Tag Archive | biomass

New biotechnology strategy on the way

Biotechnology and aspects of economy….

A new South African biotechnology strategy, with a focus on the economy and how biotechnology could be used to create a positive socio-economic impact would soon be launched, department of science and technology (DST) has said.

This has now been cleared by cabinet but very little is known on the actual document being prepared by DST other than it will focus on co-ordination between the various government departments dealing with biomass, bio technology, energy and the environment.

Creating jobs

On the subject of creating biofuels and biomass, the department of energy has told parliamentarians that the main objective of any such exercise, if it was undertaken in the agriculture industry, would be to create jobs.       However, such a move towards the use of biomass would not take place if national food or water security was jeapordised in any way.

This answer was given to the portfolio committee on energy by Muzi Mkhize, chief director hydrocarbons, department of energy (DOE), when briefing parliamentarians on DOE’s current strategy towards biofuels.  He said that in the South African context, a specific requirement of the biofuels strategy was to create a link between first and second economies and the focus was not only on jobs but specifically on creating employment in under-developed areas.

No document on the subject at this stage has reached Parliament.

Earlier articles on this subject:
http://parlyreportsa.co.za//energy/doe-talks-biofuels-and-biomass/
http://parlyreportsa.co.za//cabinetpresidential/biofuels-development-stays-in-limbo/
http://parlyreportsa.co.za//cabinetpresidential/energy-resources-doing-it-better-and-quickly/
http://parlyreportsa.co.za//energy/doe-talks-biofuels-and-biomass/

Posted in Enviro,Water, Facebook and Twitter, Fuel,oil,renewables, Land,Agriculture, LinkedIn, Special Recent Posts, Trade & Industry0 Comments

biofuels become mandatory

derek hanekomBio-fuels brought in by law……

In launching South Africa’s bio-economy strategy, following the failed 2001 national version, minister Derek Hanekom also failed to mention that the reason that no entrants had been incentivised to join to date was because the new strategy now makes it an imperative for fuel companies to buy bio manufacturers output.

The new framework document stated that regulations regarding the mandatory blending of biofuels with petrol and diesel “were among the tools deemed to be the most appropriate legal instrument to achieve the desired outcome”.

October 1 2015

Mandatory blending regulations, which were set to come into effect on October 1, 2015, would guarantee the uptake of all biofuels supplied by licensed biofuels manufacturers by compelling licensed manufacturers of petroleum products and their wholesaling arms to buy and blend all the biofuels made available by licensed biofuels manufacturers.

According to earlier reports, fuel producers would be required to blend a minimum of 5% biodiesel in diesel and between 2% and 10% of bio ethanol in petrol.    Meanwhile, the framework document said an appropriate Biofuels Pricing Framework had also been created by the DoE, in conjunction with National Treasury and other economic departments, to financially incentivise the production of biofuels.

Biodiesel manufacturers would be granted a 50% general fuel levy exemption and would be entitled to accelerated depreciation on their manufacturing facilities and other tax incentives.

Making up for the past

At the launch, Minister Hanekom said that the bio-economy strategy would take the previous strategy from 2001 to the next level, creating an “enabling environment that will allow government departments, industry, venture capital and other stakeholders to move forward with initiatives that will be able to meet the challenges and embrace the opportunities of the future”.

This science-based strategy which was approved by cabinet in November last year positions bio-innovation as an essential factor in achieving the industrial and social development goals of the New Development Plan (NDP).

sorghumAll departments involved

The strategy proposes that bio-innovation will become an integral part in the activities of a wide spectrum of government departments including health, environment, energy and rural development.

Regulations relating to the licensing of manufacturers of biofuels, as well as criteria for the eligibility for government support were also included in the document.

The new bio-economy strategy, the minister said, is aligned to the National Development Plan, which considers science, technology and innovation key to the South African developmental agenda, as advances in these fields underpin advances in the economy and in society.  It is expected by government that by 2030 biotechnology and bio-innovation will be making a “significant contribution to South Africa’s gross domestic product.

