Engineering News Online Audio Articles

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. It's easy to overlook the sheer magnitude of Robertson and Caine's (R&C's) operations in Cape Town. The company's ten boat-building factories and assembly lines are dotted across the city - from Woodstock to Paarden Island to Montagu Gardens, with the latter also housing a substantial warehouse. Other numbers, however, make it easier to appreciate the scale of the catamaran builder, including the fact that the 33-year-old company employs more than 2 400 people, with one boat rolling off an assembly line somewhere in the city almost every weekday of the year. For this year, that will be more than 200 catamarans. R&C is South Africa's largest boat builder for the export market, the largest builder of ocean cruising catamarans in the southern hemisphere and one of the top three in the world, with the French its biggest competition. A catamaran can either be powered by sail and a small engine, or by more powerful engines alone. MD Theo Loock is perhaps proudest of its most recent accolade - the 2024 European Powerboat of the Year award for the Leopard 40 PC in the powerboat category. New Ownership R&C is Loock's fourth turn at the helm of a company, following 15 years as the boss of JSE-listed energy storage and automotive component manufacturer Metair. He retired at Metair in 2020, joining R&C in 2021, following a request to do so from asset manager CapitalWorks. R&C was founded in 1991 by John Robertson and the late Jerry Caine, reaching a new scale of operations when CapitalWorks joined the business as a strategic equity partner. Loock's brief as the new CEO included overseeing the sale of the business and facilitating Robertson's retirement last year. (John's son, Michael Robertson, remains at the company as design manager.) Today, R&C is owned by Vox Ventures, a subsidiary of PPF Group, an international diversified investment firm in Europe, with its roots in the Czech Republic. The new owners have a singular ambition for R&C - that it continues to expand globally while remaining based in Cape Town. Small Beginnings Before Robertson and Caine started the company, Robertson built monohulls - including one used by South Africa's champion sailor Hanno Teuteberg to win the Cape to Rio race in 1993. This gold medal attracted the attention of charter companies in the US, which asked Robertson if he didn't want to consider building catamarans. Multihulled catamarans offer more stability on the water than monohulls, which means they are better suited to tourist activities. "The charter market is all about comfort," notes Loock, quipping: "You don't want the children sliding off the deck." Robertson accepted an order for ten catamarans, ultimately leading to the birth of R&C. Today, R&C's product line-up includes sailing catamarans (42 ft, 45 ft and 50 ft) and power catamarans (40 ft, 46 ft and 53 ft). "We have a good balance, with around 60% in sailing and 40% in power," says Loock. More than 99% of R&C's boats find their way overseas; more specifically, the US East Coast, the Caribbean, Seychelles, Mediterranean, Asia, South Pacific and South America. Covid-19 provided a noticeable sales boost, as customers with healthier bank balances found that they could isolate from the pandemic on boats in some of the most beautiful parts of the world, says Loock. R&C's boats are handed over to the customer in the Cape Town harbour, where they undergo their final commissioning checks before either being sailed off by the owner or transported by freighter to their final destination. If you ever want to see R&C's boats make their trek to water, get up between 02:00 and 04:00 when they are transported to the Cape Town harbour on specialised trucks and under metro police escort. In essence, every boat sold by R&C is a Leopard-branded catamaran. However, they are only branded as such should ...

Engineering News editor Terence Creamer talks about the highs and lows of South Africa's real economy in the 30 years of democracy, as well as what could be done to reignite the manufacturing sector in particular.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. TransUnion Africa CEO Lee Naik says a tough economic environment characterised by cost-of-living challenges, high fuel costs and currency depreciations have resulted in a notable decline in vehicle sales and financing in South Africa. However, while this contraction is expected to persist, manufacturers and dealerships are stepping up their efforts to help consumers enter, or re-enter the auto market, he notes. TransUnion this week released its Vehicle Pricing Index (VPI) for the fourth quarter of 2023. Actions that vehicle manufacturers and dealerships are taking to egg on sales numbers include discount structures, incentives, trade assistance mechanisms, interest rate reductions on loans, and a focus on monthly payments rather than gross prices. "These efforts show innovation in an otherwise stagnant sector," says Naik. According to the newest VPI, a significant market trend is the increase in the average loan amount for financed vehicles. TransUnion data shows that, in the last quarter of 2023, the average loan value increased to R396 000, up from R386 000 in the same period in 2022. This 2.5% average loan value growth comes off the back of a consumer price index of 5.1% in December, and a new-vehicle price increase of 6.3% (fourth quarter, 2023 compared with the fourth quarter, 2022). TransUnion also reports that there has been an overall reduction in new accounts opened over the last two years, further confirming a decline in purchasing power and volume. "The net effect of these economic markers is that lower net income consumers are being priced out of the market - they either do not qualify for vehicle loans or are unwilling to add a new debt burden to their monthly budgets." This is where the industry is evolving to enable economic participation, says Naik. "Consumers are benefitting from the introduction of new subscription-based and vehicle-on-demand models and services. "Renting, station-based car sharing, free-floating car sharing, micro-mobility services, ridesharing and ride-hailing options are increasingly being brought to market to make transport more affordable for consumers, with the end-result promoting financial inclusion, furthering economic empowerment and stimulating economic growth." The shift in the ratio of used-to-new vehicles being financed - from 1.98 in the fourth quarter of 2022 to 1.2 in the fourth quarter last year - also signifies a change in consumer behaviour, driven by factors such as improved new-vehicle stock availability, an interest rate that is perceived as being stable, and innovation at dealership level, notes Naik. These factors are leading to consumers increasingly opting for new, rather than used vehicles. "Overall, the macroeconomic climate remains incredibly challenging for consumers and continues to affect buying power and spending habits," says Naik. "While the data sets in this index end in December 2024, the market indicators continue to tell a difficult story for the South African consumer - first quarter Naamsa sales figures remain depressed, and the cost of owning, running and maintaining a vehicle continue to increase, evidenced by another petrol price increase on May 1. "The South African vehicle industry's ability to adapt and innovate, particularly in embracing new mobility trends, will be essential for sustainable growth," states Naik.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Johannesburg's City Power is seeking manufacturing and venture capital partners to further develop and pilot a rugged 'energy box' concept in one of the city's 312 informal settlements as a possible greener and safer alternative to the illegal connections that currently predominate. Chief engineer for renewable energy Paul Vermeulen says the idea is to locate 3 kWh energy storage boxes - linked to lighting, charging and cooking appliances - within individual dwellings and link these to a centralised solar photovoltaic generator securely located on a nearby warehouse or factory rooftop. He notes that hundreds of secure rooftops capable of hosting 500 kVA-plus solar systems are already connected to the conventional grid in Johannesburg. The storage systems, which would probably comprise lithium-ion battery technology, would be charged using a constant supply of 130 W of nonlethal direct-current (DC) electricity through a light wiring network, containing low volumes of copper to make it less prone to theft. This informal grid, which would be relocatable should the area be formalised, would be supplied from conventional alternating-current (AC) grids in adjacent reticulated areas through an AC-to-DC converter and distribution control system that manages the charging of each energy box. The re-usable nature of the solution would also ensure compliance with the Municipal Finance Management Act, which disallows the city from installing fixed electricity reticulation in "non-permanent" areas. Lighting and mobile devices would be connected to the energy box using the USB-C standard and each box would be equipped with a single induction-based hotplate for boiling water and cooking. Vermeulen acknowledges that the induction stoves would require cookware containing ferrous materials, but says these are becoming more common and affordable. The appliance control system will use powerline carrier technology to communicate to the DC distribution and charging control system, drawing power from the conventional AC grid. Communications could also be used for tamper detection and energy balancing, as well as community fire and security alarms. Vermeulen believes the capital expenditure could be funded through the Integrated National Electrification Programme allocation and registered dwellings would also benefit from the free basic energy allocation, which many eligible households are currently not receiving. Household consumption above that 50-kWh monthly threshold would be charged at a nominal subsidised tariff. "The system can only dispense a fixed amount of energy to each household daily, thereby avoiding the problem of uncontrolled and excessive nontechnical losses common to conventional AC grid service connections," Vermeulen notes, indicating that up to 72 kWh can easily be lost daily to an illegally bypassed 3 kVA service connection. In addition, he highlights that the electrocution risks associated with illegal connections are high, with a number of deaths reported every year. "There is a need for a safe energy solution that can out-compete these illegal operators and, having surveyed residents within these areas, we have found a willingness to pilot the concept both for safety reasons and to reduce reliance on mafia-style illegal connectors." From a system perspective the constant controlled load would not increase the magnitude of the evening peak, avoiding the problem of uncontrolled electricity theft, while insulating the community from future Eskom price increases. Vermeulen says the rooftop solar system could be sized to offset the full cost of the energy provided, with the levelised cost of rooftop solar currently estimated at R1.30/kWh against the average cost of Eskom power of R1.75/kWh, which is expected to rise in future. "Eskom network and demand charges are also like...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Two solar photovoltaic (PV) projects selected as preferred bids under Bid Window 6 (BW6) of the Department of Mineral Resources and Energy's (DMRE's) renewable energy procurement programme reached commercial close on April 30. The projects, which were part of a group of six PV projects to advance to preferred-bidder status for a 1 000 MW allocation in 2022, have a combined capacity of 360 MW and a combined investment value of R4.9-billion. During BW6 none of the wind projects vying for a 3 200 MW allocation were selected owing to grid-related constraints. The DMRE said in a statement that the remaining four preferred bidders were finalising preparations for commercial close but were still hampered mostly by grid-access related challenges, as well as interdependencies between projects across bid windows. "The department and IPP Office are working tirelessly with Eskom to resolve these challenges, to ensure that all projects can reach commercial close and start construction," the DMRE said. The two projects to have achieved the milestone, meanwhile, are the Virginia Solar Park, located in the Lejweleputswa district of the Free State and representing the province's seventh publicly procured renewables project, and the Doornhoek PV project, which is the North West's sixth public renewables project and located in the Dr Kenneth Kaunda district municipality. To date, 95 independent power producer (IPP) projects, with a collective capacity of 7 336 MW, have advanced under the bigger programme. The Virginia Solar Park project is being implemented as a partnership between Red Rocket, Reatile, Jade-Sky Energy and the Red Rocket Opportunity Trust, while the Doornhoek PV project is majority owned by AMEA Power, which has partnered with Ziyanda Energy and black-women-owned Dzimuzwo Consulting. South African entity participation in each project is 49%. In a statement, Red Rocket said the Virginia Solar Park was located about 140-km north-east of Bloemfontein, and was the biggest solar farm procured under the Renewable Energy Independent Power Producer Programme, with a contracted capacity of 240 MW and peak capacity of 275 MW. CEO Matteo Brambilla welcomed the latest milestone by the company, which he said had consistently held its own against large multinationals to become a highly successful IPP in South Africa. A joint venture between PowerChina and Green Whistle would build the Virginia Solar Park under a turnkey engineering, procurement and construction contract. Construction on both solar projects is expected to take no more than 24 months with their generation capacity anticipated to come online by May 2026. "In support of [addressing] the current economic challenges that South Africa is facing, the two projects have committed a total of 2 034 job opportunities (measured in job years)," the DMRE said, adding that R389-million would be spent on skills, supplier, enterprise and socioeconomic development over the 20-year lifetimes of the two plants.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The City of Cape Town (CoCT) says it is moving closer to turning landfill waste into energy, with two projects that are designed to produce electricity from the combustion of landfill gas moving towards implementation. Landfill gas, primarily made up of methane, is produced when organic matter, such as food scraps, break down at landfill sites. To convert this gas into electricity, perforated pipes or 'wells' are dug into a landfill site to channel it as a fuel to produce electricity in specially-designed engines. CoCT Urban Waste Management MMC Grant Twigg tells Engineering News Online that the Coastal Park landfill site waste-to-energy project is awaiting the installation of a thermal mass-flow meter before the gas engines can be put into operation, while the process to permit the connection of the engines to the electricity grid is ongoing. Should everything run according to plan, the estimated date for first electricity production is sometime during the second half of this year. At the Vissershok landfill waste-to-energy project, Twigg says there have been some delays with the appointment of a gas-flare operator owing "to complexities and complications in the procurement process". This has impacted the timeline for the development of the detailed designs for the waste-to-energy component, "pushing this out significantly." "The first 2 MW generation infrastructure at Vissershok is scheduled for implementation in 2026/27, increasing thereafter to between 7 MW and 9 MW of generation capacity by 2028/29, depending on gas yields." Just shy of R79-million has been budgeted for Phase 1 of the Vissershok project, which includes two generator sets, various filters and controls, as well as setup, installation and connections costs. Further costs will be incurred for Phase 2, says Twigg, but it is too early at this point "to indicate these costs". He adds that the Vissershok landfill site is an Eskom-supplied site, with initial investigations showing that the local grid may be able to take up to 7 MW of electricity that could be fed into the grid. This would, however, require confirmation during the design stages of the project. The expected capital outlay for the Coastal Park energy project is R73.58-million. Twigg says the electrical generating capacity of this project will be about 2 MW. Some of this electricity will be used to power the new recycling facility that is under construction at this site. While the process to put the gas engines into operation is under way at this site, CoCT is using a flaring system at the end point of the well system to destroy landfill gas before it can enter the atmosphere. Landfull gas has a global warming capacity estimated to be 25 times higher than carbon dioxide. The flaring and electricity generation system at Coastal Park has been designed in such a manner that it can earn the city carbon credits. The proceeds from a planned auction of these carbon credits will be ring-fenced to fund projects of the city's Urban Waste Management Directorate aimed at reducing the impact of pollution. Twigg says it is unlikely that the Coastal Park project will be expanded, given that the site is set to close down "in the next few years". However, the project will go ahead as landfill gas continues to be generated for 10 to 15 years after the closure of a landfill, albeit at a slightly decreasing yield year-on-year. "This is evidenced by the fact that the Bellville South landfill, which closed in 2018, is still generating landfill gas eight years after the landfill was closed," says Twigg.