in the United Arab Emirates, AKSA ENERJI Uretim AS based in Turkey and Power Construction Corporation of China Limited based in China.
Commenting on the development, Director of Sunon Asogli Power Ghana Limited, Togbe Afede XIV, who expressed gladness, said: “This is an exciting milestone in the pursuance of our Pan-African development agenda, and our desire to be part of the solution to electric power supply problems on the continent.”
Source: https://energynewsafrica.com
A research conducted by experts in the power sector has revealed why there has been a consistent lapses in electricity generation and distribution chain in Nigeria, despite various intervention programmes.
In the research detailing the challenges still plaguing Nigeria’s electricity distribution companies (DisCos), low system efficiencies or high Aggregate, Technical and Commercial, ATC&C, losses, ageing infrastructure, poor customer relationship management, and a history of less than cost-reflective tariffs were listed as major impediments to the sector.
The research conducted by Nextier, also highlights Nigeria’s electricity supply industry challenges to financing, noting that the capital structure of acquisition debt and expansion financing poses more challenge for infrastructure assets operated in a regulated utility.
Also itemized as hindrance, is the challenge of raising the required long-term patient capital aligned to the long-lived infrastructure assets.
“As a result, it has been a challenge for the companies to service debts, meet the necessary rehabilitation and expansion commitments, improve efficiencies, and simultaneously pay their upstream invoices to other market participants and administrative entities.
“In the context of the Nigerian market, the Multi-Year Tariff Order (MYTO), a methodology for regulating prices and rewarding the performance of industry operators, forms the basis of electricity tariffs. The MYTO allows for bi-annual minor reviews to account for changes in the parameters that influence tariffs, such as available power generation, inflation, exchange rates and gas prices.
“These minor reviews provide a 6-month generation forecast. However, factors such as gas availability, water management and transmission infrastructure capabilities also constrain actual generation,”the Nextier paper report asserted.
It noted that due to these interdependencies within the sector, the DisCos lack complete control of all the factors that impact their operational excellence. Insisting that from a DisCo perspective, some of the upstream expenses are not incurred due to the unavailability of energy supply, system constraints still result in lost revenue and profits.
“A holistic approach to solving the issues in the sector is required if the NESI is to achieve its potential. Furthermore, solving the problems faced by the DisCos would help facilitate a more competitive electricity market, “the report stressed.
Source: independent.ng
Tullow Oil will acquire Capricorn Energy in an all-stock deal worth 656.9 million pounds ($826.7 million), keeping a focus on African reserves amid soaring energy prices.
Investors in Capricorn, formerly known as Cairn Energy, will receive 3.8068 Tullow shares for each share they hold, the companies said on Wednesday.
“The combination represents a unique opportunity to create a leading African energy company, listed in London, with the financial flexibility and human resource capability to access and accelerate near-term organic growth,” the companies said.
The Russia-Ukraine war has sent crude oil and gas prices higher as sanctions on Moscow squeeze supplies.
The combined group, to be led by Tullow boss Rahul Dhir and majority-owned by the West Africa-focused firm, is expected to have an output of 96,000 barrels of oil equivalent per day, with pro forma reserves of 343 million barrels of oil equivalent.
Tullow’s flagship offshore oilfields in Ghana will make up the biggest share of the new group’s reserves and production, three- quarters of which will be oil and one-quarter gas.
The larger company, which is expected to have a new name, will have production across Africa, including Egypt, Gabon, and Ivory Coast.
The merger will offer annual savings of $50 million and investors in the new group will get an annual dividend of $60 million, ending a payout drought for Tullow shareholders.
Shares in Tullow, which last closed at a price of 54.60 pence each, reversed initial losses to trade about 0.6% higher by 0759 GMT. Capricorn Energy shares were up 0.7%. The wider oil and gas index fell 0.6%.
Morgan Stanley and Rothschild & Co were Capricorn’s financial advisers, while PJT Partners and Barclays advised Tullow. The boards of both energy companies backed the deal.
Separately, energy services provider Wood Plc WG.L agreed to sell its consulting unit for $1.9 billion.