Keith Gottschalk | University of the Western Cape
&nbsp;
South Africa’s nuclear build programme seems to be back on the agenda after earlier indications that it was dead. Recent comments by President Jacob Zuma and his new minister of energy David Mahlobo, signal a final push to bag the nuclear deal while Zuma is still in power. In December Zuma’s term as president of the African National Congress will come to an end when the ruling party elects a new leadership. His term as president of the country ends in 2019. The Conversation Africa’s Business and Economy Editor, Sibonelo Radebe, asked Keith Gottschalk to assess the situation.
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Is it still possible for the Zuma administration to bag the nuclear energy programme?
The worsening financial plight of the state and its parastatals makes the estimated R1 trillion rand cost of the proposed nuclear build programme increasingly unaffordable. The new Finance Minister Malusi Gigaba said as much. Slow economic activity is squeezing the tax revenue base while social expenditure demands keep rising. This has caused the deficit indicators to rise a cause for serious concern. Its ludicrous for government to insist on adding the humongous nuclear build programme into such dire state of public finances.
It’s also important to consider that government’s atomic ambitions go far beyond the 9 600 MW of extra nuclear power stations. It also wants to rebuild a uranium enrichment plant that dates back to former apartheid-era President PW Botha in the 1980’s. South Africa gave up its nuclear capability in 1989. It was the only country in Africa that had the ability to make a nuclear bomb.
Zuma’s administration wants to regain some of the lost nuclear capacity. It wants to construct a fuel element fabrication factory. It has talked of a nuclear fuel reprocessing plant. All these also bear steep price tags.
What can stop it?
It’s been reported that Mahlobo, the former state security minister turned energy minister, wants to rush through the new process of guiding the nuclear energy plan into fruition. So it’s not going to be easy to stop it.
But South Africa’s nuclear ambitions face stiff opposition from different directions. These include environmentalist critics of nuclear power generation who use a blend of media, street theatre, objections at public consultation processes, and lawfare to try and stop the government’s ambitions.
The SA Faith Community Environmental Initiative group won an important victory earlier this year when the Cape High Court ruled that the government had not followed due process in its nuclear energy plans, and that they had to be halted. This effectively sent government back to square one.
Opposition parties have also been active, using parliamentary channels. They’re also considering taking the legal route to halt the nuclear juggernaut.
And there is palpable opposition within the ANC itself. A number of ANC branches sent motions critical of the costs of nuclear electricity to the ANC’s National Policy Conference. That conference’s report censored out all these motions.
The administration seems to be pulling out all the stops to bag this programme: What’s at stake?
By now, scandal-weary South Africans will react by saying: follow the money. In December 2016 the government dropped the bombshell that the procurement of its nuclear build programme would be taken away from the department of energy and done instead through Eskom.
The reason became clear when months of media headlines revealed that Eskom’s procurement mechanisms had been infiltrated and subverted by the Gupta family conglomerate to become a corporate feeding trough. With close ties to Zuma the Guptas stand accused of operating an elaborate mission to capture state business with a keen eye on the nuclear energy build programme
Every nuclear build contract, from “consulting” to turbines, would be inflated by one-fifth to build in the kickbacks to the corrupt middlemen tenderpreneurs.
Does South Africa need nuclear energy at this stage?
South Africa does not need nuclear energy at any stage.
About a decade ago, the government argued that South Africa’s economic growth was 5% per year every year, and that the resultant increase in electricity demand necessitated building 9 600 MW of new nuclear power stations. Critics pointed out that these figures were inaccurate.
Economic growth has shrunk significantly since then together with future projections of electricity demand. But the government still insist that the 9 600 MW of nuclear power proposition is backed by economic fundamentals. Clearly, this is a political decision uncoupled from economic realities.
On top of this, the most cost-effective generation of electricity would be a blend of imported hydro, imported gas, solar and wind. But these avenues seems to have been blocked by nefarious agendas.
In 2010, the department of energy proudly announced a 5 000 MW solar park to be built outside Upington. It hosted an international investors’ conference to kickstart progress. Since then, nothing has happened.
In 2014 the department proudly put up on the internet a slide show of how the Zuma and the DRC’s President Kabila had signed a treaty guaranteeing South Africa over 10 000 MW of imported hydropower once the Inga dams were constructed.
By December 2016 the department had effectively airbrushed these out of its presentations. Clearly, political power had been applied to compel the department to drop Eskom’s renewable division, and to suck up to its nuclear division. Which political power this was, became exposed this week when Zuma smeared opponents of his nuclear plans as western puppets.
What are global trends saying about nuclear energy?
<img loading="lazy" decoding="async" src="https://counter.theconversation.com/content/87022/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" />The building of new nuclear power stations in developed countries is drastically declining. The UK is alone in signing a contract to build a new one. Nuclear vendors have stepped up their sales campaigns in developing countries to compensate.
This article was originally published on The Conversation.