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. South Africa's much-delayed draft Gas Master Plan (GMP2024) has been released for public comment by Mineral Resources and Energy Minister Gwede Mantashe, amid indications that the gap between demand and supply will grow steeply from 2026 onwards when Sasol ceases to supply Gauteng and KwaZulu-Natal industrial customers with gas imported from Mozambique. The document includes four scenarios, including a base case that shows that gas demand will far exceed supply in the short-term and that the gap, which has been described as an anticipated 'gas cliff', will worsen as demand grows. It has also been published against the backdrop of an anticipated growth in gas-to-power generation, with a public procurement programme under way and Eskom also pursuing its own large-scale greenfield and diesel-to-gas conversion initiatives. The draft GMP2024 recommends that South Africa should focus on the importation of liquefied natural gas (LNG) over the short- to medium-term to meet demand and pursue regional supply options to mitigate the supply shortfall anticipated between 2026 and 2030. "Government-to-government agreements could be relevant instruments to unlock such regional projects," the document states. However, it also recommends that indigenous natural gas production be pursued to diversify supply in a way the minimises geopolitical risk and improves prospects for competitive prices. "The country should, thus, strike a balance between domestic/indigenous gas, piped imports and LNG imports to ensure diversification of supply and reduce risks to security of supply," the draft document recommends. The GMP2024 focuses on reducing the total cost of supply, localisation and supporting energy security, but makes little reference to South Africa's climate commitments, stating only that gas could support a shift away from unabated coal-based electricity production. In a statement, the Department of Mineral Resources and Energy described the draft GMP2024 as a policy instrument that sought to ensure security of gas supply by diversifying supply options from both local and international markets. "It outlines the role of natural gas in the context of energy mix and provides policy direction to the industry in South Africa," the department stated. It added that the plan considered the complete gas topology ranging from demand, supply, importation, infrastructure, and distribution networks. "It recognises the critical role of natural gas in the country's economy, and anticipates the infrastructure required for the delivery of gas at a point of consumption based on a least-cost model." A deadline of June 15 was set for the submission of written comments

In this essay, Terence Creamer reflects on the factors that have shaped South Africa's real-economy sectors of manufacturing, mining and agriculture over the past 30 years and considers ways to end the economy's persistent underperformance. In a speech that disrupted the 'Rainbow Nation' narrative, which played an important unifying role at the highly uncertain start of South Africa's transition from apartheid to democracy, but which also failed to reflect the realities of entrenched race-based poverty and inequality, then Deputy President Thabo Mbeki defined South Africa as a country of "two nations". Opening a 1998 Parliamentary debate on 'National Unity and Reconciliation', Mbeki questioned whether South Africa was making progress in achieving the objective of nation building. Mbeki's vision was for a "common nationhood which would result from the abolition of disparities in the quality of life among South Africans based on the racial, gender and geographic inequalities we all inherited from the past". While acknowledging that the polite and reassuring response would be "yes", Mbeki insisted that the honest, albeit discomfiting, answer was "no", and then unforgettably declared that "South Africa is a country of two nations": one white and relatively prosperous; and a second and larger nation being black and poor, living under conditions of grossly underdeveloped economic, physical, educational, communication and other infrastructure. The abolition of the apartheid legacy, he concluded, would require sustained effort over a considerable period of time, dismissing as self-serving arguments suggesting that "four or five years are long enough to remove from our national life the inheritance of a country of two nations which is as old as the arrival of European colonists in our country, almost 350 years ago". Now, 30 years into South Africa's democracy, the socioeconomic realities and disparities sketched by Mbeki sadly largely persist, somewhat masked by the partial yet highly uneven achievements of policies such as affirmative action and black economic empowerment; policies that have not always been fairly applied, leading to deep mistrust and anger in some sectors of society, as well as a flight of skills from certain key institutions. In the economy overall, a gulf also remains between the formal and informal economies. The former being sophisticated yet too small and concentrated to make a proper dent in South Africa's extreme official unemployment rate of over 32%. It is also subjected to a raft of legislation and regulation that has increased since 1994, some of which has slowed investment and has had a negative impact on growth and development. The informal sector, meanwhile, operates largely outside of these constraints and continues to play an important role in supporting livelihoods. But it is smaller and less vibrant than is the case in several peer countries and is prone to turf wars that, at times, turn violent and xenophobic. In the formal sector it's also a tale of two realities. The financial and services sectors have grown substantially since 1994, while many sectors in the real economy have been on the decline, especially the manufacturing sector, whose relative contribution to gross domestic product has shrunk massively, from over 20% in the 1990s to about 12% currently. While the construction sector, which plays a key supportive role across a range of productive sectors, has been all but decimated. Only one large integrated construction company, WBHO, is still listed on the JSE, with the others having either exited the general construction market, or having closed or entered business rescue. Real Economy Pressure Measuring progress in the real economic sectors through the prism of Mbeki's aspirational vision for a society and economy that reduces disparities reveals serious underperformance over the past three decades. This, despite general societal and policy consensus over the period that their growth a...

Newly appointed Eskom group CEO Dan Marokane has provided assurances that loadshedding during the upcoming winter months will likely be contained at Stage 2, thanks to improvements in generation performance across the coal-fired power station fleet. As of April 26, Eskom has marked 30 consecutive days without loadshedding, which Marokane said on Friday was a "good moment" to reflect on. He attributed the achievement to the success of the generation recovery plan (GRP) implemented by the State-owned power utility since April 2023. Between April 2023 and March 2024, Eskom recorded a 9% year-on-year reduction in unplanned losses and a 19% decrease in unit trips. In addition to the no-loadshedding trend in April, Eskom's diesel spend averages 50% lower compared with the same time last year. The current load factor of 9% compares with a load factor of 18% in April last year. Marokane pointed out a considerable shift in the unreliability outlook, with a downward revision of 1 000 MW in the base case scenario. Eskom targets a further reduction of 1.7 GW in unplanned losses during winter, while intensifying efforts in demand management initiatives. Reflecting on Eskom's efforts since the previous winter, Marokane said the utility's investment in maintenance and disciplined execution of the GRP had resulted in a gradual reduction in unplanned losses. However, he said the current unplanned losses of 14.2 GW were still unsustainable. Eskom aims to reduce load losses to below 14 GW to ensure greater stability in power supply.

The City of Cape Town (CoCT) says its total proposed budget for water and sanitation for the upcoming 2024/25 financial year is R18.5-billion. Of this, R5.3-billion will be spent on capital projects, while R13.2-billion is allocated to operations. "Residents are assured that these remain key priorities for the city: building a water secure future, delivering clean, reliable drinking water and dignified sanitation services to residents in Cape Town, as well as reducing sewer overflows and improving treating wastewater so that we safeguard our environment and improve inland water quality," says Water and Sanitation MMC Zahid Badroodien. According to the budget, the city aims to spend R38.25-million on new taps and toilets for informal settlements. Within the new water programme (NWP), the city notes that surface water currently makes up about 98% of its drinking water. By 2040, however, the expectation is that groundwater, desalination and water reuse will account for 25% of supply. This will be in addition to the removal of alien invasive plant species in the city's catchment areas. "We are bringing online alternative water sources that will serve our growing population," says Badroodien."[We] will work towards implementing new water projects that include desalination, aquifer abstraction and our Faure new water programme." Badroodien notes that the city will invest R460.16-million this year in major infrastructure projects, the bulk being aquifer projects which form part of the NWP, including the Cape Flats Aquifer Recharge and related projects; the Atlantis Aquifer project, and the Table Mountain Group Aquifer and related projects. In terms of wastewater treatment works, the city expects to spend R2.58-billion on extensions and upgrades over the next financial year. This is planned to increase to R2.96-billion in the 2025/26 financial year. CoCT says the wastewater treatment works programme will expand the capacity of a number of key facilities. The Potsdam works will upgrade from 47 Ml/d to 100 Ml/d (this is currently in the construction stage). The Athlone works is in Phase 1 of a refurbishment and treatment process upgrade. The Bellville works is in the final phase of a refurbishment and treatment process upgrade. The Macassar works is in the design phase of an upgrade from 34 Ml/d to 80 Ml/d. Other wastewater works projects include Wesfleur, which is at the tender award stage for an aeration system replacement/refurbishment programme. At Wildevoëlvlei, the tender is currently being advertised for the refurbishment and upgrade of the mechanical sludge dewatering facility. Cape Town's 2024/25 water and sanitation budget also allocates R1.07-billion for various projects to prevent sewer overflows. This includes R154.37-million for the upgrade/refurbishment of sewer pump stations; R315.11-million for the replacement of 100 km of sewer pipes; and R597.51-million to tackle sewer spills by upgrading bulk sewers in Cape Flats, Philippi, Milnerton and Gordons Bay. The budget also allocates R83.36-million for the replacement of 50 km of water pipes to residential and business properties. The aim is to also spend R127.7-million on generators and uninterrupted power supply installations for sewer and water pump stations, as well as wastewater treatment plants.

Engineering News editor Terence Creamer discusses the work that has started on a market code for a competitive electricity industry in South Africa; what still needs to be done to transition to a multimarket framework; and where South Africa is in its reform journey.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. In this essay, Terence Creamer reflects on the factors that have shaped South Africa's real-economy sectors of manufacturing, mining and agriculture over the past 30 years and considers ways to end the economy's persistent underperformance. In a speech that disrupted the 'Rainbow Nation' narrative, which played an important unifying role at the highly uncertain start of South Africa's transition from apartheid to democracy, but which also failed to reflect the realities of entrenched race-based poverty and inequality, then Deputy President Thabo Mbeki defined South Africa as a country of "two nations". Opening a 1998 Parliamentary debate on 'National Unity and Reconciliation', Mbeki questioned whether South Africa was making progress in achieving the objective of nation building. Mbeki's vision was for a "common nationhood which would result from the abolition of disparities in the quality of life among South Africans based on the racial, gender and geographic inequalities we all inherited from the past". While acknowledging that the polite and reassuring response would be "yes", Mbeki insisted that the honest, albeit discomfiting, answer was "no", and then unforgettably declared that "South Africa is a country of two nations": one white and relatively prosperous; and a second and larger nation being black and poor, living under conditions of grossly underdeveloped economic, physical, educational, communication and other infrastructure. The abolition of the apartheid legacy, he concluded, would require sustained effort over a considerable period of time, dismissing as self-serving arguments suggesting that "four or five years are long enough to remove from our national life the inheritance of a country of two nations which is as old as the arrival of European colonists in our country, almost 350 years ago". Now, 30 years into South Africa's democracy, the socioeconomic realities and disparities sketched by Mbeki sadly largely persist, somewhat masked by the partial yet highly uneven achievements of policies such as affirmative action and black economic empowerment; policies that have not always been fairly applied, leading to deep mistrust and anger in some sectors of society, as well as a flight of skills from certain key institutions. In the economy overall, a gulf also remains between the formal and informal economies. The former being sophisticated yet too small and concentrated to make a proper dent in South Africa's extreme official unemployment rate of over 32%. It is also subjected to a raft of legislation and regulation that has increased since 1994, some of which has slowed investment and has had a negative impact on growth and development. The informal sector, meanwhile, operates largely outside of these constraints and continues to play an important role in supporting livelihoods. But it is smaller and less vibrant than is the case in several peer countries and is prone to turf wars that, at times, turn violent and xenophobic. In the formal sector it's also a tale of two realities. The financial and services sectors have grown substantially since 1994, while many sectors in the real economy have been on the decline, especially the manufacturing sector, whose relative contribution to gross domestic product has shrunk massively, from over 20% in the 1990s to about 12% currently. While the construction sector, which plays a key supportive role across a range of productive sectors, has been all but decimated. Only one large integrated construction company, WBHO, is still listed on the JSE, with the others having either exited the general construction market, or having closed or entered business rescue. Real Economy Pressure Measuring progress in the real economic sectors through the prism of Mbeki's aspirational vision for a society and economy that reduces dis...