Previous articles on this subject
http://parlyreportsa.co.za//energy/doe-talks-biofuels-and-biomass/
http://parlyreportsa.co.za//cabinetpresidential/biofuels-development-stays-in-limbo/

Posted in Energy, Enviro,Water, Facebook and Twitter, Fuel,oil,renewables, Land,Agriculture, LinkedIn, Public utilities, Trade & Industry0 Comments

Integrated energy plan (IEP) around the corner

IEP a few months off

Benedict MartinsAn integrated energy plan (IEP) for South Africa covering the full energy spectrum will definitely be published before the year end, according to the director general, department of energy (DOE), a fact also confirmed by minister Ben Martins when addressing an energy conference in Johannesburg recently.

Ms Nellie Magubane, when addressing the relevant portfolio committee under chair, Sisi Njikelana who had called for an update on the energy plan, was accompanied by minister Ben Martins at the time and present for his first meeting in Parliament. The minister acknowledged and highlighted the importance of unfolding the plan as part of the country’s investment credentials as soon as possible.

Continuing energy story

Whilst re-confirming that the strategy was still at public participation stage, DG Magubane said there was “no end-state tomorrow” with the plan but rather a reflection of a “phased approach as the country’s appetite for energy as it  develops”.

The process began, she said, with the 1998 White Paper, the development of independent powers system operators (ISMO) and the accompanying ISMO Bill also awaiting the production of the IEP, the National Energy Act in 2008 and regulations on resources that have followed. The IEP this year would start the energy initiative rolling to be followed by gas development plans.

Not just supply factors

In the years since apartheid, said Magubane, when energy had different directives which were focused primarily on just maintaining supply, what had changed significantly were economic, environmental and social imperatives which now were being drawn in and superimposed. “The fixation with supply capacity is not now the only criteria to be considered in the energy paradigm”, she said.

The liquid fuels shortages of 2005 and subsequent electricity disruptions in the years up to 2008, Magubane said, had shown the need for coordinated planning to avoid disparate plans and contradictory initiatives in the sectors of electricity, liquid fuels and gas.

A twenty-year road map for the liquid fuels industry was in progress by the department, she said, and a gas planning infrastructure plan was to be developed once the extent of resources were better understood.

International view

Through time, and above all because of energy security, Magubane said, scenario planning has changed in South Africa to take in security, environmental and climate response factors. In conjunction to long-term climate change policy and agreements, lessons had been learnt from the IEA, Austria, Belgium, Canada, the Czech Republic, Italy, Japan, the Netherlands, Norway and Spain, she said.

When asked what had been learnt from a study tour of the USA, DG Magubane said that the primary aspect learnt there was the success of establishing localised energy resources, focusing on what mattered most to the USA and reducing dependence on imports. We learnt, for example, that we must not try a change the impossible or employ unrealistic factors but move according to what was a fact locally. “For example, South Africa has a lot of coal but little water and these factors have to be built in, not ignored.”

She said that the overseas studies where different economies and different state policies were involved, due note that the position had changed radically in South Africa had to be acknowledged, as had been the case in many of those countries.

Control of resources

“For example, government has come from a position where in SA we were determining the appropriate level of involvement with the liquid fuel levels industry during transition to a rapidly globalising picture, to now having to maintain a strategic role in shaping all key sectors of the economy.”

In response to queries from parliamentarians, she acknowledged that the IEP to be produced would not incorporate any powers to the minister, who “would rather be able to exercise any powers affecting energy matters through normal regulatory enforcement contained in the many pieces of legislation that applied to the energy sector, such as the Energy and Gas Acts.”

Pricing restructuring

On pricing issues as far as the IEP was concerned, Ms. Magubane responded to questions that national treasury figures had so far been the base of determinations but in the light that submissions and input from stakeholders which were to emerge from the process now in progress, the issue of price factors could in all probability be reshaped.

In answer to complaints that that there was still no indication from her, or DOE, where the country was going in hydrocarbons, electricity or renewables and what pricing factors were involved for urgent investment needs, the chair asked that DOE be given time to develop the final report or “everything would go in different directions”.

DG Magubane assured parliamentarians that the final plan would enable everybody to weigh up infrastructure plans with government policy, even bearing in mind that the position is constantly changing given such issues as hydro input from neighbours, gas exploration in various forms and global tensions.

previous articles on this subject
http://parlyreportsa.co.za//uncategorized/mineral-and-petroleum-development-bill-grabs-resources/
http://parlyreportsa.co.za//cabinetpresidential/president-obama-and-power-africa/
http://parlyreportsa.co.za//cabinetpresidential/nuclear-goes-ahead-maybe-strategic-partner/
http://parlyreportsa.co.za//energy/petrosa-has-high-hopes-with-the-chinese/

Posted in Electricity, Energy, Facebook and Twitter, Finance, economic, Fuel,oil,renewables, LinkedIn, Mining, beneficiation, Public utilities, Trade & Industry0 Comments

DOE spells out biofuels and biomass

Biomass, biofuels and jobs……

On the subject of creating biofuels and biomass, the department of energy told parliamentarians that the main objective of any such exercise, if it was undertaken in the agriculture industry, would be to create jobs.       However, such a move towards the use of biomass would not take place if national food or water security was jeapordised in any way.