Op-Ed: Zuma’s allies are once again gung-ho about nuclear. Will they get their way?

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Energy availability and affordability remains a top priority Rwanda with 8 per cent year on year demand growth. Davide Bonsignore, COO &#038; Founder of OffGridBox unpacks their role in ensuring clean water and renewable energy in rural Rwanda.

OffGridBox aims to provide clean water, power in rural Rwanda

This content was supplied to CNBC Africa by AfricaCom
<a href="https://tmt.knect365.com/africacom/?utm_source=CNBC%20NA1&amp;utm_medium=Homepage&amp;utm_campaign=20th%20Anniversary">AfricaCom</a>, Africa’s largest technology, telecoms and media event celebrates its 20th anniversary in November this year, and promises delegates and exhibitors three days of thought-provoking content and cutting-edge technology and a glimpse into what the future holds in terms of digital and its impact on life as we know it.
<a href="https://secure11.eventadv.com/africacom/?_ga=2.2997493.47320750.1505722000-1826445331.1467279154&amp;utm_source=CNBC%20NA1&amp;utm_medium=FREE%20VISITOR&amp;utm_campaign=20th%20Anniversary">Claim your FREE visitor pass here</a>.
Taking place from 7-9 November at the Cape Town International Convention Centre (CTICC), South Africa, organiser KNect365 has introduced a host of innovations of its own to celebrate this auspicious occasion &#8211; a brand-new and happening Technology Arena that will provide a glimpse of the potential the future holds for forward-thinkers – whether it is in the Fintech space, or E-Health, education, energy, agri-tech or more.
<a href="https://tmt.knect365.com/africacom/technology-arena?utm_source=CNBC%20NA1&amp;utm_medium=Tech%20Arena&amp;utm_campaign=20th%20Anniversary">The Technology Arena</a> will also house an exciting array of new tech (over 100 exhibitors), some of which, will be interactive and on display in demo pods, along with many other novel developments that will debut at the show.  Included in this exciting space is another fresh feature, AfricaCom 20/20.  This is a brand-new show floor item dedicated to accelerating Africa’s digital transformation and is the centrepiece of the new arena.
Underpinning the event, is a business-critical agenda and, as always, world class speakers, alongside over 400 exhibitors. But AfricaCom is more than an exhibition and a conference.  It is now a staging ground for re-imagining and re-defining how we, as Africans and humans, will communicate and transact with one another.
“2017 is a landmark for AfricaCom. Over the past two decades, we have grown from being a purely telecommunications-focused event, to a broader, digital communications show now hosting the foremost group of influencers involved in every aspect of the African digital ecosystem,” explained Tom Cuthell, Portfolio Director of KNect365, the organiser of the event.
“As the digi-sphere continues to expand and impact every aspect of our personal and professional lives, AfricaCom has grown in scope to create a broad platform for everybody involved in powering the digital economy in Africa.”
The importance of this event is unquestionable.  Over the past two decades, it has provided a stage for robust debate, as well as identifying the needs for Africa’s growth and the solutions and subsequent policy making that has seen the continent leapfrog the desktop era, straight into mobile.
‘Digital’ is now intrinsic in our daily DNA, tomorrow and the day after.  As such, AfricaCom’s bringing together of front-end developers and backend engine drivers, into one place, is an essential service to the custodians of not just Africa’s future, but the planet’s, as we embrace the merging of man and machine in the 4th Industrial Revolution.
About AfricaCom 2017
AfricaCom is part of the Connecting Africa series of events that expose delegates, the media and the savvy, to the latest advancements and opportunities in technology and the digital ecosystem. Taking place at the Cape Town International Convention Centre (CTICC) from 7 &#8211; 9 November 2017, AfricaCom is now in its 20th year.   AfricaCom is Africa’s largest technology, media and telecommunications conference &amp; exhibition.  The conference programme covers the most strategic issues affecting companies in Africa’s digital market &#8211; services, efficiency, profitability, customer experience, partnerships, policy and more – and features several co-located events: LTE, TVC &amp; Mission Critical Africa.
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AfricaCom 2017 – Celebrating 20 years of Africa’s telecoms and technology journey