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Golden Arrow Bus Services (GABS) says it will probably make a final decision in the third or fourth quarter of this year on whether it will acquire any Lion's Explorer E electric buses from MAN Truck & Bus South Africa (MAN SA). MAN SA in September provided GABS with its first Lion's Explorer E electric bus for test purposes. GABS company engineer Gideon Neethling says the Cape Town-based bus service introduced the Explorer E to its passengers in early February, once it had completed non-passenger testing. Non-passenger testing included training bus drivers on using the electric bus; checking all the required safety features; determining the range of a single charge; and pinpointing charging rates. "The energy efficiency is within our expected range of between 0.9 kWh and 1.1 kWh per kilometre," says Neethling. He adds that both driver and passenger feedback "have been really positive". He says while the evaluation of the Explorer E "is ongoing", he can confirm that GABS has not experienced any operational issues or major concerns. MAN SA noted last year that the Explorer E was specifically developed for the African market, following a request by GABS for a MAN electric bus that would suit the South African environment. GABS is also testing three electric buses from a Chinese manufacturer. The bus service noted last year that its goal was to acquire more than 60 electric buses a year. About 31% of GABS' total costs relate to fuel. The 66-seater Explorer E carries one more passenger than an equivalent diesel-powered Lion's Explorer bus. MAN SA says the Explorer E's range is 300 km to 350 km, with a battery life up to 14 years, with 70% efficiency remaining at this point. The local arm of the German bus maker has an assembly plant in Durban, and a bus body plant in Gauteng.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Local solar-as-a-subscription service provider Wetility is deploying a rooftop solar solution in a lower-income community as part of a proof-of-concept study to firm up the feasibility of extending the offering to other underserved areas. COO Franta Pour tells Engineering News that the company's current focus is on the provision of bundled solar-battery rental solutions to more affluent households and small and medium-sized businesses, where attention is shifting progressively from security of supply to electricity bill savings. Despite being loadshedding-sensitive, he expects this higher-income market to continue to grow, but for customers to increasingly opt for solutions that extend well beyond panels and batteries to include ways of optimising production and accelerating their returns on investment, including through the integration of smart-geyser control systems. "We anticipate that the market has started to rapidly progress beyond loadshedding to emphasise savings, customer experience and maintenance and that it will eventually also be motivated by the goal of reducing environmental impact," Pour says. However, 70% of South Africa's potential household market is located in lower-income areas, where the penetration of solar remains extremely low and where market-ready affordable solutions have not been developed. Wetility is, thus, working on what it describes as a "fit-for-purpose subscription model" that it believes can help overcome both the key affordability hurdle, as well as the practical difficulties associated with installing solar on properties where ownership is unclear or where illegal connections are common. "We are currently rolling out systems with a partner who has a strong footprint in lower-income communities. "We will start sharing the results of the proof-of-concept in the next couple of weeks," Pour tells Engineering News, without disclosing the location of the pilot or the identity of the company's partner. "We are using various strategies to bring power to these households, including community advocacy, specialised credit products to enhance adoption while minimising credit losses, and collectivised schemes such as powering critical community points like schools and clinics. "This allows multiple households to connect to a larger shared plant and distribute the costs." However, he acknowledges that mass deployments will require collaboration with government at various levels, as well as funders, hardware and software providers and, crucially, the communities themselves. "We believe the discussions should start with local businesses as they provide the backbone of support. "Once they are convinced and start using solar systems, we can take huge strides forward towards including the residents and, finally, engage local government." Wetility is convinced that the benefits of finding a solution will be significant, with cheaper access to reliable and renewable electricity not only ensuring greater lifestyle convenience, but also creating the potential for enterprise development and job creation. "There are many benefits - the most important one is that competition from private companies will benefit customers and municipalities. "There will be more innovation, and the diversification of the power sector will help municipalities deliver better services. "In my opinion, communities will also make a point to protect those assets," Pour concludes.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Three Just Energy Transition (JET) skills development zones focusing on renewables and grids, electric vehicles and green hydrogen value chains are proposed for implementation under the larger JET Investment Plan (JET-IP), for which pledges of $11.5-billion have been made by several developed countries. The zones will be anchored to specific educational institutions, most likely technical and vocational education and training (TVET) colleges selected for their proximity to the priority sectors, where education and training will be tailored towards a specific JET focus and where catalytic interventions will be undertaken and partnerships with business developed. Joanne Yawitch of the JET Project Management Unit, which is located in the Presidency, reports that the development of JET-aligned skills has been identified as one of the key portfolios required to implement the JET-IP, approved by Cabinet in 2022. The plan was then endorsed initially by France, Germany, the UK, the US and the European Union and later by several other countries, some of which have teamed up with the original International Partners Group, with others providing bilateral support. The South African government's JET-IP outlines the need for R1.5-trillion-worth of investment in the renewables, new energy vehicles and green hydrogen sectors between 2023 and 2027 to support the country meet its goal of reducing its carbon emissions to as close as possible to the lower band of the emissions range submitted to the United Nations Framework Convention on Climate Change, namely between 420- and 350-million tons by 2030. The goal is currently likely to be missed given plans to extend the life of certain coal stations beyond their initial retirement dates, owing to a electricity supply deficit. Speaking during a South African National Energy Association webinar, Yawitch said that skills had been identified as a key cross-cutting requirement for the JET-IP, the implementation of which was currently under way, following Cabinet's endorsement of the implementation plan late last year. Envisaged was a three-tier JET skills ecosystem, to be coordinated by a 'JET Desk' that would be set up either within the Department of Higher Education and Training or the Human Resource Development Council of South Africa. The second tier would comprise a 'National JET Skills Advisory Forum', which would include representatives from government, civil society, the private sector, labour, higher-education institutions and TVET colleges to provide guidance regarding skills requirements and challenges. The skills development zones would make up the third tier with each zone focusing on one of the three priorities of renewables and grids, electric vehicles and green hydrogen. Without providing specific timeframes, Yawitch said the immediate priority was the establishment of the JET Skills Desk and the JET Skills Advisory Forum. In parallel, JET skills needs assessments would be undertaken for the three value chains. Speaking on the same platform, Strategic Mindsets director Wendy Poulton confirmed that a South African Energy Skills Roadmap had already been considered in collaboration with the University of the Witwatersrand, which made several recommendations while also highlighting the need for flexibility amid several uncertainties. It was recommended that an occupation and skills atlas be developed and skills planning be undertaken to ensure alignment between the needs of employers in the energy sector and education and training courses implemented at higher-education institutions. Also being prioritised were specific interventions, including skills development programmes, in the Mpumalanga province, where workers and communities were especially vulnerable to the shift from coal to renewables. Yawitch said a specific Mpumalanga po...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Electricity Minister Kgosientsho Ramokgopa describes surplus electricity arising from existing renewable energy facilities as "low hanging fruit" in improving the supply-demand balance and reports that discussions are under way to assess ways to make this energy available to the grid. Speaking during a regular update on the Energy Action Plan, Ramokgopa confirmed that the issue, which had been under consideration for years, had again been raised with him by the leadership of Scatec during his recent visit to the group's Kenhardt solar-battery facility in the Northern Cape. The hybrid Kenhardt plant comprises 540 MW of solar photovoltaic capacity and 225 MW/1.1 GWh of battery storage to provide 150 MW of dispatchable electricity daily. However, it is restricted, owing to the design of the much-criticised risk-mitigation procurement programme, from delivering any surplus solar electricity into the grid. It is understood that this results in up to 30% of the plant's solar generation being lost to the system. This despite the threat of daily loadshedding, which has eased somewhat in recent weeks, with Eskom having refrained from implementing rotational cuts for 26 days at the time of the briefing. Ramokgopa said finding a way to absorb the surplus being generated by Kenhardt and other renewables independent power producers (IPPs) required a "three-way conversation" between Eskom, the IPPs and government's IPP Office regarding a fair contractual model. It would also be feasible, he added, only if there was sufficient grid capacity to absorb the electricity. That said, discussions regarding the surplus available from existing IPPs have been under way for years, and even predate the 2022 establishment of the National Energy Crisis Committee, which initially indicated there to be some 70 MW of such surplus capacity available, which was before Kenhardt entered commercial operations. It is not clear why the negotiations have not progressed, with Ramokgopa indicating that several IPPs had approached him directly about the surplus that they "essentially throw away" because it exceeded their contractual limits. "We have initiated discussions with Eskom and the IPP Office to see how best we can design an intervention that makes it possible for us to benefit from that excess generation, without undermining what was a public procurement process to contract the megawatts," the Minister said. The outcome, he added, should not lead to questions about the credibility of the procurement processes or the resulting contracts, as the business case of the IPPs would be improved should the surplus electricity above the initial contracted amount be purchased. "It's a conversation we are having and the sooner we resolve it the better, [because] this is one of the matters I refer to as a low-hanging fruit." DIESEL USE FALLING Meanwhile, Ramokgopa expressed confidence that the loadshedding corner had been turned, which he attributed to more stable production from the coal fleet and the relief on the system being provided by both large-scale renewables and surging rooftop solar installations. Last year about 2 500 MW of rooftop solar was added, much of which was coupled to battery storage, increasing the overall installed base to above 5 000 MW. The installations had decreased daytime demand, which provided space for the replenishment of pumped storage reserves. The combination of improved coal stability, renewables, batteries and lower demand meant that Eskom was expecting to operate the open cycle gas turbines (OCGTs) it owned, as well as those operated by IPPs, at a far reduced capacity factor than was the case in its 2023/24 financial year. The utility confirmed that it exceeded its R30-billion diesel budget for the period by R3-billion. Ramokgopa said that, since December, Eskom had been using ...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. With the National Transmission Company South Africa (NTCSA) currently scheduled to be operationalised in July and efforts under way to ensure that the Electricity Regulation Act (ERA) Amendment Bill is passed by the current Parliament, work is now advancing on the market code for the future multimarket architecture that will progressively replace the vertically integrated structure that has prevailed for over a century. Eskom transmission MD Segomoco Scheppers will lead the NTCSA once it begins trade after addressing the remaining Companies Act requirements, having already met the key conditions of board independence, licensing and lender consent. He reported that, barring any surprises, the wholly owned Eskom subsidiary would transition towards being the transmission system operator (TSO) envisaged in the amended ERA, which by South African standards had advanced relatively speedily through the Parliamentary process. The ERA is currently being consider by the National Council of Provinces, having been endorsed by the National Assembly, and, if approved, will then be sent to President Cyril Ramaphosa, who has previously expressed an eagerness for the legislation to be promulgated as a matter of urgency. Scheppers admitted during a workshop on the draft market code that would govern the transition to a competitive industry, that he was continuously monitoring his emails for any sign of a legal challenge, following the recent issuance of creditor notices, which stipulated that any objection be lodged within 15 days of issuance and take the form of a legal challenge. However, he expressed cautious optimism that, absent any objections, the July timeframe could be met. This, after Eskom failed to meet the April 1 target date, which would have coincided with the start of the 2024/25 financial year. NEXT CHAPTER That said, he also stressed that the start of trade represented but one major milestone in a larger transformation effort, with the "next chapter" to begin once the ERA came into force and the NTCSA began integrating the TSO roles envisaged in the Act, which provides five years for such an evolution. Initially, the role of the NTCSA would be a "plug and play" version of the one performed hitherto by the transmission division. The amended ERA, however, also stipulates the following: The establishment of an independent TSO to manage the national grid, as well as system and market operations; The creation of a competitive electricity market, enabling multiple generators to compete on a level playing field; Ensure that regulation and tariffs are transparent, effective and clearly defined in scope; and Provide certainty to all market participants of their respective roles and responsibility. Speaking from the same platform as Scheppers, the Presidency's Saul Musker also highlighted that the ERA stipulated that a clear process be followed for the development by NTCSA of a market code, outlining qualifying criteria for power market participants, and for that code to be approved by the National Energy Regulator of South Africa (Nersa). The first draft of such a market code was published on April 19, following initial consultations pursued through the structure of the National Energy Crisis Committee (Necom), which was set up by Ramaphosa in July 2022 in response to the country's intensifying loadshedding crisis. Besides setting short- and medium-term goals to reduce the severity of, and eventually end, loadshedding, Necom was also instructed by Ramaphosa to "fundamentally transform the electricity sector to achieve long-term energy security". Musker said that besides the unbundling of Eskom in line with international trends and establishing the NTCSA, the key next steps related to developing a Nersa-approved market code, setting up a market operator within the NTCSA and imple...