This answer was given to the portfolio committee on energy by Muzi Mkhize, chief director hydrocarbons, department of energy (DOE), when briefing parliamentarians on DOE’s current strategy towards biofuels.  He said that in the South African context, a specific requirement of the biofuels strategy was to create a link between first and second economies and the focus was not only on jobs but specifically on creating employment in under-developed areas.

Key incentives

Bio-fuels, he said, like most renewables, required incentives in order to be cost-competitive against conventional fuels, the upside of such a direction being the saving in balance of payments, energy supply security and economic growth factors that were more stable that the volatile traditional oil market.

He referred to 2006 estimates, where a targeted 2% biofuels scenario was estimated to create about 25,000 jobs.

With the IPP third round completed, Mkhize said biofuels would contribute to the national renewable energy policy, the director general, DOE, having already advised that 93 independent power producers (IPPs) had applied for licences in the third round of requests for submissions. Thus biomass, he said, together with IPPs were contributing greatly towards targets that South Africa had in the journey to reduce greenhouse gas emissions.

As far as biofuels manufacturing facilities were concerned, Mkhize listed eight locations where bioethanol or biodiesel had or were being licensed. He said that biodiesel would fall within the fuel tax net and manufacturers would receive a rebate of 50%. Bioethanol would not, however.

Incentives upgrade

As was the case with all renewable energy projects, a 50:30:20 depreciation allowance on capital investment over three years would apply but DOE had started discussions which were underway to improve incentives as this was not sufficient to attract investors, it was felt.

“Infant industry” incentives over a twenty-year benchmark period were being looked at, he said, with an initial incentive of 3.5c per litre to 4c, to be recovered through a levy to be included in the national monthly price determinations.

Overproduction threat

It was pointed out by parliamentarians that about 229 million litres of fuel were sold annually for about R9,2bn and if all players in the fuel industry joined the process as required, there would be an excess with about 4-6% of biofuels produced over the national call for 2%. Who would take up the excess, they asked.

Mkhize was also asked what agro studies had been done and how were farmers responding to a possible call for biomass crops. Also, they asked, if there was drought or some similar disaster, what would happen to the fuel industry in the reverse case of a shortage of biomass.

Mkhize said there was a general agreement in place only on agricultural biomass and this was “only in the form of mindset until pricing and subsidy issues were finalised, so accordingly the question of national quantities in relation to fuel company needs did not arise”.  However, he confirmed that the fuel industry would not be allowed to suffer from a shortage of biomass delivered.

Treasury and subsidies

In answer to more questions, Mkhize said a licence to produce biomass would not disallow a farmer from switching crops, say from soya to maize.  But, he added, all this was total speculation until “national treasury came up with the answers on subsidies”.

When MPs complained that the picture given by DOE “was no more than a snapshot of where we were on biofuels exactly one year ago”, Mkhize said he was trying to show the milestones that had been reached in the enormously difficult stage that the fuels industry had reached with regard to the entry of biofuels, which was a strategic issue.

Gas the issue

He said there were issues such as LPG remaining the forerunner of natural gas to be investigated as this household market had to expand and added, “We are looking at the system used commercially of bringing gas from Mozambique to Durban and whether this is the basis for further development.”

Mkhize promised his department would deliver shortly on promises to deliver DOE’s plan for gas expansion but this was not part of the biofuels or biomass study. All such matters were intertwined in terms of the integrated resources plan with the eventual integrated energy plan for the whole country.

Making a profit

On new entrants to biomass to fuel production, Mkhize responded to questions that it had been shown that the breakeven point for any biomass plant was a constantly changing factor over a long period and it was difficult to establish at what point a subsidy of, say, 2% would assist.