Bhavtik Vallabhjee| Barclays Africa
Africa’s power and energy sector is a critical driver of growth and development across the continent – so in order to ensure that the industry reaches its full potential and addresses the energy needs of citizens, it is necessary for businesses and producers to keep up to date with a rapidly changing landscape.
In this way, we have identified five key trends that will impact on the way that people live and work:
<ol>
<li>Coal power plants and projects are becoming more difficult to finance as there is a greater move towards investment in low-carbon technologies and green energy </li>
</ol>
More countries and companies worldwide are focusing on going green and investing in low-carbon technologies – a move that became more pronounced following the commitments made at the COP 21 United Nations Climate Change Conference in late 2015.
Appetite for coal projects is declining globally, but the trend is particularly noticeable and growing in OECD (the Organisation for Economic Co-operation and Development) member states. Organisations headquartered in some of these countries have  largely exited investing in of coal power plants , making public statements that they are focusing more intensively on low-carbon tech. China, too, is starting to make strides in the move away from its reliance on coal plants towards cleaner energy.
As low-carbon technologies and green energy continue to become more commonplace, financing coal power plants will become increasingly difficult. Similarly the pool of potential suitors to acquire such assets in mergers and acquisitions (M&amp;As) deals will also consequently shrink.
<ol start="2">
<li> The growing appetite for renewable energy in emerging markets</li>
</ol>
What’s more, there is a growing push from African countries such as Morocco, Senegal and South Africa, among others, to move from coal as feedstock to sources such as gas to fuel power plants. Renewable energy solutions in solar, and wind in particular have increased markedly due to the falling cost of these technologies making them competitive.  Similarly, with the low cost of gas more latterly compared to several years ago, (e.g. through the shale gas revolution in the USA) gas power plants have increasingly become more competitive compared to clean coal technologies. Connecting renewable energy onto the grid is becoming more affordable as Africa is blessed with abundant natural resources such as great solar irradiation and wind resource. E.g. the best solar sites  in the Northern Cape in South Africa, for example, receive over 2 500Kwh/ m2 hours of sunshine every year, with average solar radiation levels of between 4.5 and 6.5 kWh/m2 (kilowatts per metre squared per hour) every day. To put things in perspective, this is over two and a half times what Germany – a world leader in solar energy – receives, indicating the immense potential to tap the continent’s natural resources.
As such, it stands to reason that it is this dynamic that will ultimately impact on and alter the power landscape in Africa. While Africa has typically lagged behind developed markets in the uptake of renewable energy, this will become a feature of the past as appetite for renewable energy increases.
A critical part of the uptake of renewable energy is the use of an auction tariff regime as opposed to a feed-in tariff. South Africa already has the auction tariff system in place, as the country studied the best-of-breed practices in other markets globally before deciding to adopt a similar approach here in S.A.  . The move has worked well for the country and resulted in the cost of tariffs falling, which is beneficial to consumers.  There are similar initiatives in many other markets globally, including in Africa.
<ol start="3">
<li> The rise of battery storage</li>
</ol>
There has been massive investment in battery storage and research and development in the field by leading global companies such as Samsung, Tesla, Total and BYD in the past five years – and it is going to continue to gain momentum going forward, particularly when coupled with solar photovoltaic plants for storage of energy.
What will drive the growth of battery storage further is that the costs will drop substantially in the next three to five years.
<ol start="4">
<li> The power of distributed generation and the rise of smaller grids</li>
</ol>
It is well documented that African countries have endured challenges in the past with providing their citizens with electricity – more than 600 million people across the continent are still without power, illustrating that much still needs to be done in this space. It is my view that with the rise of trends like decentralized distributed generation, closing that gap will become more easily achievable.
Distributed generation has the ability to bring more citizens into the energy fold through the building of smaller power stations at specific load centres, rather than building bigger, centralised stations that need to transmit power long distance. This also assists in reducing transmission losses as power would not need to be evacuated over long distances. The introduction of multiple, smaller grids can substantially assist in transmitting power to where it is needed, bringing down the number of people without electricity.
There are huge opportunities in the decentralisation of renewable energy and businesses and countries that embrace the shift and invest in the space will yield good returns.
<ol start="5">
<li> The long-term move towards integrated grids through increased investment in transmissions projects</li>
</ol>
In developed markets such as the US and Europe, many countries’ grids are linked or integrated to evacuate power from a country with a surplus to one that has a deficit and is in need of power. This is not the case in Africa, where there are very distinct regional power pools  – such as the northern, southern, eastern, western, and central  power pools  –  with very little overlap and integration between them.
Although investment in transmission projects to link grids is slowly increasing in prominence, with many examples of transmission projects in countries such Ethiopia, Kenya and Mozambique, it is a gradual development and an expensive exercise. It is for this reason that growth in this area will continue to be slow and developments will only be visible over the next decade or even longer. However, as transmissions projects serve as a pre-cursor to power generation, investment in this space is a necessity and, as such, will continue to occur.
Conclusion:
Due to the large supply-demand gap in power on the continent, there will continue to be a large number of power projects being developed in the region. The political and economic climate across the continent has steadily improved over the last 2 decades or longer, making Africa a strong investment case for international developers. Despite the frustration of long lead times associated with developing infrastructure projects, on a risk-return adjusted basis, Africa still boasts far better returns than developed markets. Projects are generally well structured making the default rate on projects almost negligible. With its abundant natural resources for power (good solar radiation, wind, hydro and biomass potential, gas finds, amongst others), the energy landscape is changing – Africa will continue to be a compelling investment case.