Engineering News editor Terence Creamer discusses South Africa's plans to stimulate local manufacturing around solar, wind and batteries.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The combination of public and private procurement of large-scale renewables in South Africa signals increased stability for manufacturers of key components, a new GreenCape report argues. Published ahead of the release of the much-anticipated South African Renewable Energy Masterplan (SAREM), which will outline the country's official approach to localising renewables value chains, GreenCape's 'Large-scale Renewable Energy' report estimates that 6 GW of solar photovoltaic (PV) and 4 GW of wind power could be added through private procurement alone by 2030. This would be in addition to public procurement, which was expected to add 2.6 GW of solar PV, 3.2 GW of wind and 3.7 GWh of battery energy storage systems over the same period. Published as one of three sector-focused national studies released as part of its 2024 Market Intelligence Report, the non-profit organisation said the emergence of private procurement should help mitigate the boom-bust cycles associated with the market's previous heavy reliance on public procurement. The emergence of the private market has been facilitated by market reforms allowing distributed projects of any size to proceed without a licence, while the pace of procurement has been further accelerated by a sustained period of intense loadshedding, which has only recently abated. Speaking at a public launch in Johannesburg, Ulrich Terblance, who helped author the large-scale renewables report, said that the public and private markets to 2030 would be relatively similar in size at about R200-billion apiece, which could be sufficient to stimulate domestic manufacturing investment. He said the combined markets should also result in yearly deployments of about 2 GW, which should be sufficient to support the manufacture of certain components, even though such an installation rate was insufficient to address the overall supply deficit. The report estimates the total market size for domestic renewables components at R42-billion over the period to 2030. "Additionally, there is potential to manufacture components for both utility-scale and small-scale renewable energy projects, such as balance of plant or system components. "Smaller-scale projects can provide a steady demand, reducing manufacturers' vulnerability to fluctuations in utility-scale project demand and resulting in cost savings through economies of scale," the report states. GreenCape's separate 'Energy Services' report highlights the recent surge in rooftop solar and battery installations by businesses and households and estimate the overall market size for the period to 2030 at R88.4-billion. Energy programme manager Jack Redmore forecast that the small-scale market would continue to add between 1 GW and 2 GW despite the recent easing of loadshedding, but expressed caution about household affordability, with credit approvals by banks having slipped in recent months. Nevertheless, he argued that the large- and small-scale markets combined were providing demand stability that had been absent previously and which represented an opportunity for domestic manufacturers. Redmore noted that the South African government was working towards supporting the localisation of renewable-energy manufacturing through various industrial policy interventions, including SAREM, which was in its final draft. Engineering News confirmed with a Department of Mineral Resource and Energy official that the SAREM drafting process had been finalised, but the official was unable to confirm when the document would receive ministerial sign-off and be released for public consumption. GreenCape's third market intelligence report, which focuses on electric vehicles, highlights the potential not only for electric busses, trucks and taxis but also motorcycles used for last-mile deliveries. Report author Prian Reddy said the b...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The National Energy Regulator of South Africa (Nersa) has initiated consultations on Eskom's latest Regulatory Clearing Account (RCA) application for the 2022/23 financial year, where Eskom is requesting R9-million, its lowest RCA application since the utility began making yearly submissions under the claw-back mechanism. Given that the amount is less than 2% of Eskom's allowable revenue for the year, Nersa is not required to undertake public hearings. Nevertheless, a consultation document has been published, with virtual hearings scheduled for August 2 and 4 and a decision expected by December 2. Eskom indicates that the cost and revenue variances during the period were relatively modest largely because foregone revenue related to loadshedding during the period has not been included in the RCA. GM for regulation Hasha Tlhotlhalemaje reports that the effect of loadshedding on Eskom during the period was about R20-billion, but that this amount has been excluded from the application as has been the case historically. She also tells Engineering News that the relatively small variance does not reflect a growing convergence between Eskom and Nersa regarding RCA calculations, disputes over which have been the subject of legal action. Eskom has reviewed all RCA decisions from 2014/15 to 2020/21 in court and court processes are still under way involving about R60-billion in what the utility alleges to be incorrect RCA decisions. Tlhotlhalemaje says this view has been endorsed by a court judgment and order for the financial years 2014/15 to 2016/17 RCA decisions, which Eskom subsequently re-reviewed after Nersa failed to comply with the order. Therefore, she does not view the current small variation as reflecting a growing convergence between Nersa and Eskom on the way the RCA mechanism is being implemented. "Instead, the key variances make the difference; one of these being revenue related to loadshedding that has not been included in the RCA. "Thus, an amount of approximately R20-bilion is not recovered, which has always been the tradition, but the amount is very extreme for this financial year," Tlhotlhalemaje explains. Eskom and Nersa also not yet aligned on the methodological approach that should be taken for the next round of tariff applications. Nersa has approve Electricity Pricing Determination Rules (EPDR), which it wants to be implemented for the 2025/26 financial year. Eskom, however, says the EPDR cannot be implemented as its fails to include a method for calculating tariffs and that the prevailing multiyear price determination, or MYPD, framework and methodology will, thus, have to be used. "Eskom is complying with the court order that requires the use of whatever methodology is in existence in September 2023 for the revenue determination for 2025/26. "The process is under way for a decision by Nersa in December 2024," Tlhotlhalemaje tells Engineering News.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The National Energy Regulator of South Africa (Nersa) has belatedly moved to quell concern that its recent approval of a new loadshedding code of practice, which increases the number of potential stages from eight to 16, represents a signal that the prospect for higher levels of loadshedding is imminent. Following extensive public consultations undertaken by the National Rationalised Specifications (NRS) Association of South Africa, the third edition of the NRS048-9 standard was approved by the regulator for use by Eskom and municipal system operators during times of electricity constraint. It increases the number of loadshedding stages from the eight outlined in the second edition to 16 with the aim of preventing the system from succumbing to a blackout; a scenario from which it could take South Africa weeks to recover. At Stage 16, which Nersa fulltime regulator for electricity Nhlanhla Gumede described as a "highly unlikely scenario", 80% of demand would go unmet, and South African households and businesses would experience 32 hours of power cuts over a 32-hour period. At Stage 8, a level not yet implemented by Eskom, 40% of the load would be shed, equating to 16 hours over 32 hours. The utility has already implemented loadshedding at Stage 6 on several occasions, which under the third edition of NRS048-9, involves 30% of the load not being met, or 12 hours of loadshedding over 32 hours. In a media briefing hosted partly to explain the code and partly to allay fears, Gumede stressed that the approval of the new code was "not an indication that greater levels of loadshedding are imminent". NRS Association management committee chairperson Vally Padayachee said the updated standard had been developed using a scenario-planning methodology across the entire country load so as to address critical uncertainties, "including the unlikely event of Stage 16". "In so doing, we significantly mitigated the propensity of human error," he added. Prior to the approval of the update to NRS048-9, Eskom and municipal system operators had no firm guidance regarding the implementation of loadshedding beyond Stage 8, which was left open to their discretion. Padayachee argued that the lack of clear guidelines beyond Stage 8 posed a risk, particularly given that system operators would be making difficult decisions in an emergency situation where stress levels would be heightened, which could in turn increase the propensity for error. The new code of practice, he added, would help prepare operators to protect the national electricity grid, as it outlined a structured and proactive approach to addressing a crisis should one arise.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Volkswagen Group Africa (VWA) will invest R4-billion in its manufacturing plant in Kariega, in the Eastern Cape. The investment will be used to prepare the plant for the addition of a third model to the company's production line-up from early 2027. The third model, which will be a compact sports-utility vehicle (SUV), will be manufactured on the same production line as the Polo and Polo Vivo. VWA currently produces the Polo for the local and export markets, and the Vivo for the local market. Most of the R4-billion investment will be allocated to capital expenditure for the production facilities, manufacturing tooling, local content tooling, and quality assurance. Nearly R877-million will be spent to enhance automation in the body shop. In the press shop, R418-million will be used to procure new press tooling. The first phase of the plant upgrade will begin at the end of this year, during the facility's yearly shutdown. VWA chairperson and MD Martina Biene said on Tuesday that the investment reaffirmed Volkswagen's commitment to South Africa, where the German car maker has been manufacturing vehicles for nearly 73 years. "Plant Kariega is an important manufacturing plant within the Volkswagen Group production network," she said at the investment announcement in Kariega. "Since 2011, Volkswagen has invested R10.28-billion in production facilities, manufacturing equipment, local content tooling and training of people. "The new investment is a vote of confidence in the future of the plant. "It also futureproofs jobs, not only for our people, but also those employed in our supplier network." Export demand for the Polo from the VWA plant may trend downward towards 2030 as large swathes of the world shift to electric vehicles (EVs). VWA expects to export 127 000 Polos to 38 global markets this year. The company is set to become the sole global Polo manufacturer in July. The group produced 140 400 vehicles in total in 2023. VWA says localisation remains a key priority for the group. The Polo and Vivo currently have 46% and 58% local content levels, respectively. The trend is set to continue with the new model, which aims to achieve about 40% local content through a R1.2-billion investment programme. SOUTH AMERICAN FLAVOUR Volkswagen Brazil is leading the design and development of the new SUV, which will largely be aimed at world markets where EVs will be introduced at a slower pace. VWA's engineering team has, however, collaborated with Volkswagen Brazil to adapt the new model for local and African requirements, such as developing a right-hand-drive version. "South Africa is an important market for the Volkswagen Group, particularly in terms of our long-term goal to establish our footprint on the African continent, which is seen as the last frontier for automotive development," noted Biene. "As such, we have recently renamed our local company to Volkswagen Group Africa, to represent our responsibilities and ambitions to grow the Volkswagen brand on the continent. "The new model has the potential to be sold in other African markets where Volkswagen has a presence. "As most global vehicle markets transition to EVs, African markets like South Africa will continue manufacturing and selling vehicles with internal combustion engines (ICEs) for the foreseeable future, owing to customer demand for ICEs and the slow introduction of EVs in these markets," added Biene. This said, though, the Volkswagen Brand this year starts its electrification journey with the introduction of a ID.4 test fleet in South Africa and Rwanda.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. South Africa has fallen to sixty-ninth from sixty-fourth on the World Energy Council's (WEC's) latest World Energy Trilemma Index which ranks more than 100 countries against the three key dimensions of energy security, equity and environmental sustainability. The index is included in the 'World Energy Trilemma 2024' report, released on April 16, and which is topped by Denmark and Sweden, with Niger and the Democratic Republic of Congo at the bottom of the standings. South Africa, which has experienced extreme levels of loadshedding over the past three years, placed below Lebanon in the overall index and ranks eighth in the African regional index, behind Angola and Gabon, and which is led by Mauritius and Egypt. Titled 'Evolving with Resilience and Justice', the WEC says its latest report exposes profound changes in global energy systems, triggered by what it describes as the world's first demand-driven energy shock in response to Russia's invasion of Ukraine and accelerating energy transitions in all regions. Africa, the report states, is grappling with rising demand, security challenges and a transition towards cleaner energy. Amid strong population growth and increased urbanisation, energy demand across the continent is expected to rise by 30% between 2020 and 2030. "Meeting rising demand while ensuring affordability and sustainability is a critical aspect of Africa's energy security," the report states. It adds that Africa stands at a critical juncture between two divergent energy models: the conventional, extractive model of the past and an emergent twin transition to clean energy and digitisation. The report also cautions that the pursuit of export-driven revenues in several African countries continues to take precedence over the need for universal access, leaving significant segments of the population without modern energy supplies. However, it describes the emergence of increased private-sector financing and investment as a positive signal, arguing that this trend is being driven by supportive policies, rising demand, cost reductions in renewable energy and access to financing. The report highlights South Africa's decision of 2021 to ease licensing requirements on distributed projects, which it says is resulting in a notable surge in renewables projects related to commercial and industrial sectors. WEC secretary-general Dr Angela Wilkinson confirmed that the World Energy Trilemma framework itself was being redesigned to align with changes under way in the energy sector and to ensure that the tool remained relevant to policymakers. "This latest edition of the World Energy Trilemma Report demonstrates that how we got 'here' won't get us to 'there' when it comes to managing orderly, inclusive and just global energy transitions. "The future of energy is going to be much more demanding, literally! As we redesign energy for people and planet, we are transforming the World Energy Trilemma framework to extend the practical use of this performance management and pathfinding tool beyond countries to regions and cities," Wilkinson reported.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Young South Africans, aged 35 and younger, are demonstrating a growing preference for private mobility. This is evident in recent WesBank data that shows a consistent increase over the past three years in the number of vehicle finance applications for new and pre-owned cars by Millennials and Gen-Zs. This upward trajectory was tracked from 2021, when 722 505 vehicle finance applications were received from young people aged 35 and younger. This number increased to 806 458 in 2022, and 826 088 by 2023. "This is contrary to previously held views by industry experts who suggested that a desire for private car ownership would wane amongst Millennials and Gen-Zs in favour of alternative forms of transport, such as e-hailing services," says WesBank marketing and communications head Lebo Gaoaketse. "Vehicle purchases among this age group have, however, indeed slowed down, as reported in 2023 by data analytics firm Lightstone, which noted that those under 35 accounted for 39% of new car purchases in 2012, but only 31% in 2022. "Viewed in conjunction with WesBank's vehicle finance applications data, though, it becomes clear that the subdued sales are not a result of diminished desire for personal cars, but rather a symptom of a depressed economy and strained affordability across all age groups, including Millennials and Gen-Zs," says Gaoaketse. To stimulate sales, manufacturers, dealerships and finance houses have ramped up their incentive programmes in recent times by offering discounts, alternative finance structures and extended loan terms to ease the load carried by consumers seeking to purchase a car. "For recent graduates, for instance, who might not have a credit history, WesBank introduced a graduate finance programme, which grants young people access to vehicle finance despite not having a credit record," notes Gaoaketse. "However, more needs to be done to help young South Africans attain their aspiration for safe and reliable private mobility, which in many cases can also be a key consideration for a successful job application. "It may also be necessary for those seeking vehicle finance to consider more affordable alternatives in the pre-owned space or among value-oriented importers that have recently entered the local market," he advises.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Food processing company Tiger Brands has unveiled a new peanut butter manufacturing facility for its Black Cat brand in Chamdor, Krugersdorp. Having moved from another facility in Randfontein, the company has invested R300-million in the new facility that offers more space, increased peanut processing capability and the opportunity for research and development to improve its products. The new facility is located on 8 610 m2 of land and produces, on average, one-million jars of peanut butter a month. During an official opening of the factory on April 12, Trade, Industry and Competition Deputy Minister Nomalungelo Gina welcomed the continued investment by Tiger Brands in the country, saying it signals the company's confidence and commitment to localisation. The investment in the new facility marks the single-largest capital investment that Tiger Brands has undertaken in South Africa, to date. CEO Tjaart Kruger said consumers want more affordable and healthier food options and the company intends to tweak its recipe and packaging to ensure the best price point for consumers. In particular, the company has upgraded its packaging line for greater flexibility and quicker innovation. The new facility will enable improved efficiencies and a lower cost profile, allowing Tiger Brands to maintain its prominent position in the spreads market and to remain responsive to customer needs. Additionally, the new factory includes a canteen and training centre that could not be accommodated at the prior facility. The peanut butter category accounts for 50%, or R1.7-billion of the total South African spreads market, excluding margarine, and is worth R3.4-billion. Black Cat peanut butter was first launched in 1926 and has grown to be one of the best-selling brands in the market with five-million kilograms sold every year in formal retail stores. Consumer research shows that Black Cat is found in seven out of every ten South African households. Tiger Brands culinary MD Dumo Mfini said the significant investment by Tiger Brands would further strengthen and grow a proudly homegrown brand. He added that, as consumers seek value for money, the company is well positioned as one of the top manufacturers in the market to meet their needs of affordability and nutritional value, with the added benefit of superior quality that Black Cat is known for. The Krugersdorp peanut butter facility produces two ranges of peanut butter - the mainstream variety that contains 91% real peanuts, with the balance of the product comprising sugar, salt and stabiliser, and 99% peanuts variety that contain no added sugar or salt. Tiger Brands procures between 10 000 t and 20 000 t of ground nuts every year from local and international markets. Mfini noted that about 70% to 80% of peanuts can be sourced locally, with the balance needing to be imported. The new facility allows Tiger Brands to remove the peanut skins during processing, which are sold as animal feed. Nearly 60 t of this by-product is extracted and sold every month. Notably, the peanuts undergo a process of inspection for quality and safety before processing, roasting, blanching, colour sorting and milling. The plant is largely automated but managed to retain the 62 full-time employees that worked at the Randfontein site previously. Mfini pointed out that peanuts are a major source of protein for many households, with every 100 g of nuts containing 25 g of protein - which is more than eggs. Given that peanut butter is a staple in many households, Gina was encouraged by Tiger Brands' plans to make its products more affordable and better suited to consumer needs as they evolve.