He said breakeven studies showed from a 2% profit, moving down to 5% loss for a long while, and then eventually moving up to 10% profit had been the standard established and banks did not like that kind of venture. Models he said were difficult to establish that were both profitable in either the short or long term.

There had been great disappointment when oilcake made from soya had proven too costly for biodiesel and it had been found that better recoveries could made through the food industry. This had proved a setback, Mkhize said.

Sugar cane

In answer to queries on sugar cane possibilities for biomass, as practised in Brazil and possible land shortages in South Africa, Mkhize said that the SA Sugar Assoc had said that land was available but that sugar cane was more likely to be linked to co-generation of electricity energy. Brazil, he said, had a vast subsidized lower income biomass agricultural industry but was producing on a large scale for biodiesel, not bioethanol as would be required in SA.

Mkhize concluded that the DOE biofuels task team was studying very carefully the forward national food security and water situation, “because”, he said, “we cannot afford to subsidize an industry in the form of small scale farmers if we are at the same time threatening food security and water availability at the same time.”

Back to jobs

However, he said that the country at the moment could not ignore the huge potential for job creation that could be brought about by such a new industry and the present lack of agricultural knowledge on the subject would eventually be substituted by experience gained by the new entrants as they established themselves.

In answer to questions on where blending would take place and “whether this was upstream or downstream in the fuel industry”, meaning at refineries or at depots it was assumed, Mkhize said a lot would depend on where the crop was grown; the wish to support crops grown in rural areas; sustainable projects that had been developed; and water availability.

previous articles on this subject
http://parlyreportsa.co.za//cabinetpresidential/biofuels-development-stays-in-limbo/
http://parlyreportsa.co.za//energy/south-africa-at-energy-crossroadsdoe-speaks-out/
http://parlyreportsa.co.za//energy/ipp-3-delayed-until-mid-august-says-doe/

Posted in Energy, Facebook and Twitter, Land,Agriculture, LinkedIn, Trade & Industry0 Comments

Illegal diesel coming in from Mozambique

DOE working with customs……

Department of energy (DoE), admitted to the portfolio committee on energy that they knew of illegal diesel fuel imports emanating from Mozambique and that the department was working with customs and excise officials to track down culprits. DoE was reporting on its third and fourth quarter performance figures.

DoE confirmed that in many cases tanker transport was being used and in most instances the fuel itself was sub-standard, sometimes being a mixture of diesel and other fuels such as paraffin. Most of the fuel was being offered to farmers at cheap rates.

The subject arose when Mr L Malaudzi, acting chief operating officer, was outlining to members many of the issues involved in DoE’s programmes on governance and compliance. He explained the department’s inability to hold a planned anti-fraud workshop due to time constraints and other more pressing issues but promised that such a workshop would be conducted in the first quarter of 2013/4 and he would call stakeholders.

Focus point Mpumalanga

Questions arose from opposition members that fuel was being offered for sale in some areas of Mpumalanga from such sources. Tseliso Maqubela, deputy director general, confirmed that DoE was aware of such incidents and that the department of customs and excise had many problems with goods passing through this “porous border” nearby and that cheap and sometimes “dirty” fuels were on the list of issues.

Maqubela confirmed in his report to parliamentarians on petroleum regulations during the final quarter of 2012/3, that 92 site inspections over and above the target of 1500 sites had been completed but that no fuel sample testing was conducted due to a lack of budget for this function. This subject was to be deferred to next year, he said.

No budget to investigate

In discussing fuel specifications generally, Maqubela confirmed that DoE would “speak to industries to see if we can re-prioritise the matter”. He did not elaborate on this as to whether he was talking about capital projects or fuel mixes generally. He said, however, that on border transfers, particularly by road, had to be investigated and a budget of R50m had been requested next year from the fiscus to follow up on this. At the moment, only diesel imports were being followed up in investigations, such investigations also being limited.

On fuel pricing generally, he said that a desk top study on basic fuel pricing (BFP) was being undertaken, the stakeholder discussion portion of the study having been completed in March of this year.   BFP was a major issue nationally at the moment, he said, as were various items that went to make up its structure. He hoped that most of the issues would be resolved with stakeholders towards the end of this year.

Crude oil priorities

On existing crude oil matters, Saldanha, Milnerton and Durban were the current priority areas at the moment for infrastructure development, he said, and whereas before 28% of crude imports came from Iran, he said, “We haven forced to diversify which is exciting because it introduces the issue of African trade”.

