Finance and Policy

ESI Africa is a provider of daily electricity news. Our coverage includes Africa investment news as well as energy regulation and energy funds.

Nigeria signs MoU with Daewoo to facilitate 10,000 MW

[img:Barth_0.jpg|Professor Bart
Nnaji, Minister of
Power, Nigeria
]10 July 2012 - The government of Nigeria has signed the latest in a series of Memoranda of Understanding (MoUs) with major international electrical companies, to facilitate the production of 10,000 MW of power in the country. In early July it signed a MoU with South Korean company Daewoo Engineering and Construction Company, which in addition to agreeing to facilitate the production of 10,000 MW in Nigeria has undertaken to provide 20% equity in the various projects identified under the scheme.

Volatile prices predicted in the emissions market

[img:penny.thumbnail.jpg| ]9 July 2012 - Price volatility will become a key characteristic of carbon, as its price becomes ever more difficult to forecast accurately, says energy expert GlobalData. Its report on the topic says that the current European sovereign debt crisis has drastically reduced carbon demand, and hence its price in the trading market has also seen a steep decline.

Tanzania diversifying away from hydro

[img:sospeter.thumbnail.jpg|Sospeter Muhongo,
Minister of Energy
and Minerals, Tanzania
]9 July 2012 - Tanzania’s minister of energy and minerals, Sospeter Muhongo, says that regular droughts have necessitated a shift in government policy. "We are committed to changing our dependency on a single source of electricity, which is hydro, that generates 561 MW or 41% of the total supplied to the national grid,” he said at the inauguration of a 105 MW gas power plant at Ubungo in Dar es Salaam.

Eskom looks for longer more predictable tariff timeframe

[img:Eskom_0.jpg| ]5 July 2012 - Eskom is to apply to the National Energy Regulator of South Africa (Nersa) for the third multi-year price determination (MYPD 3), which will set out electricity prices for the period which begins on 1st of April 2013. The second multi-year price determination (MYPD2) expires at the end of March 2013.

Eskom initiated the process in June 2012 when it submitted a draft of its proposed MYPD 3 application to the SA local government association and the national treasury for comment, in compliance with the requirements of the municipal financial management act (MFMA). The Act requires that organised local government and the national treasury must be given 40 days in which to comment on the application and that their inputs must be taken into account in the final application which is submitted to Nersa.

Lapses in Ghana electricity sector due to political appointees

4 July 2012 - Ghana Broadcasting Corporation reports that a senior energy expert at the World Bank Ghana Office, Sunil Mathrami, has attributed the lapses in Ghana's electricity sector to political interference.

Small-scale renewable energy funded through Eskom’s Standard Offer programme

[img:Report%20d_0.jpg| ]3 July 2012 - Small-scale renewable energy solutions, produced from zero or low carbon source technologies and derived from naturally regenerative or practically inexhaustible resources, are the latest addition to the list of energy efficient technologies funded through Eskom’s Standard Offer programme in South Africa.

Introduced in consultation with the National Energy Regulator of South Africa (Nersa) as a pilot project with total capacity achieved during this phase limited to 10 MW, small-scale renewable energy solutions allow Eskom to further broaden the scope of optimal energy usage in South Africa through its range of energy efficiency rebate programmes

South Africa extends power funding deadline on logistics

[img:Power%20SA.thumbnail.JPG| ]26 June 2012 - South Africa extended the June 30 deadline by which wind and solar power-plant developers have to conclude funding arrangements by two weeks.

“It’s mainly because of some logistical issues on the government side,” Ompi Aphane, a deputy director general in the Department of Energy, said by mobile phone from Pretoria today. “One of those would be the regulatory approvals.”

M&A activity in the renewable energy sector set to increase

[img:Report%20d_0.jpg| ]25 June 2012 - The renewable energy space is expected to see a high level of M&A activity in the next 12 months despite changes to government incentive schemes in Europe and regulatory uncertainty in the United States, according to the third edition of M&A in Renewable Energy – Global Outlook 2012.

The wind and photovoltaic (PV) subsectors are expected to experience the most significant M&A activity and respondents, drawn from 100 renewable energy M&A professionals in the corporate, investment banking and private equity communities, believe both wind and PV will achieve grid parity as early as 2015 or 2016 in Germany, Italy and Spain.

EU greenhouse emissions increased in 2010

[img:Cancun%20-%20Pic%201_0.jpg| ]20 June 2012 - Greenhouse gas emissions increased in 2010 in the Euro zone, as a result of both economic recovery in many countries after the 2009 recession and a colder winter. Nonetheless, emissions growth was somewhat contained by continued strong growth in renewable energy sources. Figures from the greenhouse gas inventory published by the European Environment Agency (EEA) today confirm earlier EEA estimates.

Greenhouse gas (GHG) emissions of the 27 member states of the European Union (EU-27) increased by 2.4 % (or 111 million tonnes CO2 equivalent) between 2009 and 2010. This can be partially explained by the fact that there was a sharp 7.3% (or -365 million tonnes) decrease of emissions between 2008 and 2009.

The EU remains fully on track to meet its Kyoto target. The long-term reduction trend continued, since EU-27 greenhouse gas emissions still remained 15.4 % below 1990 levels in 2010. Emissions in the 15 member states with a common commitment under the Kyoto Protocol (EU-15) in 2010 were 11 % below the Kyoto Protocol base year. These consolidated figures confirm earlier estimates for the EU, published by the EEA in October 2011.

“Emissions increased in 2010. This rebound effect was expected as most of Europe came out of recession,” EEA executive director Jacqueline McGlade says. “However, the increase could have been even higher without the fast expansion of renewable energy generation in the EU.”

GHG emissions growth was contained by several factors. As in previous years the growth in the use of renewable energy sources continued in 2010 with a 12.7% increase of total consumption of energy from renewable sources. In addition, gas prices fell markedly in 2010 and EU total consumption of gas used for energy purposes went up by 7.4%. The higher share of gas led to an improved carbon intensity of fossil fuel consumption in many member states.

Among the greenhouse gases reported to the United Nations Framework Convention for Climate Change (UNFCCC), carbon dioxide (CO2) accounted for the largest increase in emissions in 2010. The gas represented 82 % of total EU GHG emissions. Industry emissions of hydroflourocarbons (HFCs), extremely potent GHGs, grew significantly in 2010, continuing the upward trend observed since 1990. Methane (8.6 % of total EU GHG emissions in CO2 equivalent) and nitrous oxide (7.2 %) declined. Germany, Poland and the United Kingdom accounted for 56% of the EU’s total net increase in GHG emissions. The relative growth in emissions was highest in Estonia, Finland, Sweden and Latvia. Spain, Greece and Portugal again reported lower GHG emissions in 2010.

Euro carbon emission reduction plans to boost biopellet energy market

[img:CO2_0.jpg| ]18 June 2012 - Europe’s goal to reduce carbon emissions will ensure a substantial increase in biopellet consumption and create a surge in the global market value, energy expert GlobalData predicts. The global biopellet market value, which stood at US$3,894 million in 2011, will climb at a compound annual growth rate (CAGR) of 15.7% to reach an estimated US$14,530 million by 2020.

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