Engineering News editor Terence Creamer discusses the halt in loadshedding over recent weeks; what South Africans should expect for the higher-demand winter period; and the longer-term outlook for South Africa's electricity sector.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Contractual negotiations are under way between the developers of the HySHiFT sustainable aviation fuel (SAF) project, in Mpumalanga, and the intermediary company set up under Germany's H2Global scheme, known as Hintco, which enters into long-term purchase contracts for clean hydrogen and derivatives such as ammonia, methanol and SAF. Speaking at Resources for Africa's 2024 Hydrogen Discussion in Johannesburg ENERTRAG business case development manager Jonathan Metcalfe reported that the project, which was being developed by Sasol, Linde, ENERTRAG and Hydregen, had been selected as a preferred bidder and that the negotiations for a ten-year offtake deal could be concluded by mid-2024. "We are currently in contractual negotiations with Hintco … and we are ready to commence detailed engineering [having already] completed the front-end engineering design on the project." Through H2Global, long-term purchase agreements are extended to projects producing green-hydrogen-based products outside of Germany, which are then sold under short-term contracts to European consumers, with public funding used to compensate for any difference in pricing. Through HySHiFT, the plan is to used renewable electricity from wind and solar resources in an electrolyser to split water into hydrogen, which will be used to displace a portion of the coal-based hydrogen that Sasol uses in its Fischer-Tropsch reactors to produce carbon-neutral kerosene. The target is to produce 50 000 t/d of such kerosene, which could fuel two daily flights between Germany and South Africa. The offtake agreement with Hintco could play a significant role in ensuring the project's bankability, but Metcalfe indicated that the ten-year contract was not sufficiently long to ensure prices that were low enough for a binding offtake agreement. Discussions were, thus, ongoing with the European Union and Germany about a longer-term floor price. Improving demand-side conditions for green hydrogen projects was also highlighted as a priority by International Energy Agency energy technology analyst for hydrogen and alternative fuels José Miguel Bermúdez Menéndez, who cautioned that initiatives to stimulate demand for green and low-emission hydrogen were lagging production ambitions. He said the number and size of announced projects was growing rapidly, which could result in production of 35-million tons by 2030, against potential demand from a combination of policy initiatives, aggregation and private offtake currently estimated at between 10- and 19-million tons for 2030. "Without robust demand, low-emission hydrogen producers will not be able to secure offtakers that are needed to underpin the large investments that are required, which jeopardises the viability of the entire global low-emission hydrogen industry," Menéndez warned. He called for bolder actions to stimulate demand, particularly for existing hydrogen uses.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The City of Cape Town should have battery electric buses (e-buses) operational on its MyCiTi bus service by 2027, says Urban Mobility MMC Rob Quintas. It will be the city's second stab at rolling out the zero-emission technology, following an unsuccessful attempt as an early adopter in 2018. E-buses has since experienced significant progress in terms of range and technology. Quintas tells Engineering News Online that the Cape Town council gave the Urban Mobility Directorate the go-ahead to proceed with adopting alternate energy buses as part of MyCiTi Phase 2A. Phase 2A will expand the bus service to run between Mitchells Plain, Khayelitsha, Wynberg and Claremont. "At this point in time it is foreseen that the first routes will be operational by mid-2027, if all goes as planned," says Quintas. However, the service will not only use e-buses. Cape Town's Climate Change Action Plan commits the city to transition to electric or alternative-fuel-powered freight, bus, taxi and passenger vehicles by 2050, explains Quintas. In terms of this plan, the city's Urban Mobility Directorate is mandated to develop a procurement strategy for low-carbon-emission vehicles and fuel technologies in pursuit of carbon neutrality. This initiative also aligns with the national Department of Transport's Green Transport Strategy (2018 - 2050) which states that 10% of municipal bus fleets must use clean energy within the next 10 to 20 years. "As such, the directorate has initiated a procurement strategy aimed at zero-emission vehicle solutions for the city's bus fleet," notes Quintas. "The first step was to identify the most suitable alternative or green-vehicle and fuel-technology options for the MyCiTi bus service, supported by the necessary infrastructure. "The directorate conducted a feasibility study of alternative-energy vehicles, including compressed natural gas, hydrogen electric, battery electric, hybrid and Euro VI [internal combustion engine] buses. "Key recommendations from this study advocate for the adoption of a dual strategy, involving the acquisition of both [cleaner] Euro VI diesel buses and battery electric buses for the upcoming procurement cycle for the roll-out of the second phase of the MyCiTi bus service," says Quintas. Quintas emphasises that the city will continue to investigate alternative fuel options given the continuous technology changes within the zero- and low-emissions transport industry. "These need to be monitored to ensure the city procures the best available technology at the time of procurement."

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. A new study has found that South Africa's fossil fuel subsidies tripled between 2018 and 2023, rising to R118-billion from R39-billion over the period, with subsidies having been increased largely in response to the surge in fuel prices following Russia's invasion of Ukraine in 2022. Titled 'Blackouts and Backsliding: Energy Subsidies in South Africa 2023', the International Institute for Sustainable Development (IISD) report calculates that oil and gas subsidies more than doubled over the five years to R52-billion compared with R23-billion in 2018. The value-added tax exemption on the sale of petroleum, diesel and illuminating paraffin remained the highest-value oil and gas subsidy at R30-billion, but other oil and gas subsidies also increased. These included a freeze on the general fuel levy on petrol and diesel in February 2022, which was then reduced by R1.50 a litre from April to June, resulting in R12.6-billion in foregone revenue to the National Treasury. The IISD argues that these "untargeted" subsidies were mostly skewed in favour of richer consumers and recommends that they be redesigned initially to support vulnerable consumers and eventually replaced with alternate social welfare support. The subsidies were increased largely in response to the global energy crisis and came as global fossil fuel subsidies hit a record of $1.5-trillion in 2022, with governments around the world scrambling to respond to the energy crisis. The balance of the fossil fuel subsidies in South Africa in 2023 arose from carbon tax exemptions for large emitters such as Eskom and the electricity sector more broadly, where coal accounts for 86% of all generation. The largest electricity subsidy arose in the form of the Free Basic Electricity access programme at R10.6-billion. However, the IISD questions the effectiveness of the 50 kWh monthly allowance, arguing that it should be at least 250 kWh and redesigned to ensure that poor and vulnerable households were genuinely able to access the subsidy. "Soaring fossil fuel subsidies in South Africa mean the country is still locked into dependence on economically volatile fuels, with ill-targeted consumer subsidies failing to protect the poorest families," said report co-author Anna Geddes, who is an associate consultant at IISD. South Africa, the report notes, committed to phasing out inefficient fossil fuel subsidies as a member of the G20 in 2009 and, more recently, as part of the COP28 agreement to triple the world's installed renewable capacity to 11 000 GW by 2030.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. State-owned electricity utility Eskom will reduce planned maintenance to 3 000 MW during the upcoming winter season and will seek to keep unplanned breakdowns to below 14 000 MW in a bid to navigate the high-demand period with limited loadshedding. During the summer period, from September to the end of March, the utility set a target of restricting unplanned breakdowns to 14 500 MW during the high-maintenance summer months, when average planned maintenance levels of 7 000 MW were targeted. During those periods when breakdowns exceeded the target, loadshedding was typically implemented, at times at high levels of intensity of between Stage 4 and 6. While the winter outlook was still being finalised, Eskom Generation's Eric Shunmagum confirmed during a briefing on the implementation of the Energy Action Plan that it should be released later this month. He also confirmed that the diesel budget for the 2024/25 financial year would be below the R30-billion set aside for the operation of the Eskom and independent power producer open-cycle gas turbines in 2023/24; a budget that he confirmed had been marginally exceeded, without providing specifics. The diesel budget for the current financial year, meanwhile, would be communicated at a future briefing. Speaking amid a sustained period during which Eskom had not resorted to loadshedding, Shunmagum stressed that the winter plan, as with previous plans, would contain three scenarios, with the base scenario likely to indicate only limited loadshedding for the period from April to the end of August. He also insisted that Eskom Generation would work to ensure that breakdowns were kept below the 14 000 MW level to further reduce the threat of loadshedding. However, the coal fleet remained unreliable with intense recovery work still under way at six priority stations, including Majuba, Matla, Duvha, Kendal, Tutuka and Kriel, which had replaced Kusile on the list after Kusile's performance was deemed to have recovered following the introduction of temporary stacks. EAF TARGET MISSED Meanwhile, Electricity Minister Kgosientsho Ramokgopa confirmed that the Eskom fleet failed to achieve the 65% energy availability factor (EAF) target set by the board for the end of March, coming in at only 54.6%. The performance was even below the 56% EAF reported by Eskom in its previous financial year. Nevertheless, Shunmagum described the target as non-negotiable and insisted that the 65% to 70% target remained intact for the current financial year. Ramokgopa attributed the failure to achieve the EAF target to "aggressive planned maintenance" efforts, which he said were prioritised ahead of lifting the EAF to closer to 60%. "Planned maintenance increased from 9.3% in FY2023 to 12.0% in FY2024 reinforcing the commitment to execute the recovery plans and reduce plant risks," he said. The Minister also insisted that various additional capacity was scheduled to be added or returned to service over the coming five months, including: Medupi Unit 4 in August, where a second-hand generator was being installed after a unit was crippled by a fire incident in August 2021; Koeberg Unit 2, which is currently scheduled to return from an extended outage in September; and Kusile Unit 6, which is also currently scheduled to be synchronised to the grid in September. "In the next five months, we should be able to get 2 583 MW of new generation capacity [from Eskom]," Ramokgopa said. He also played down concerns that up to 2 100 MW of Kusile capacity would be unavailable from November, when the three units that are currently bypassing the flue-gas desulphurisation (FGD) plant using temporary stacks, were scheduled to start being reconnected to the FDG through the west stack. The west stack was rendered inoperable when Kusile's Unit 1 flue duct collapsed because of an unco...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Forestry, Fisheries and the Environment Minister Barbara Creecy has granted Sasol South Africa permission to employ a load-based limit to regulate the sulphur dioxide (SO2) of its Secunda boilers in a decision upholding the JSE-listed group's appeal of an earlier National Air Quality Officer (NAQO) determination stipulating the use of a concentration-based limit. Sasol lodged an appeal on July 31, 2023, after NAQO published a determination on July 11, 2023, stating that it was not empowered to grant permission to Sasol to apply an alternative limit for SO2 after a once-off postponement had already been granted to the Secunda operations. The 17 Secunda boilers are currently operating on the basis of a ten-year postponement, until March 31, 2025, in the meeting of new plant standards for SO2 emissions, which was granted on February 23, 2015. Sasol requested that it be allowed to reduce its SO2 emissions by reducing the total number of boilers in use at Secunda and thus the load, rather than by reducing the concentration of SO2 produced by each boiler. NAQO argued that the load-based limit did not comply with the concentration-based limits prescribed in the Minimum Emission Standards (MES) and could, thus, not be considered. Sasol stated in its appeal that the Minister was empowered to consider a fresh 12A application under the National Environmental Management: Air Quality Act. The group argued in its appeal that this approach would result in an improvement of ambient air quality within the local airshed over and above MES compliance, while ensuring that its operations continued. It said a refusal would result in it winding down the Secunda Operations. On April 5, the Minister upheld Sasol's appeal and set aside the decision of the NAQO. In a statement, Sasol said the Minister concluded that its application met all the requirements of Clause 12A, and replaced the NAQO's decision by permitting that a load-based limit of 503 t/d of SO2 be applied from April 1, 2025, up to March 31, 2030. "We will engage with the Minister to finalise the regulatory requirements for the decision to take full effect, following which our atmospheric emission license will have to be varied accordingly," the company added. Just Share, which opposed Sasol's appeal, said the upholding of Sasol's appeal would result in emissions significantly above those permitted by the MES, which the organisation said were already weaker than comparative standards around the world. "This decision means that the government has permitted a private company to set its own pollution limits, making a mockery of pollution laws and constitutional rights, and of any claim by the government to take public health seriously," Just Share added. Creecy noted that those dissatisfied with the decision had the right to apply to a competent court within 180 days to have the decision judicially reviewed.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Leading African independent power producer Globeleq says the 153 MW/612 MWh Red Sands project, which was recently awarded preferred bidder status under South Africa's inaugural battery storage public procurement round, will be the largest standalone battery energy storage system (BESS) in Africa and will carry an investment value of R5.7-billion. It is smaller than the 225 MW/1 140 MWh BESS deployed at Scatec's Kenhardt project, also in the Northern Cape. However, Kenhardt is a hybrid solar-battery project developed under the separate Risk Mitigation Independent Power Producer Procurement Programme, which requires the plant to produce 150 MW of dispatchable electricity daily from 5:00 until 21:30. The Red Sands project was originally developed by African Green Ventures, which Globeleq acquired last year from Magnora, a Norwegian company listed on the Oslo Stock Exchange. Located about 100 km southeast of Upington, the lithium-ion battery project will be constructed on a 5 ha site and will connect to the grid through the Eskom Garona substation, which Globeleq says will be upgraded by Red Sands to ensure that full network support capabilities of the batteries can be utilised. Red Sands was not initially named as a preferred bidder on November 30, when Minerals Resources and Energy Minister Gwede Mantashe announced the first four preferred projects selected following Bid Window One (BW1) of South Africa's Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). However, Mantashe also announced that "value for money" negotiations were under way with a fifth bidder with the aim of having the bid window's full 513 MW/2 025 MWh allocation assigned to independent power producers across the five Northern Cape substations selected by Eskom. The four projects identified were the 103 MW Oasis Nieuwehoop and 77 MW apiece Oasis Aggeneis and Oasis Mookodi projects, bid by an EDF Renewables-led consortium and the 103 MW Scatec-led Mogobe, located at the Ferrum substation. On March 28, the Department of Mineral Resources and Energy (DMRE) announced that negotiations with a fifth bidder had been concluded and that the Red Sands project had been selected as a preferred bidder for development at the fifth substation selected for the round, which was launched in March 2023. Globeleq CEO Mike Scholey expressed delight at Red Sands having received preferred-bidder status and said the company looked forward to working with government to advance the project to financial close and into operation. Globeleq says the project will take 24 months to construct after financial close, which is expected later this year. "Electricity storage is going to be key not only in helping South Africa meet its considerable industrial and domestic demand for energy but also in meeting growing demand right across Africa as more and more renewable energy projects benefit from the advances our industry has made with battery storage technology," Scholey said. Red Sands will be Globeleq's first large-scale BESS project in South Africa where the group also owns and operates six solar photovoltaic plants and two wind farms with a total generating capacity of 384 MW. The company, which is owned 70% by British International Investment and 30% by Norfund, also owns a combined solar and BESS plant at Cuamba in Mozambique and is developing other BESS projects across the African continent. Meanwhile, the DMRE recently launched a request for proposals for BESIPPPP BW3, which has a 616 MW/2 464 MWh allocation across five pre-selected substation sites in the Free State. A bid submission deadline of July 31 has been set after the deadline for BESIPPPP BW2, which was launched in December for sites in the North West province, was extended from April 30 to June 6.