The US is now producing considerable quantities of light crude which again has reversed trends and “there is an opportunity for Africa, particularly Angola and Nigeria, to deal with us and take up slack.”

Clean energy savings

On clean energy issues, Ompi Aphane, deputy director general, said that that so far major savings in terms of the municipal energy saving plan had been recorded with fifteen of the twenty eight participants in the DoE programme having registered savings, which Aphane said had translated into some R37m a year and 31,000MWh to the national grid.

However, he reported that the intended strategy plans for biomass, biogas and biofuels had got nowhere and DoE were looking at taking away from SANEDI the responsibility for this undertaking.

Posted in Fuel,oil,renewables, Justice, constitutional, Public utilities, Trade & Industry, Transport0 Comments

Carbon Capture Storage Technology Underway in SA

SANEDI, the South African Energy Development Institute, told the portfolio committee on energy that work was being conducted on extraction of carbon dioxide from fossil usage and pilot drilling was taking place near Port Elizabeth on the geological storage of carbon dioxide at great depth.

Dr (Prof) AD Surridge of SANEIRI, the research body of SANEDI, said that in common with other countries and backed by the department of energy, Sasol, PetroSA, Eskom, the UK and Norwegian governments, Total, Anglo Coal, Xstrata, Exxaro and others, carbon capture storage as a system was a real possibility in South Africa.

This inland location for tests had been chosen for reasons of cost, but vast suitable geological areas had been located offshore in South Africa where storage for many hundreds of thousands of years would be safe.

Dr Surridge said, “It is not so much as to whether the technology works. We know it works”, he said. “Such has been operating at global sites for many years. It’s a question of scaling up the finance and doing things on a far bigger scale to get ahead”.

SANEDI operates as part of the Central Energy Fund (CEF) which also manages the operation and development of the oil and gas assets and operations of the South African government with its subsidiary, PetroSA. A CEF subsidiary, iGas acts is involved in the development of LN gas and LP gas.

Kevin Nassiep, CEO of the operating research body SANERI, told parliamentarians that in financing its various operational scenarios to conduct energy research across all aspects of energy in South Africa, it had submitted four financial models to Treasury varying from models to develop the institute as an independent entity with a full programme of projects, a model with gradual transition over a number of years to that of SANEDI in a survival mode.

He said that the fourth option had been chosen by Treasury in its budget and consequently SANEDI was just surviving. SANERI was operating at very low level insofar as its objectives were concerned and “the two building blocks of sustainable energy solutions to South Africa’s search for a low carbon economy, that of innovation research and energy conservation, were being undertaken at slow speed.”

SANEDI’s brief in terms of the National Energy Act was to direct, monitor and conduct energy research and promote energy efficiency through SANERI, Nassiep said. Their goals were to be in direct support of the department of energy (DOE) role and DOE’s energy policy, and to assist in all matters regarding climate mitigation.

He said that that in most matters regarding radical energy decisions, South Africa in each major topic had to decide whether to become an “innovator” by becoming a leader in that field; whether to be an “adaptor” and take existing standard prototypes and change these to suit South African systems or be a “follower” and simply “buy off the shelf” in order to meet cost restraints or because such suited the occasion.

Dr Willie de Beer, dealing with electricity energy distribution matters for SANEDI, said that with the collapse of the centralised electrical distribution concept known as EDI holdings there was a resurgence of suppliers pushing their own proprietary systems in the search for a better and “smarter” national supply grid. Consequently, conformity was a problem unless it was controlled.

Lack of funding in all aspects of the work being undertaken by the research body, SANERI, appeared to be the issue, Parliament was told.

Dr de Beer told parliamentarians that urgent decisions had to be taken in this regard to underpin economic growth and an inter government smart grid task group with a smart task team financed properly so that “plug and play” commonalised systems were adopted and a lead given by a common government “voice”.

But, he said, the “smart grid” was not emerging quickly enough because there were too many players and nobody was either prepared to invest properly or take risk. There was little in the way of team approach, he said, and intergovernmental participation across the board had not been achieved.

David Mahuma of SANERI described a number of biomass projects either converting energy from invasive alien plant life; biogas projects working in agricultural situations and mini-hydro schemes currently being investigated. This was all part of the “Working for Energy programme”, he said, and current focus was to help communities with pelletised bio-mass waste systems.