Five trends to watch in Africa’s energy and power sector

AMSTERDAM (Reuters) &#8211; Anglo-Dutch oil major Royal Dutch Shell has started gas production from the second phase of the Gbaran-Ubie project in Nigeria&#8217;s Niger Delta, the company said on Wednesday.
The project is an expansion of the Gbaran-Ubie development, which opened in June 2010.
Shell, through its Shell Petroleum Development Company of Nigeria subsidiary, said the project would reach peak production of around 175,000 barrels of oil equivalent per day in 2019.
Shell Petroleum Development Company of Nigeria is the operator of a Nigerian joint venture between state-owned Nigerian National Petroleum Corporation, Total E&amp;P Nigeria and ENI subsidiary Nigerian Agip Oil Company.
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Reporting by Karolin Schaps, editing by Louise Heavens
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Shell says starts gas production at expanded Nigeria project

Botswana has granted Tlou Energy a mining licence for its Lesedi coal-bed methane (CBM) project, the company&#8217;s managing director said on Monday, paving way for what would be the southern African nation&#8217;s first gas-to-power plant.
&#8220;The awarding of the mining licence by the ministry is a major milestone for the company, further derisks the project, and is an important prerequisite to developing the first commercial gas-to-power project in the country,&#8221; Tlou Managing Director Tony Gilby said in a statement.
Coal-bed methane is a form of natural gas trapped in underground coal seams.
Tlou said it had received a request for proposal from the Botswana government to provide up to 100 megawatts (MW) of CBM power from its Lesedi project.
Botswana currently has two coal-fired power plants with a capacity to produce up to 720 MW and plans to add another 500MW in the next three years through coal, gas and solar power.
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Writing by Olivia Kumwenda-Mtambo
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Botswana grants Tlou Energy licence for coal-bed methane project

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According to Alasdair Walker the Head of Marine and Energy for Africa at AGCS Africa, the sooner that Nigeria can diversify its exports away from crude oil and focus on the full petroleum value chain the better.