Engineering News editor Terence Creamer discusses the latest developments with regard to the procurement of new electricity generation capacity and storage.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. All the suspensive conditions opening the way for the National Transmission Company of South Africa (NTCSA) to be constituted as a separate, distinct and wholly-owned subsidiary of Eskom Holdings have been met, Public Enterprises Minister Pravin Gordhan and Eskom chairperson Mteto Nyati have announced in a joint statement. Still outstanding, however, is the fulfilment of Companies Act requirements, which meant that the April deadline for the full operationalisation of the NTCSA had been missed. It is anticipated that the NTCSA will commence trading about two months after the fulfilment of these requirements. The suspensive conditions that have been met include consent from relevant lenders and creditors, the passing of resolutions by the government and the boards of NTCSA and Eskom, as well as the approvals for electricity licences and other regulatory requirements by the National Energy Regulator of South Africa. "The satisfaction of all the suspensive conditions for the merger agreement between Eskom Holdings and the NTCSA signifies a key development in the government's pursuit of a restructured, competitive and dynamic electricity market that will usher in a secure and reliable energy future for South Africans," Gordhan said, while Nyati described the development as a significant milestone in Eskom's turnaround plan. "The separation of the transmission division from Eskom will now set the NTCSA on the path for operationalisation once the necessary statutory requirements as per the Companies Act have been concluded," Nyati added. The legal separation of Eskom into three entities, namely generation, distribution and transmission, was outlined in the Department of Public Enterprises' 2019 'Roadmap for Eskom in a reformed electricity supply industry' and is also in line with legislative reforms being introduce through amendments to the Electricity Regulation Act, which was passed by the National Assembly last month. Gordhan also appointed the inaugural NTCSA board on January 9. In their statement, Gordhan and Nyati argued that the legal separation of NTCSA would improve business performance, increase lender appetite, and bolster confidence among independent power producers that they would receive fair treatment.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Heavy equipment manufacturer Bell Equipment has been growing its business organically by investing in the development and enhancement of products, increasing market share in key regions, such as the Middle East, and growing the Bell Heavy Industries (BHI) contract manufacturing business. Bell Equipment CEO Ashley Bell tells Engineering News that the company has initiated discussions with potential customers to help stimulate the South African manufacturing sector through contract manufacturing. Bell envisions providing contract manufacturing services to the construction, energy, mining and transport sectors. He adds that the BHI initiative is still in its early stages, with systems and processes being put in place to deal with third-party clientele, but Bell is confident it will gain further traction over the remainder of the year. Responding to whether the company's existing manufacturing facilities will need to be expanded to accommodate for contract manufacturing, as well as new products that Bell Equipment will be manufacturing from 2025, Bell says the legacy plant it has in Richards Bay has the capability to accommodate the additional manufacturing, particularly as the company pursues a greater level of articulated dump truck (ADT) manufacturing at its German factory. The company is also adequately staffed with manufacturing experts that can take on third-party manufacturing projects. Bell Equipment aims to manufacture its northern hemisphere-bound ADTs closer to suppliers and markets, which leaves room in the South African facility for other types of manufacturing. Among the new products that Bell Equipment will be manufacturing from 2025 are a Bell Motor Grader and a Timber Processing Head. The Motor Grader has been in development for four years and will take its place alongside the reputable Bell Equipment ADT line in the local and global market. Bell says extensive testing on the machine has ensured it has the durability and reliability that are expected from Bell Equipment. The Bell Motor Grader marks a significant step forward in the company's strategy to grow its own range of manufactured products for the global construction and mining industries, particularly as many graders in the market have been found to be insufficient and prone to failure. The grader has been designed with varying emission regulations in international markets in mind, as well as different types of operator controls. It is engineered to operate in the most challenging and harsh environmental conditions and includes a range of features to help improve productivity, maintain costs and deliver work efficiently. In turn, the Timber Processing Head will complement the company's range of equipment on offer for the forestry and agriculture industries. Bell says this product is distinguished owing to its catering for mechanised harvesting operations, compared with traditional manual harvesting type systems. The Bell Equipment Timber Processing Head will be the first of its kind to be designed and manufactured in South Africa. To further improve its offering to the timber and agriculture industries, Bell Equipment has been appointing a number of independent dealers for its forestry and agriculture business across South Africa, in addition to its own-managed branches and mining- and construction-focused independent dealers. Moreover, Bell Equipment is also undertaking research and development on different technologies for cleaner propulsion, including alternative fuel. Bell explains that many companies are going through a learning process on what would be the most suitable alternatives for construction equipment, particularly large machines. Some of the options the company is looking into are hydrogen and battery electric-powered drivetrains for machines, but no commercial solutions are in devel...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Business Leadership South Africa (BLSA), whose members include the largest domestic and foreign companies operating in South Africa, has added its voice to a growing chorus of opposition to the draft Integrated Resource Plan 2023 (IRP 2023) and has called for it to be "revised immediately". Writing in her weekly newsletter, CEO Busisiwe Mavuso said no good case had been built for the assumptions in the IRP 2023 and warned that the document was "tainting" the positive news associated with reduced levels of loadshedding, which she attributed to the Energy Action Plan and the collaboration between government and business. "The first, overarching problem, is that it goes against the least-cost principle and presents some spurious costing estimates that appear to elevate the price of renewable energy and underestimate the cost of fossil fuels. "Then it slashes the amount of renewable energy - still easily the cheapest form of new energy generation - to be installed between 2024 and 2030 via public procurement from 15.2 GW in IRP 2019 to 8 GW in IRP 2023. "The huge increase in the allocation to gas is also eyebrow-raising - it allocates 7.22 GW to gas-based generation, up from 3 GW in the IRP 2019," Mavuso writes, while noting an absence of the infrastructure required for the importation of gas. Also questioned is the IRP 2023's assumption of a delayed coal shutdown, which failed to take account of the extension costs, and the market reality that "funding for new fossil fuel ventures does not exist". The document's misalignment with domestic climate policy is also highlighted, along with the threat posed to business by the imminent implementation of carbon taxes. Mavuso said the 900 MW yearly allocation in the IRP 2023 for rooftop solar was an underestimate in light of the fact that far higher levels of deployment were already being achieved. While the low future demand trajectory assumed "puts the entire modelling process at risk". "The bottom line is that we need electricity that is affordable, reliable and can come onstream quickly. "Anything that goes against that doesn't make sense and the IRP needs to be reworked to facilitate this - it's an imperative to enable economic growth and boost employment," Mavuso wrote. She also referred to the document as but one example of bad policy, mitigating against economic growth and employment creation. "To get to the point where the economy is growing fast enough to create jobs at a significant rate, all the dysfunctional elements need to be remedied," she added, highlighting transport and logistics, water, infrastructure, poor service delivery, State company inefficiency and ongoing corruption as key concerns for business. "Opposition within government to reforms slows everything down at best or results in failure," she added. BLSA's input on the IRP 2023 follows on from the March 23 deadline for public comment on the draft document, which was published in early January. In the run up to the deadline, several business and civil society organisations also strongly criticised the document and appealed for it to be overhauled.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The Department of Mineral Resources and Energy (DMRE) has launched South Africa's third public procurement round for utility-scale batteries, while also extending the bid submission deadline for Bid Window Two (BW2) of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) launched in December, and naming a fifth preferred bidder from BW1. In a statement, the department said the BESIPPPP BW3 request for proposals was seeking bidders for 616 MW/2 464 MWh of battery projects by July 31 for five pre-selected substation sites. The sites, which have been identified by Eskom, are all located in the Free State and include the Harvard, Leander, Theseus, Everest, and Merapi substations. The DMRE also confirmed an extension to the bid submission date for BESIPPPP BW2 from April 30 to June 6, having previously announced a similar extension for BW7 of the Renewable Energy Independent Power Producer Procurement Programme from April 30 to May 30. The extensions, the DMRE indicated, were granted so as to align with the new timelines granted for application for cost estimate letters from Eskom for grid connection, as well as requests from potential bidders. Meanwhile, the department also announced the appointment of a fifth preferred bidder for BESIPPPP BW1, having selected the other four on November 30, following the inaugural public procurement round for battery storage for 513 MW/2 025 MWh launched in March last year. Following "value for money" negotiations, the DMRE reported that AGV Projects had been selected to build the 153 MW Red Sands battery energy storage project at the Garona substation, one of five Northern Cape substations sites identified for the round by Eskom. The Red Sands battery energy storage project had an investment value of R6.4-billion and a bid evaluation price of R16.5-billion, or R546/MWh cost. The other four projects had a combined investment value of R10-billion and a combined capacity of 360 MW/1 440 MWh. They included the 77 MW apiece Oasis Aggeneis and Oasis Mookodi projects, the 103 MW Oasis Nieuwehoop, all being developed by consortia led by EDF, as well as the 103 MW Mogobe battery energy storage project, being developed by a Scatec-led consortium.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Cabinet approved the publication of the long-awaited Gas Master Plan for public comment during what was the last formal meeting of the executive ahead of the May 29 election. However, Minister in The Presidency Khumbudzo Ntshavheni indicated that special Cabinet meetings could still be convened should the need arise. The master plan, Ntshavheni said, was supportive of government's commitment to diversifying the country's energy mix away from coal-fired power plants. She added that the document would be used as a policy instrument to guide gas investment in the country, which currently imports gas through a pipeline from southern Mozambique, from fields where production is set to taper before the end of the decade. "The master plan will enable a natural gas economy that is favourable to investors and can provide an alternative source of energy for the country's electricity sector." The Gas Master Plan has been published amid warnings of a "gas cliff" for industrial consumers in Gauteng and KwaZulu-Natal from mid-2026, at which date Sasol will divert the remaining gas imports from its wells in Mozambique towards its own facilities in Secunda and Sasolburg to help reduce its use of coal and, thus, its carbon emissions. Several industrial consumers have accepted the need to switch to far more expensive imported liquefied natural gas (LNG), but are warning of a timing mismatch between Sasol's deadline and the prospect of constructing the import and regasification infrastructure required for LNG. They have also indicated that their combined 50 PJ/y demand is insufficient on its own to trigger the construction of a terminal in Maputo and the associated pipeline infrastructure that will be required. They are therefore calling for firm commitments to be made from South Africa's nascent gas-to-power (GtP) industry to provide the demand underpin required. However, critics are cautioning against South Africa making commitments to operate the GtP plants at high capacity factors, arguing that such a move could result in elevated electricity prices for decades. Mineral Resources and Energy Minister Gwede Mantashe recently acknowledged these growing security of supply concerns and confirmed that a task team had been set up together with the Department of Trade, Industry and Competition to work with industry on possible solutions. At the same time, he reported that his department had completed all the modelling and drafting work required for the release of the Gas Master Plan. Ntshavheni was unable to confirm whether public hearings on the plan would be held, saying only that the Department of Mineral Resources and Energy would manage the process and that public comments would be considered before the final plan was approved.