SANERI described to parliamentarians a number of projects including LPG driven taxis, which were succeeding in KwaZulu-Natal and a biomass piggery plant in Mpumalanga that was providing its own electrical energy needs and some to spare for the local grid.

 

 

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First round of IPP producers named for grid supplies

In the first round of allocation of bidders in terms of the department of energy (DOE) renewable energy allocation procurement programme, 39% of the allocated 3625MW for independent power producers has been decided upon.

Parliamentarians were told that the number of “passing bids” was 66.5% of those submitted, resulting in a total capacity of 1415 MW of the 3725MW to be procured being taken up at this stage.

By far the greatest number of projects was solar energy projects, either solar voltaic or solar CSP, with slightly over 30% being wind projects. Twenty eight projects in all were found to be acceptable.

No biomass, biogas, landfill or small hydro projects were submitted in this round, or “window” as it is referred to by DOE.     All projects decided as acceptable were from Eastern, Western and Northern Cape. In all some 68 applications were received.

Ompi Aphane, acting deputy director, DOE, told the portfolio committee of energy that small 100MW projects would be handled separately, the original procurement documents for the bidders for larger scale projects having been released during August 2011 and the compulsory bidders conference held in September for these and for the second window now to be considered.

All documents have been treated as confidential by all parties and are still treated as such in view of the fact that the process is ongoing.

Evaluation of projects on the issue of land rights where, Aphane said, South African law “was antiquated and not clear”, have and might give difficulties. The same applied to municipal issues insofar as relationships and responsibility might be concerned, he said.

On the whole such issues would be the concern of the supplier to sort out but it had to be remembered, Aphane said, that at the same time all such problems were “everybody’s problems and it would serve South Africa best to sort them out at every level.”

On land matters as well, there might be problems in agricultural areas concerning projects that involved good arable farming land but very little in the way of problems were land was fallow had arisen so far or had been pointed out by the evaluators. Registration of leases or proof of land use application had to be shown in submissions.

Commercial legal issues, economic development priorities, financial oversight and technical issues had all been studied and a large evaluation team made up of international legal experts, well known local legal evaluation teams and technical consultants had been assembled. Financial evaluation had been undertaken by Ernst and Young and PricewaterhouseCoopers.

Under questioning by parliamentarians it became evident that all competitors had to be at least 40% South African owned. When asked if there were any landfill, biogas, and biomass projects that had become evident in early bidding under the second window period, Aphane said that such had not arisen at all, nor were they expected to be, mainly because they would be of a minor nature insofar as they would fall under projects providing 100MW or less.

Hydro projects had not arisen. He also commented that projects emanating from “fossilisation processes” were disallowed.

On whether the same extended and expensive evaluation process would be applied to the second and third round of bidding, Aphane said that “DOE had learnt much from the processes applied in the first round” and that the ground rules established by both experts, consultants and official bodies could be applied henceforth.

Questions on final pricing per unit of electricity arose and deputy director general Aphane said that this could not be discussed at this stage for reasons of security but in his mind as the bidding progressed he would expect to see the final price dropping.

DOE was working itself on a figure of something in the region of “R2.75 to R2.80 a unit” before bidding opened. This may go down, he said, but the final price had to apply to all involved in all bids.

Aphane confirmed in answer to questions that the “position with regard to legal difficulties on the licensing of independent operators with NERSA, the national energy regulator, had been resolved”.

Further questioning from parliamentarians resulted in Aphane confirming that the current IPP energy exercise was not in any way connected to the South African government overseas investment exercise with foreign companies on energy renewables, known as SARi.

On finance, once all bidding was completed, the three windows were closed and the final results were known and contracts granted, Aphane said, DOE was particularly aware of the problem of a sudden importation into South Africa of a large quantity of equipment from overseas and the effect this might have upon the rand.   Steps were in hand to counter this, probably by phasing in start dates.

Final questioning came from parliamentarians on the issue of land once again, particularly when the issue of litigation by present land owners arose either on matters of expropriation or proximity.

Aphane said that DOE could not be involved in such matters, which were the supplier’s problem.  However, broadly speaking, if any such problem arose in terms of it becoming a national problem, it would then naturally become a “South African problem as a whole” and this would have to be dealt with. DOE would monitor the situation.

The exercise regarding the “whole question of smaller 100MW or less, self-sustaining and possible minor contributions to the national grid” would be studied at a later date, he said.

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