Nigeria needs to speed up shift away from oil – AGCS Africa

Like many other men and women in Mozambique’s capital, Maputo, Agostinho feels optimistic about the future. After years of living in extreme poverty, he now has his own business and lives with his family in Zimpeto, a growing neighbourhood in the northern outer end of Maputo.
One of the things that has made the biggest difference to him and his family’s life has been improvements in the energy system. In Zimpeto his household is linked to the electricity grid. Agostinho buys electricity through a prepaid system called <a href="http://www.edm.co.mz/index.php?option=com_content&amp;view=article&amp;id=63&amp;Itemid=67&amp;lang=en">Credelec</a>. Thanks to Credelec Agostinho has <a href="http://onlinelibrary.wiley.com/doi/10.1111/1468-2427.12314/full">greater control</a> over his electricity spending but prices have gone up and he’s now paying more. Using electricity for cooking is too expensive.
Thus, the game changer in Agostinho’s life has been the arrival of gas. Until last year, the family relied entirely on charcoal for all their cooking needs, a <a href="https://extra.shu.ac.uk/ppp-online/wp-content/uploads/2014/12/communities-urban-energy-mozambique.pdf">common occurrence</a> in Maputo’s low income neighbourhoods. Last year he invested in a new gas cookstove and a gas cylinder. The convenience soon became apparent. The gas stove cooks faster, is cleaner and can be used inside the house. While the cookstove and gas cylinder cost a fair amount, this represents a significant advancement.
The benefits of gas improved further when in June this year <a href="https://noticias.mmo.co.mz/2017/06/preco-de-de-gas-domestico-reduz-em-mais-de-40.html">the price halved</a>. An 11kg bottle that used to cost US$13 (773 MZN) now costs US$7 (446 MZN), making it cheaper than charcoal. In a country where firewood and charcoal account for <a href="https://www.iea.org/statistics/statisticssearch/report/?country=Mozambique&amp;product=balances">77%</a> of the total energy balance, the transition to gas can make an enormous difference to the lives of the poorest people.
The drop in prices came just after Mozambique’s Minister of Mineral Resources and Energy, Leticia Klemens, and the Vice-President of Shell, Clare Harris, signed a <a href="http://clubofmozambique.com/news/mozambique-government-and-shell-enable-local-use-of-rovuma-basin-gas/">memorandum of understanding</a> for the domestic exploitation of Mozambique’s gas reserves in the Rovuma Basin. This is one of the <a href="http://www.facing-finance.org/en/database/cases/rovuma-basin-mozambique-gas-explorationrovuma-becken-mosambik-erkundung-von-gasfeldern/">largest</a> reserves of natural gas in southern Africa. The announcement of the agreement alone has been sufficient for the government to drop consumer prices.
The agreement follows a public tender to exploit gas reserves for domestic purposes. The government also awarded <a href="http://af.reuters.com/article/commoditiesNews/idAFJ8N1E702P">two other projects</a>. In the past, Mozambique’s energy policy focused on generating revenue <a href="http://www.sciencedirect.com/science/article/pii/S2214629616300354">through</a> exporting natural resources, such as hydropower and coal, at the expense of developing internal markets. If maintained, these projects will mark a significant departure from previous energy policies.
The one dark cloud hanging over this development is the <a href="https://www.theguardian.com/global-development/2017/jan/27/mozambique-fabulous-wealth-gas-reserves-pay-nurses-debt-crisis">country’s debt crisis</a>. Many expect that gas revenues will help palliate the consequences of this odious debt, but gas is still <a href="https://www.ft.com/content/be682056-5cc2-11e7-b553-e2df1b0c3220?mhq5j=e2">not flowing</a>. After last year’s scandal, the government is anxious to show that it’s able to mobilise the country’s natural gas reserves to benefit ordinary Mozambicans.
<h2>Difficult transition</h2>
The drop in gas prices was a key theme at a <a href="http://www.britac.ac.uk/sustainable-energy-access-mozambique-socio-political-factors-conflict-laden-urban-areas">workshop</a> with local leaders of some of the poorest neighbourhoods in Maputo.
“People are transitioning to gas”, explained one participant. This transition is clearly visible in Maputo. The charcoal-based urban landscape is disappearing. Gone are the days when there was a charcoal-selling point in every corner, although the charcoal depots remain strong in large markets. As deforestation advances, charcoal is produced farther and farther away, with most coming from the relatively unstable province of Gaza. Charcoal is now so expensive that gas has become a more affordable option for many people.
Yet, for now, charcoal continues to be the <a href="http://www.sciencedirect.com/science/article/pii/S0301421517300095">fuel of choice </a> for most households in Maputo. The transition to gas is, as yet, incomplete.
In their discussions, local leaders explained that gas is the new norm in cooking practices but most households have not yet adopted it. A heated discussion emerged about why people continue to use charcoal. Is it because gas cookstoves are too expensive? Is it because people prefer to cook with charcoal through habit? Or are they used to the taste of the meat cooked with charcoal? Perhaps people are unaware of the possibilities of gas and how to use it? Or maybe many families perceive gas to be unsafe?
One neighbourhood leader said:
<blockquote>We are just like this, it is difficult to change us!</blockquote>
He said this to justify the need for civic education. Yet, it’s not people who have to change. Rather, a range of institutional, infrastructural and socio-economic factors determine the possibilities for sustainable transitions to universal energy access. For example, in some neighbourhoods, accessing gas supplies is difficult whereas charcoal sellers will bring charcoal right to the door of households in portions small enough to be affordable on a day-to-day basis. Moreover, households may not provide a safe setting to install a gas cookstove, even when the family can afford it.
The transition to gas is not inevitable. As one of the community leaders in the workshop stated, “accessing energy is a process”. Gas may contribute to improve the lives of Maputo’s inhabitants. However, this depends on a gradual process of adjustment of local practices of energy use, changes in the built environment to fit gas technologies and the development of local energy markets to facilitate access to gas supplies.
*Names are pseudonyms

