Organizers of The South African Gas Options meeting hope to replicate last year’s success
In an attempt to resolve the existing energy crisis faced by the country, in 2015 South Africa held an event to launch an ambitious program designed to both standardize the process of gas procurement, and to dramatically increase the growth of the sector. The event was attended by over 300 people and Tina Joemat-Pettersson, the Minister of Energy was one of the key note speakers.
Following 12 months of increasing international interest in the programs initiatives, the 2nd meeting is due to take place in Cape Town on October 3rd, 4th and 5th, 2016. For the second year running the event will be supported by both the Department of Energy and the Independent Power Producer office (IPP).
The emphasis of this year’s meeting is to focus on the successful transition from the Project Information Memorandum (PIM) to the Request for Qualification (RFQ), which in turn will lead to significant change and growth in the gas-to-power sector in South Africa.
The mission is to transform the energy sector in South Africa to ensure an affordable, sustainable and secure supply of energy. The Minster of Energy Tina Joemat-Pettersson said, “The next five years is about moving South Africa forward toward an energy secure future.”. She went on to say that whilst some great progress has been made in some areas, all regulations and polices must be reviewed in order to guarantee the energy sector can support the country and therefore ensure economic growth in the future.
High levels of interest in last year’s event have ensured sufficient demand for this year’s upcoming event, with scheduled contributions from not only the government and the IPP, but also national banks, investors and gas and power developers.
Simon Gosling from EnergyNet said, “It’s exciting that the companies who attended last year’s meeting have remained in close contact with the government, who continue to absorb knowledge to guarantee this program is delivered as effectively as the REIPPPP.” (Renewable Energy Independent Power Producer Procurement Program).
The six key topics being spoken about are:
- Regional Integration
- Converting existing power plants
- Distribution and Communication
- The source and level of expected investment
An increased level of regional cooperation in long term gas to power development, as well as the construction and updating of the current cross-border infrastructure, are seen as an essential part of the program in order to ensure success.
Progress to date
Interest in the development of a 600MW gas-fired power plant is still growing as discussions between state-owned companies and their possible strategic partners continue. This development is planned to run side by side with the existing Project Information memorandum (PIM) 3,126MW gas-to-power program, further details of which are expected to be announced during Octobers meeting.