14 June 2013

South Africa: Energy Committee Welcomes Government-Private Sector Partnerships

press release

This week the Portfolio Committee on Energy received presentations from Eskom and Nissan South Africa (SA) on the three-year research project to test the Nissan Leaf Electric Vehicles (EV), and from the Industrial Development Corporation (IDC) and the SA Calcium Carbide (SACC) on the co-generation plant in Newcastle.

The Committee welcomes the initiative by government to work with the private sector. "Such programmes are indeed applauded as they display seriousness to address the challenges of energy, including exploring solutions towards clean energy through a public private partnership," said Chairperson for the Committee Mr Sisa Njikelana.

The SACC co-generation project is valued at R105 million is financed by IDC. The project generates electricity from waste gas (which is carbon monoxide). The results are that the project produced 8MW of electricity, which equates to 20% savings of the SACC's electricity consumption and 10% of Newcastle Municipality electricity generation. SACC uses 50% electricity that is generated by the municipality.

Another feature of the co-generation plant is that it is currently being registered with the United Nations Framework Convention on Climate Change as a clean development mechanism initiative as it will save 35 000 tons of carbon dioxide emissions a year. As a result of the briefing, the Committee has decided to hold public hearings on co-generation in the third term (of Parliament).

The Committee also expressed interest in what incentives the government has for similar initiatives because experts claim that 3500MW of electricity can be generated through co-generation of electricity from waste heat fuel thus making the relevant industry more efficient in reducing electricity costs.

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Issued by: Parliament of South Africa

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