Maputo’s residents can now use gas. But dropping charcoal is proving hard

CAPE TOWN (Reuters) &#8211; South Africa is committed to an &#8220;open, transparent&#8221; process to build new nuclear power plants and the government planned to go through with its plans for nuclear expansion, President Jacob Zuma told parliament on Thursday.
South Africa is planning to build 9,600 megawatts (MW) of nuclear capacity, a project that could be one of the world&#8217;s biggest nuclear contracts in decades.
But Energy Minister Mmamoloko Kubayi said on Wednesday in Moscow that the plans will be reviewed as the country is in a recession.
(Reporting by Wendell Roelf; Writing by Ed Stoddard; Editing by James Macharia)
&nbsp;

South Africa committed to nuclear power expansion, process to be open: Zuma

MOSCOW (Reuters) &#8211; Russian energy group Rosatom is a contender for South Africa&#8217;s nuclear expansion project and the country will award the contract by the end of the year, the chairman of the South African Nuclear Energy Corporation (Necsa) said on Monday.
South Africa is planning to build 9,600 megawatts (MW) of nuclear capacity to wean itself off coal, a project that could be one of the world&#8217;s biggest nuclear contracts in decades.
Besides Rosatom, major nuclear firms from South Korea, France, the United States and China are interested in bidding for it.
&#8220;We are aiming for this to be done before the end of the year, and we very imminently want to start,&#8221; Kelvin Kemm, Necsa chairman, told Reuters on the sidelines of a nuclear conference in Moscow, when asked when South Africa would make a decision on which company would build the new nuclear reactors.
&#8220;Rosatom is definitely in there, but a decision has not been finally made. That will be a decision made by the senior politicians in collaboration with the technological and the company people,&#8221; Kemm said.
Earlier on Monday, a Rosatom official said the Russian company was in contact with South African authorities over their plans to increase the country&#8217;s nuclear capacity.
Those plans were disrupted after South Africa&#8217;s High Court earlier this year deemed a nuclear cooperation pact with Russia unlawful.
In May, state-controlled Rosatom said it was still committed to taking part in a competitive bidding process to build nuclear plants in South Africa. Rosatom was created in 2007 from the Russian Atomic Energy Ministry with a view to turning nuclear power into a major export industry for Russia.
Necsa&#8217;s Kemm said on Monday that the court ruling had delayed the country&#8217;s plans by a couple of months.
In response to a question as to whether Rosatom was a leading contender for the planned nuclear expansion, Kemm said: &#8220;Absolutely, Rosatom is a very important player&#8221;.
(Reporting by Alexander Winning. Editing by Jane Merriman)