Engineering News editor Terence Creamer discusses the key reforms being pursued across the rail and ports sectors; the recent publication of a rail network statement and the subsequent concerns raised; and Transnet's owns recovery plan.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Energy group bp Southern Africa (bpSA) has set the expansion of its service station network in South Africa as a key priority as it moves to mark its centenary in a country where it first began operating on May 9, 1924. Communications and external affairs head Hamlet Morule tells Engineering News that bpSA intends rolling out 15 new sites during 2024, with ten sites currently in development, followed by a further 11 in 2025. Between R20-million and R25-million will be invested to build the new service stations, with the final price-tag dependent on the size of the site and its location, with far-flung sites generally costing more owing to the absence of readily available municipal services and access roads. The company already has more than 500 stations nationally and is now pursuing sites primarily on South Africa's major highways, as well as in high-growth urban nodes. Some of the sites will be developed by bpSA itself, while others will be dealer owned in line with its hybrid ownership model in South Africa. Morule says that, in parallel, the group will be piloting the roll-out of solar photovoltaic (PV) installations, to enable stations to begin transitioning away from their current reliance on diesel generators for backup power during loadshedding and other outages. Four sites have been selected for a solar PV pilot, which will kick off soon, including sites in Cape Town and Durban, as well as two in Johannesburg. "Once the pilot is successfully completed, we will roll out to all bpSA-owned sites," Morule says, indicating that the deployment is also in line with the multinational group's commitment to transitioning towards net-zero by 2050. Power purchase agreements will be signed with solar service providers, which will install, operate, and maintain grid-tied hybrid facilities over agreed time horizons. In the rest of the world the multinational is investing heavily in the roll-out of electric vehicle (EV) charging infrastructure at its retail sites, but Morule says that is not an immediate priority in South Africa, where EV penetration remains low. All the new sites will include convenience stores that will house bpSA's own Wild Bean Café brand, as well as its current partner brands of Pick n Pay, Nedbank Greenback, SA Taxi, Discovery Insure and Vodacom. Morule says the group will also use its centenary to reinforce its commitment to Southern Africa, which some questioned when the mothballed Sapref refinery, which bpSA owns jointly with Shell, was put up for sale a few years ago. The sale process to the State-owned Central Energy Fund was disrupted by the April 2022 floods in KwaZulu-Natal, which caused major damage at the refinery, but a future disposal has not been discounted. The group's role in the region was also questioned after bpSA announced in 2023 that it had decided to exit all its aviation-fuel activities in South Africa, after the Airports Company South Africa entered into contracts with alternative domestic suppliers. Besides its retail business, bpSA remains a shareholder in black-empowered Masana Petroleum Solutions, which is focused on supplying fuels to large South African businesses and it also owns Castrol, which supplies lubricants across the region. The company employs 556 people, 56% of whom are women. "We've had a long history in South Africa and have a long-term vision to grow our retail business and to continue supplying fuels and lubricants, while transitioning from being an oil group to playing a role in the energy transition," Morule says.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Despite record renewable-energy installations of 473 GW last year, the International Renewable Energy Agency (Irena) says the pace of deployment remains well below that needed to match the global goal of tripling capacity by 2030. In addition, the geographic distribution of new investment was highly uneven, with Africa lagging in particular. The 'Renewable Capacity Statistics 2024' report states that the installed renewables base climbed 13.9% to 3 870 GW in 2023, underpinned by solar photovoltaic (PV) installations, which surged by 32.2%, or 346 GW. Together with wind, solar PV accounted for 98% of the new renewables capacity installed last year, with hydro accounting for the bulk of the balance. "This growth in wind and solar led to the highest annual increase in renewable generating capacity as well as the highest growth on record in percentage terms," Irena said, adding that renewables accounted for 86% of all capacity additions last year. Renewables' share of total power capacity also rose by almost three percentage points from 40.4% in 2022 to 43.2% in 2023. A total of 326 GW, or 69%, of the new renewables capacity was added in Asia, underpinned by China, whose capacity increased by 63% to reach 297.6 GW. All other regions also experienced growth, with Europe and North America installing 71.2 GW and 34.9 GW apiece, with growth rates of 10% and 7% respectively. Africa also continued to grow, by at a more modest pace of 4.6%, adding 2.7 GW last year, reflecting what Irena director-general Francesco La Camera described as a "decarbonisation divide". Irena also stressed that far more still needs to be done to achieve the goal adopted at COP28 to triple installed renewable power capacity by 2030 to reach 11 TW. "Policy interventions and a global course-correction are urgently needed to effectively overcome structural barriers and create local value in emerging market and developing economies, many of which are still left behind in this progress. "The patterns of concentration in both geography and technology threaten to intensify the decarbonisation divide and pose a significant risk to achieving the tripling target," La Camera said.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The South African Photovoltaic Industry Association (SAPVIA) questions both the cost assumptions used for the technology in the draft Integrated Resource Plan 2023 (IRP 2023), as well as the 900 MW yearly build limit placed on distributed solar in its formal submission to the department. SAPVIA's response, which was submitted ahead of the March 23 deadline for public comments, states that the technology cost assumptions for solar PV have been inaccurately estimated for Horizon 1 to 2030 (The draff IRP 2023 also includes Horizon 2 from 2030 to 2050). The association, which has more than 800 members from across the solar value chain, also argues that the input cost assumptions for all renewable energy generation technologies appear higher than international benchmarks. "Resultantly, the modelling outcomes in Horizon 1 contain less renewable generation capacity compared to the previous IRP iterations and less than benchmark studies and comparative modelling," SAPVIA states, arguing that these assumptions should be amended to reflect costs associated with public and private projects already procured domestically. The absence of technology learning rates and cost decreases is also highlighted, including expected significant cost decreases for battery storage. SAPVIA, thus, recommends, that the department undertakes revised modelling with updated technology costing to develop a least-cost reference case against which later policy adjustments can be made. The organisation has also urged the Department of Mineral Resources and Energy to clarify the rationale for placing a 900 MW yearly build limit on distributed solar, describing the rationale for the limit as "unclear". It highlights that the 900 MW constraint does not reflect Eskom data showing that 2 352 MW of private solar PV was installed from February 2023 to February 2024. Likewise, it does not align with the 384 solar PV project registrations with the regulator last year for a total capacity of 2 738 MW, or the SAPVIA Installed Capacity Dashboard, which recorded additions of 1 203 MW in the first quarter of 2023 alone. CEO Dr Rethabile Melamu notes that there is already a mismatch between the prevailing IRP 2019 and solar PV installation rates and that there is likely to be even greater divergence should the draft IRP 2023 become the official plan. While SAPVIA supports the splitting of the IRP into two horizon's, it highlights that Horizon 1 does not adequately address loadshedding, which should be a primary objective. "The updated IRP 2023 must indicate a stronger urgency towards energy security and a firm plan to eliminate loadshedding in Horizon 1." The comment document also points to a misalignment between the draft IRP 2023 and other government policy and recent industry development, including reforms under way in the electricity supply industry (ESI). SAPVIA argues that, for effective implementation, the IRP should be calibrated with other policies, including the National Development Plan, Eskom's Transmission Development Plan, the South African Renewable Energy Masterplan and the Electric Vehicles White Paper, as well as new electricity and climate legislation. "Alignment between the IRP and the changing ESI landscape brought about by market reform in South Africa is crucial for policy certainty. "Both are key enabling factors for private sector participation in the generation and, eventually, in the transmission and distribution industries," SAPVIA argues. Melamu indicates that SAPVIA is ready to collaborate with government in finalising the IRP 2023 either through additional consultations, or through structures such as the National Economic Development and Labour Council.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Electricity Minister Kgosientsho Ramokgopa reports that Eskom's eight "lender groups" have given their consent to the establishment of the National Transmission Company South Africa (NTCSA) as a separate subsidiary under Eskom Holdings. Bondholder consent was one of several key approvals required ahead of the operationalisation of the NTCSA, officially scheduled for April 1, alongside the appointment of an independent board and licensing approvals from the regulator. Ramokgopa did not name the lender groups during a briefing on March 25, saying only that the eighth and final letter of consent was provided "last week". In February, the National Energy Regulator of South Africa (Nersa) officially published the three licences required for the operationalisation of the NTCSA, having approved their transfer from Eskom in 2023. And, Public Enterprises Minister Pravin Gordhan appointed the inaugural NTCSA board on January 9. In March, South Africa's Energy Regulator also consented to the transfer of powers and duties relating to power purchase agreements with independent power producers from Eskom to the NTCSA. Nersa said in a statement that NTCSA's trading licence would be amended to reflect the change. These regulatory decisions align with an application made to Nersa by Eskom, which is unbundling its generation, transmission, and distribution businesses in line with the 'Roadmap for Eskom in a reformed electricity supply industry' published by the Department of Public Enterprises in 2019. While being advanced under the existing Electricity Regulation Act (ERA), they also accord with some of the architectural changes outlined in amendments to the ERA, which were approved by the National Assembly on March 14. The legislation will now serve before the National Council of Provinces, whose approval is also required before it can be signed into law by the President. While opposition lawmakers have raised some concerns with the amendments, particularly with regard to the discretionary powers extended to the Energy Minister and with the future role envisaged for Nersa in setting prices and tariffs, Ramokgopa argued that the legislation would "remake the South Africa energy landscape". "One of the primary interventions [of the legislation] is to make it easier to produce and sell electricity in South Africa. "In order to do this, it established what the Bill refers to as a Transmission System Operator (TSO), which is managed by a newly formed entity that is wholly owned by Eskom and by extension wholly owned by the South African public, the NTCSA," Ramokgopa explained. He said the TSO would ensure that all electricity producers were treated "equally and fairly and be allowed access to the national grid on a non-discriminatory basis". Secondly, the legislation enables a "market platform" through which electricity can be bought and sold by multiple participants. Describing the legislation as a "democratisation" of the sector, Ramokgopa also forecast that the new framework would, over time, help reduce prices through competition and innovation, improve reliability by boosting investment in supply, and introduce consumer choice.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Toyota South Africa Motors (TSAM) has added the Hilux double-cab and Fortuner 48 V mild hybrids to its local production line-up at its Durban plant in KwaZulu-Natal. The addition of the new models brings Toyota's local hybrid production tally to three, adding to the existing Corolla Cross hybrid assembly. TSAM says the launch of the models "introduces electrification to the pick-up and sports-utility vehicle (SUV) range for the first time". The Hilux is South Africa's best-selling vehicle, while the Fortuner still commands the largest slice of the medium SUV segment in South Africa, with average sales of more 800 units a month and a market share of 40%. "By adding a hybrid 48 V system to the Hilux and Fortuner, Toyota strengthens its inclusive multi-technology pathway approach to carbon neutrality," notes the local arm of the Japanese manufacturer. "Toyota believes all customers need a variety of affordable and practical options, including for commercial and off-road vehicles." The hybrid system uses Toyota's 2.8 l diesel engine. This engine drives a compact motor generator using a belt system, which, in turn, charges the new 48 V, 7.6 kg lithium battery, which is small enough to be installed under the rear seats to minimise impact on cabin space. This battery also supplies the vehicle's 12 V system. Like Toyota's full hybrid electric systems, the battery is charged during deceleration, regenerating braking energy that would otherwise be lost, while also adding additional braking performance. Once charged, the battery sends up to 12 kW of power and 65 Nm of torque through the motor generator to the engine to enhance acceleration, power and efficiency. Toyota says the motor generator is compact and has been designed to withstand the harsher working environments of commercial vehicles, while the engine has been modified to adapt to the hybrid system. "A new two-arm belt tensioner and stronger belt material contribute to the improved drivability and a quieter ride, whilst retaining the vehicle's famous durability." Toyota also notes that the hybrid system, as well as an enhanced stop-start system that allows the engine to remain off for longer periods, both serve to improve fuel efficiency by up to 5% compared with the conventional non-electrified diesel powertrain. Mercedes-Benz, BMW, Toyota and Ford are all currently producing some form of hybrid in South Africa, or will soon do so.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Transnet CEO Michelle Phillips has acknowledged the initial negative reaction to a proposed tariff methodology published for comment by the interim Infrastructure Manager (IM) alongside the country's inaugural draft Network Statement, which will be used to govern access to the railway network for all train operators, including Transnet Freight Rail and private operators. However, speaking during the African Rail Industry Association (ARIA) annual general meeting, Phillips stressed that the methodology, which was based on an allowable revenue formula, had been benchmarked internationally and reviewed by reputable external advisers. "The methodology itself is a reasonable formula that allows the IM to recover costs associated with keeping the network at a standard that is reliable, safe and available and thus able to support freight rail logistics as required by industry," she said. The actual rate, Phillips added, had many dependencies, including whether government was able to provide support, as was the case in other countries where rail reforms had been implemented. However, the deterioration of the network, together with a maintenance backlog, meant that significant investment was required. That said, Phillips stressed that stakeholders had an opportunity to comment on both the Network Statement and the tariff methodology as part of a public participation process that would be facilitated by the Interim Rail Economic Regulatory Capacity (IRERC). "This is not Transnet trying to increase its revenues, it's an indication of what it costs to run this network and we expect everybody to interrogate it and engage with it and use the platform being provided by IRERC to comment." In his address, ARIA chairperson James Holley recognised the publication of the Network Statement as a "watershed moment" for the sector, but stressed that further research and consultations were required to assess whether the statement would truly open the way for investment. He said ARIA would work with its members to ensure that the Network Statement embedded national rail policy principles and became a "document that practically translates to investment into trains". In addition, the association would continue to champion the concessioning of portions of the network itself, which it viewed as necessary to facilitate the investment required to support efficient train operations in a context of fiscal constraint and a weak Transnet balance sheet. "In the general freight market, where rail and road compete on price, it is likely that private sector investment into trains will be significantly undermined by the operating risks and inefficiencies that result from poor track condition," Holley warned, while estimating the maintenance underspend between 2013 and 2023 at R29.9-billion. Partnerships were, thus, required to fund specific capacity expansions given that the concessioning of network segments had the potential to reinvigorate the rail sector, while retaining public ownership of the railway infrastructure. "These concessions need to be brought to the market with urgency," Holley argued. Meanwhile, Phillips confirmed that there had been a recovery in rail volumes since the launch of the Transnet Recovery Plan late last year, which would reflect in the 2023/24 volume performance. "The recovery in rail services has resulted in an increased forecast of about 150.8-million tons from the 142-million tons forecast at the initial implementation of the recovery plan. "We know we had promised a 154-million ton number … [and] we were very nicely on track, but in early January we had that rather big derailment on the coal line and we also had two derailments on the ore line," she explained. In 2022/23, rail volumes slumped to 149-million tons having been at 226-million prior to Covid.

