South Africa’s first private coal power station bidders announced

JStrike

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#2
Very exciting times.
The government is managing to rapidly privatize electricity generation in South Africa without actually using the word 'privitise' which would cause a heart attack with the trade unions.
 

HBee

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#3
Nice of the minister to inform the IPP of their obsolescence before they even get started.
 

JStrike

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#4
Nice of the minister to inform the IPP of their obsolescence before they even get started.
Inform them? You think they don't know that coal power will eventually be replaced as the primary source of energy, but in the meantime it still has a vital role to play?
I'm fairly sure they're aware of this and have been for quite some time.
 

HBee

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#7
If they do not get proper return on investment, and run the plant profitably for the minimum 20 year lifespan of the plant why even bother. Why also bother if cheaper energy sources will threaten their viability?
 

f2wohf

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#9
It's basically the Exxaro and the Anglo American projects that were pretty much the only ones to be presentable for an IPP. There's always been suspicions that the IPP coal programme was actually being designed on purpose for them and almost all the other contenders that I know of gave up fairly quickly.
 

f2wohf

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#10
Why we are getting more coal instead of solar is beyond me
So when there are clouds or it rains, you're willing to be without a heater and without lights ? We need coal to replace to old power plants that 40/50 years and will have to be decommissioned soon.

Solar is a part of the energy mix but can only be at this stage a small portion of it. Solar is also expensive, the last IPPs for solar were at prices way higher than the coal ones.
 

Petec

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#11
Pound for pound, energy from coal is still king for the next 30 - 50 years. This is well documented.

However, what does peeve me off, is that a percentage of this revenue, should go into a fund managed account, to grow and grow, and then be used to research and replace coal/nuclear etc systems, as well as subsidize "green" technologies. This is the stumbling block. This is a 40 to 100 year plan with a good few generations carrying the torch forward.

At our current human level of not thinking and not doing more than a week in advance, I am super saddened.
 

system32

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#12
Pound for pound, energy from coal is still king for the next 30 - 50 years. This is well documented.

However, what does peeve me off, is that a percentage of this revenue, should go into a fund managed account, to grow and grow, and then be used to research and replace coal/nuclear etc systems, as well as subsidize "green" technologies. This is the stumbling block. This is a 40 to 100 year plan with a good few generations carrying the torch forward.

At our current human level of not thinking and not doing more than a week in advance, I am super saddened.
I think you're somewhat behind the times in terms of renewables.
Renewables are cheaper and much quicker to market.

Let me fix that for you "Pound for pound, energy from coal is still king of pollution for the next 30 - 50 years. This is well documented."
 

Gordon_R

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#13
Sounds like financing and environmental concerns may end up pulling the plug on coal-fired IPPs:
https://www.dailymaverick.co.za/art...o-new-coal-ipps-in-south-africa-under-threat/

In the latest development, it has been reliably learned that last week Standard Bank advised the director general of the South African Department of Energy (DoE), Thabani Zulu, of the bank’s new policy position to stop funding the construction of any new coal-fired power plants, in line with new Organisation for Economic Co-operation and Development (OECD) country protocols.
Credible high court challenges (reviews of the environmental authorisations) are under way, and atmospheric emission licences, water-use licences, and generation licences for both projects are either outstanding or being challenged.

While Standard Bank is not the only financier of the planned Thabametsi and Khanyisa IPP projects, the big fear by the DoE and the developers is that if Standard Bank pulls its funding, the other South African banks, including Nedbank, ABSA and FirstRand may follow suit, putting both projects at further risk of ever reaching financial closure.
 

Johnatan56

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#14
So when there are clouds or it rains, you're willing to be without a heater and without lights ? We need coal to replace to old power plants that 40/50 years and will have to be decommissioned soon.

Solar is a part of the energy mix but can only be at this stage a small portion of it. Solar is also expensive, the last IPPs for solar were at prices way higher than the coal ones.
Solar is about 10-25% as efficient with overcast/rain, and do note rain will clean the panels so it can increase the effectiveness.
Based on Lazard 2017: https://en.wikipedia.org/wiki/Cost_of_electricity_by_source#Lazard_(2017)

Generation Type Low ($/MWh) High ($/MWh)
Solar PV - Crystalline Utility Scale 46 53
Solar PV - Thin Film Utility Scale 43 48
Coal 60 143

Best-case you can build 1.5x solar per coal, worst case you can build 3 solar panels.
At that 25% efficiency mark, it's perfectly fine to build it, do take into account you build those solar panels in the right places, e.g. Kalahi rains are Feb-April, rest of the year has very little rain, so no problem with winter impact. Lazard is also average across a multitude of projects around the world, South Africa will have better solar generation than most northern countries that heavily invest in this.
And take into account that renewable isn't only solar, but also wind and that both of those renewable techs are dropping in price.
The new Lazard report should come out soon.

And I agree with you, for now we need coal for that base load overnight, evenings wind usually picks up so that is its most optimum time. You could also use CSP for overnight, that's also dropping in price substantially.
 

Gordon_R

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#17
Financing for coal-powered IPPs is becoming a hot-potato: https://www.dailymaverick.co.za/article/2019-01-30-nedbank-withdraws-funding-for-new-coal-ipps/

It is possible that the Chinese will offer to fill the gap resulting from Nedbank and Standard Bank’s withdrawal of funding for the two new coal-fired power plants, and if they do, it will be especially interesting to see what the terms and conditions of such alternative funding would entail.

South Africa, as a signatory to the United Nations Framework Convention on Climate Change’s Paris Agreement, is duty-bound to reduce its reliance on coal for electricity generation and to close at least the five worst offending emitters of particulates and toxic gases in Eskom’s fleet of coal-fired power stations as soon as possible.

One wonders if the decision by two of the country’s biggest banks to decline to fund new coal-fired electricity generation might cause the DoE to remove the two new coal-fired power plants from the Draft IRP 2018, which is still to be promulgated.
 
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