S.Africa aims to choose company for nuclear project by year-end

Aaron Ross | KINSHASA
Democratic Republic of Congo on Tuesday asked Chinese and Spanish consortia vying to develop a long-delayed $14 billion hydroelectric project to join together and submit a single bid.
The statement represents a new delay for the Inga 3 project, which has struggled to attract financing. Last May, the government announced plans to select a developer by October 2016 and begin construction this month.
The World Bank announced it had suspended funding for Inga 3 last July after the presidency took control of the project from the prime minister&#8217;s office, raising concerns about transparency.
A brief statement from the presidency gave no reason for the latest decision, which affects the China Three Gorges Corporation and a consortium that includes engineering giant Actividades de Construccion y Servicios SA.
The project along the Congo River will expand ontwo existing Inga hydroelectric dams and is part of aneight-stage Grand Inga project that would produce a record44,000 MW at an estimated cost of $50 billion to $80 billion. Proponents say it could one day power half of Africa. Critics say the money would be better spent supporting smaller local plants.
<blockquote>&#8220;The two consortiums have been invited &#8230; to do everything possible to form a single group before submitting an optimized bid,&#8221; said a statement from the presidency.</blockquote>
Of Inga 3&#8217;s 4,800 MW, 2,500 will be sold to South Africa and1,300 is earmarked for Congo&#8217;s mining sector. The remaining1,000 will go toward meeting domestic demand in a country whereless than 15 percent of the population has electricity.
(Reporting by Aaron Ross; Editing by Matthew Mpoke Bigg, Larry King)
&nbsp;

Congo tells consortia to form joint bid for Inga 3 hydro project

Loucoumane Coulibaly | ABIDJAN
Ivory Coast plans to build a 25-megawatt solar power plant in the north of the country as it seeks to bolster a strained power grid with renewables, a government spokesman said on Wednesday.
The 23.6 billion CFA franc ($40 million) plant will be built by Korhogo Solaire, a subsidiary of Morocco&#8217;s Nova Power, and is expected to be operational by 2018, Bruno Kone told reporters after a cabinet meeting.
It could be one of the first solar power plants in Ivory Coast which until now has depended mostly on gas- and oil-fired thermal plants to produce power and has only a small number of planned solar projects.
&#8220;The realization of this&#8230;plant will improve the balance of the energy mix, which requires an increasingly strong integration of renewable energy,&#8221; Kone said.
Ivory Coast, the world&#8217;s top cocoa producer, is one of Africa’s rising economic stars, but rapid growth has strained the power sector in the West African country, which also exports electricity to Burkina Faso, Benin, Ghana, Mali, Togo, and parts of Liberia.
Demand for electricity is increasing by about 10 percent annually and the government hopes to attract enough investment to double output to 4,000 megawatts by 2020.
($1 = 587.7600 CFA francs)
(Reporting by Loucoumane Coulibaly, editing by Edward McAllister and Elaine Hardcastle)