Engineering News editor Terence Creamer discusses the fast-approaching deadline for public comment on the draft Integrated Resource Plan of 2023 and stakeholders' likely reaction.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The South African Independent Power Producer Association (SAIPPA) has added its voice to a growing chorus of opposition to the draft Integrated Resource Plan 2023 (IRP 2023), the comment deadline for which is on March 23. In its formal comment on the draft, SAIPPA argues that the document is seriously flawed and inadequate to meet the energy challenges of South Africa. "In its current form, the IRP does not constitute a firm plan to address the urgent energy security shortages and lacks the sense of urgency required to get the country out of a protracted energy crisis, which is causing devastating economic harm." This conclusion gels with the one made by Meridian Economics in its submission, in which it argues that serious problems with the modelling and cost assumptions used have resulted in the IRP 2023 arriving at "incorrect and economically damaging conclusions". SAIPPA argues that the IRP 2023, which includes two time horizons, "plans to fail" in the first horizon to 2030 by planning for a deficit, represented by ongoing loadshedding until at least 2027, instead of modelling options to address the shortage through the addition of new capacity. While questioning the rationale for the splitting of the plan into two horizons, the organisation also raises serious issues with Horizon 2, which it believes has been artificially shaped by a set of undisclosed new-build constraints to "derive a particular outcome". This, instead of modelling for least-cost generation, while meeting greenhouse-gas emission goals and ensuring stable and consistent electricity supply. "In both horizons, it appears that new-build constraints were applied as the outcomes across all scenarios show clearly that solar photovoltaic (PV) could not exceed 900 MW per annum up to 2050. "Additionally, wind capacity looks to be constrained between 2031 and 2040, where no more than 17.2 GW cumulative was allowed across all scenarios." Such constraints, SAIPPA says, make no sense from both a modelling and practical perspective, while describing as "preposterous" a scenario whereby these limits remain constant for decades. SAIPPA also questions all the technology cost assumptions used by the Department of Mineral Resources and Energy, noting that the solar PV and wind costs used are far higher than what has been achieved in various domestic procurement rounds, while the model does not cater for battery technology learning rates. But contrast it describes costs assigned to concentrated solar power and nuclear as "optimistic". "In essence the document is biased against renewable energy, by using the wrong cost comparisons … whilst nuclear and gas costs are almost always used in the lower percentile of cost and are, hence, optimistically reflected. "This results in outcomes that do not compare with what is happening elsewhere in the world." SAIPPA also questions the high load factor of above 50% assigned to gas-to-power facilities, as well as the inclusion of a scenario that assumes a steep recovery in the coal fleet energy availability factor (EAF), which has been declining for years. Also highlighted is the fact that the IRP 2023 does not clarify the cost assumptions used in the scenario where the shutdown of the coal fleet is delayed and whether these costs include investments at the five stations to meet South Africa's minimum emission standards. From a policy perspective, meanwhile, SAIPPA notes inconsistencies between the IRP 2023 and various other government policies, including its goal to reduce greenhouse-gas emissions. In its submission, SAIPPA also argues that the government, in drafting the IRP, should also take account of the envisaged liberalisation of the market, which will result in a gradual transition towards competition, especially in generation. "The need to have a formal IRP determination ...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. In an excoriating assessment of the draft Integrated Resource Plan 2023 (IRP 2023), Meridian Economics points to serious problems with the modelling and cost assumptions used by the Department of Mineral Resources and Energy (DMRE), which the consultancy says has resulted in "incorrect and economically damaging conclusions". Released days ahead of the March 23 deadline for public comment, Meridian described the IRP 2023 as an opaque document that fails to achieve its own stated purpose of ensuring a secure, affordable and clean power system. The long-awaited publication of the document on January 4 was met with immediate dismay when it emerged that it included loadshedding until at least 2027, which the IRP 2023 indicated could be addressed only through an improbably steep recovery in the performance of the Eskom coal fleet and a materially enlarged gas-to-power (GtP) fleet, operating at extremely high capacity factors. It also departed from previous versions by including two time horizons, with the GtP-heavy and renewables-light Horizon 1 covering the period to 2030, and Horizon 2 the period thereafter to 2050. An initial deadline of February 23 was set for public comment and the DMRE controversially refused to entertain public hearings; instead hosting only two virtual workshops, where public participation was limited to that of asking questions. The deadline was subsequently extended by Mineral Resources and Energy Minister Gwede Mantashe to March 23 "in order to allow maximum participation in this process". In its 92-page comment, Meridian concludes that the IRP 2023's failure to achieve system adequacy in the short term - along with a lack of transparency on key assumptions and an inadequate consultation process - has left the document lacking in credibility and out of step with various other government policies, including on climate, air quality, green industrialisation and nuclear. The methodology used to draft the IRP 2023 is described as confusing and inadequate to substantiate the outcomes, which Meridian concludes have arisen largely because of undisclosed constraints on the building of new solar photovoltaic (PV) and wind and an over-pricing of renewables. INEXPLICABLE NEW-BUILD LIMITS Meridian is particularly critical of the "inexplicable new-build limits" imposed on solar PV and wind in Horizon 2, which cap the yearly build of solar PV at 900 MW and wind at 1 720 MW. "There is no rational basis for such binding constraints, with 2.5 GW of rooftop solar PV added in South Africa in 2023 alone and 5 GW of panels imported." These "artificial, undisclosed constraints have been applied in generating the reference pathway", while several of the cost assumptions used as inputs are "problematic", the comment document adds. Technology costs used for wind, solar PV, concentrated solar power (CSP) and battery storage are significantly higher than the actual realised tariffs from recent procurement rounds and also ignore future technology learning. By contrast, the nuclear costs used are those received from vendors through the recent request for information, involving nonbinding indicative prices, while no costs are provided for flue gas desulphurisation retrofits and carbon capture, utilisation and storage. The methodology, Meridian adds, lacks optimisation, with the Horizon 1 analysis considering only capacity currently in development, with no power system optimisation conducted to determine potential additional new capacity that may end loadshedding sooner. The Horizon 2 analysis also includes technology combinations that are determined prior to optimisation, "presenting a false choice of options from a limited set of seemingly arbitrary and unrealistic technology combinations". Meridian also questions the IRP's accepting as given Eskom's delayed coal decommissioni...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Given the current economic downturn, government does not have the resources to look after all of its assets, says Department of Public Works and Infrastructure (DPWI) property management trading entity head Siza Sibande. "Hence we want to partner with the private sector to improve public facilities." Addressing a media conference at the Sustainable Infrastructure Development Symposium South Africa 2024, held in Cape Town this week, Sibande noted that the DPWI was now focused on leveraging and optimising State assets. "We developed a strategy that we call the State Immovable Asset Optimisation strategy. "We have entered a new phase where government will apply partnerships/collaborations with the private sector, such as refurbishment, operate and transfer; and build, operate and transfer. "The focus here is to leverage State assets by unlocking the value of underutilised immovable State assets." Sibande noted that the State had the biggest asset portfolio in the country, "yet the value we created out of these assets was close to zero". He added that the State's targeted immovable asset portfolio comprised of about 29 000 land parcels, or 4.7-million hectares of land. "This is quite a big portfolio that should be able to create a return on investment." Roughly 25% of the total land parcels were stand-alone and unutilised. "These are at risk of illegal occupations," said Sibande. Around 3% of the properties are in Pretoria alone, he added, with one of these being Telkom Towers. "This is one of those properties we want to leverage. It stands in the centre of the city. If we can refurbish it, we change the face of the inner city." Sibande said the State also held a large agricultural portfolio, "and we would want our people to have access to those properties with long leases". He added that DPWI had "issued the first round of some of these assets yesterday (March 17)."

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. National Treasury has allocated Infrastructure South Africa (ISA) a budget of R600-million over three years to "prepare projects", says ISA head Mameetse Masemola. Addressing a media conference at Sustainable Infrastructure Development Symposium South Africa (Sidssa) 2024, held in Cape Town this week, Masemola explained that there had been a "decimation of the skills" required for State projects to reach financial close, and ultimately, procurement and construction. However, ISA now had R200-million a year to help prepare projects that were deemed strategic, that had a potentially high gross domestic product impact, and that would contribute to South Africa's competitiveness. In the past four months the number of projects under preparation within ISA had reached 31. "These were historical projects that had failed to get funding from National Treasury in terms of Treasury's budget facility for infrastructure," said Masemola. "We are now preparing to package these projects." These projects included schools infrastructure programmes in the Northern Cape and the Eastern Cape, as well as four tertiary hospitals - two in Mpumalanga and two in the Free State. There also projects in South Africa's special economic zones. "Form ISA's side we are supporting these in terms of bulk infrastructure so that we can unlock investment in the top infrastructure," noted Masemola. ISA's main aim was to close the infrastructure investment gap. Masemola noted that there was a significant gap between the funding available through the fiscus and the number of projects that required investment. "R5.7-trillion is required to close the investment gap by 2050." She added that ISA was pivoting its pipeline to public-private partnerships (PPPs), as expressed by the Minister of Finance. The South African Infrastructure Fund (SAIF) was part of ISA. It was created to facilitate blended finance infrastructure projects. SAIF chief investment officer Mohale Rakgate noted at Sidssa 2024 that this fund had been working with project owners from various sectors of the economy to identify projects that lend themselves to blended finance. "In our context blended finance refers to projects that cannot become bankable without fiscal intervention - meaning the private sector will not be attracted to build and finance these projects. "Where we come in is to structure these projects so that we can mobilise funding from National Treasury, and, on the back of that funding, invite the private sector to participate. "To date we have mobilised R25-billion from Treasury. "With that we can now go out to market and mobilise R70-billion of investment to fund the projects we have. We are now ready to engage investors." Projects in an advanced stage of implementation included social housing projects in Newcastle and Midrand; bulk infrastructure supply for a 30 000-housing unit project in Johannesburg; water infrastructure projects in Limpopo and KwaZulu-Natal; and a project in partnership with the Department of Home Affairs to develop six ports of entry into South Africa to ensure efficiency in the movement of goods and people.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The South African Wind Energy Association's (SAWEA's) formal response to the draft Integrated Resource Plan 2023 (IRP 2023) questions both the modelling and assumptions used to determine the vastly diminished allocation for wind energy in the period to 2030 when compared with the prevailing plan. It will also call for an overhaul of the document, including its post-2030 Horizon Two, given the lack of transparency in the current version regarding the modelling constraints employed, as well as the embedded policy adjustments and their associated costs. The public comment period closes on March 23, having been extended by the Department of Mineral Resources and Energy (DMRE) from an initial date of February 23. CEO Niveshen Govender notes that, when compared with the prevailing IRP 2019, the allocation for new wind generation has fallen dramatically from 14.4 GW by 2030 to only 3 GW. "It's a huge reduction," Govender told Engineering News in an interview as SAWEA was putting the final touches to its written comments to the DMRE. "If you look at the energy mix of new generation capacity, wind has fallen from 37% to 19% and we are naturally concerned about how the modelling was done to arrive at such an outcome." Besides questioning the modelling, SAWEA is also highlighting the lack of alignment between the draft IRP 2023 and the costing used for wind, with the document unclear on how the Electric Power Research Institute and Lazard costing was applied and how these costs relate to prices achieved through various domestic procurement rounds. Likewise, the IRP 2023's "misalignment" with several other policy and industry plans that assume a far higher penetration of wind will be highlighted, including with the National Development Plan, Eskom's Transmission Development Plan and the Energy Action Plan. The absence of a "cost of scenarios" is also of concern, with Govender noting that this information was not contained either in the draft document itself, or in the supporting documentation released following its publication. "We really need to understand what the costs are, including if there is a higher cost to get to energy security sooner." The draft IRP 2023 assumes ongoing loadshedding until at least 2027 and indicates that the shortfall will be overcome only once there is 7 220 MW of new gas-to-power capacity built and operating at a "high utilisation factor". The fact that the IRP 2023 does not cater for system adequacy has been heavily criticised by several stakeholders, given that IRP's are primarily techno-economic models of what generation capacity should be maintained and built to match supply and demand. Govender stresses that SAWEA's members are not energy system specialists and will thus not comment in detail on the failure of the draft IRP 2023 to address loadshedding. "What we can point out, though, is the fact that the 3.4 GW of wind currently in the system is helping to reduce two stages of loadshedding almost daily and that more could have been done had the wind allocation in the IRP 2019 been built as intended." Instead, none of the wind allocated for public procurement between 2020 and 2030 has been built to date and there are concerns that the 3.2 GW allocated to the current Bid Window Seven (BW7) could go the same way as BW6, when none of the wind projects advanced to the preferred-bidder stage. "Although the curtailment addendum to the Grid Capacity Connection Assessment does unlock over 3 400 MW in the Western and Eastern Cape provinces, the scenario that arose during BW6 can only be avoided if it is coupled with Eskom's Gated Generator Connection Process, which is not the case currently," Govender highlighted.