Ivory Coast to build 25 MW solar power station

Reem Shamseddine and Marwa Rashad | RIYADH
OPEC and other oil producers are on course to agree an extension of supply cuts at a meeting on Thursday, with Saudi Arabia saying most participants are on board with the plan to rein in a global supply glut.
Saudi Arabia&#8217;s energy minister said on Sunday that extending the supply cuts by a further nine months until next March, and adding one or two small producers to the pact, should reduce oil inventories to their five-year average, a key gauge for OPEC to monitor the success of the initiative.
<blockquote>&#8220;Everybody I talked to&#8230; expressed support and enthusiasm to join in this direction, but of course it doesn’t preempt any creative suggestions that may come about,&#8221; Khalid al-Falih told a news conference in Riyadh.
&#8220;We believe that continuation with the same level of cuts, plus eventually adding one or two small producers, if they wish to join, will be more than adequate to bring the five-year balance to where they need to be by the end of the first quarter 2018.&#8221;</blockquote>
The Organization of the Petroleum Exporting Countries, Russia and other producers agreed last year to cut production by 1.8 million barrels per day (bpd) for six months starting from Jan 1.
Oil prices have gained support from reduced output, but high inventories and rising supply from producers not participating in the accord, such as the United States, have limited the rally, pressing the case for extending the curbs.
Saudi Arabia and non-OPEC member Russia, the world&#8217;s top two oil producers, last week agreed on the need to prolong he current deal on cuts, which expires in June, until March 2018, pushing up prices.
On Friday, Brent crude LCOc1 closed up $1.10, or 2.1 percent, at $53.61, the highest settlement for the international benchmark since April 18.
With a nine-month extension now the minimum expectation for the Vienna meeting, OPEC has a lot of work to do to persuade its members and some non-OPEC producers to back the move.
Non-OPEC member Kazakhstan has said it would struggle to join any new deal on the old terms, as its own output was set to jump.
But OPEC&#8217;s second-producer Iraq, whose output is growing fast, has said it will support extending output cuts in line with any OPEC decision, but did not specify for how long Baghdad was willing to extend the current cut.
Even Iran is likely to go along with such the extension plan if there is a consensus, sources familiar with Iranian thinking have told Reuters.
Falih said his understanding from a public announcement by his Iranian counterpart was that Iran was happy to stay within the production ceiling allocated to them last year.
Iran was the only OPEC member allowed to increase its output under the supply cut deal.
The current Iranian oil minister, Bijan Zanganeh, said earlier this month he believed producers were likely to extend the OPEC-led deal although he did not give a timeframe.
INVENTORIES REMAIN HIGH
OPEC&#8217;s aim is to reduce global oil inventories to the industry&#8217;s five-year average.
While inventories held at sea and in producer countries have dropped, they remain stubbornly high in consumer regions, particularly in Asia and the United States.
Estimated inventories in industrialized nations totalled 3.025 billion barrels at the end of March &#8211; about 300 million barrels above the five-year average, according to the International Energy Agency’s latest monthly report.
Preliminary April data indicated stocks would rise further, the IEA said. Crude stocks stood at a record 1.235 billion barrels.
Falih said high compliance to the supply curbs by oil producers including Russia and high seasonal demand for oil in summer will help reduce oil inventories and stabilise the market.
<blockquote>&#8220;Our expectation going forward is continuing a balanced and reasonable cut in volumes will optimise for all producers all their revenue, while at the same time keeping prices in a reasonable range for consumers and for the overall market,&#8221; he said.</blockquote>
An OPEC panel reviewing scenarios for the oil producer group&#8217;s meeting last week looked at the option of deepening and extending the agreement to reduce crude output, in an attempt to drain inventories and support prices.
The panel, the Economic Commission Board (ECB), does not set policy and its meeting precedes the gathering of OPEC and non-OPEC oil ministers on May 25 to decide whether to extend the supply pact.
The size of the extra supply cut being mulled by the ECB was not immediately available.
OPEC sources have said that while a larger cut by existing participants was considered unlikely, one could still be debated and the size of the supply reduction could increase from 1.8 million bpd if more non-OPEC countries come into the deal.
OPEC has been urging other producers to join the supply pact. Turkmenistan, along with Egypt and the Ivory Coast, are due to attend the meeting, sources have said.
(Additional reporting by Katie Paul and Andrew Torchia; Writing by Rania El Gamal; Editing by Mark Potter and Clelia Oziel)

OPEC heads towards supply cut extension as Saudi signals most on board

Chris Mfula | LUSAKA
Zambia is close to reaching an agreement with mining companies over its plans to increase electricity prices, Finance Minister Felix Mutati said on Wednesday.
The government last month proposed introducing a flat tariff of 9.30 U.S. cents/kilowatt hour (kWh) backdated to January for mining companies, instead of individually negotiated rates that have averaged 6 U.S. cents/kWh, but mining companies opposed the plan.
A team headed by the minister of energy was due to hold talks with mining companies this week, including First Quantum Minerals,.
&#8220;We have concluded with all the mining houses except for one. They have accepted our proposal to actually pay 9.33 cents/kwh,&#8221; Mutati told Reuters.
However, an agreement has not yet been reached on backdating the higher tariffs to January as proposed by power firm Zesco Ltd, he said.
&#8220;It is part of the negotiations but ideally that is what the government is considering,&#8221; Mutati said.
Other mining companies operating in Zambia, Africa&#8217;s No. 2 copper producer, include Glencore of Switzerland, Brazil&#8217;s Vale and London-listed Vedanta Resources.
Last week Zambia&#8217;s Energy Regulation Board (ERB) approved a 75 percent increase in the price of electricity for retail customers.
(Reporting by Chris Mfula; Editing by James Macharia and Susan Fenton)
&nbsp;

Zambian government says close to agreement with mines on electricity price rises

Access to electricity is key to Africa’s future. It is the springboard to increased prosperity and a better quality of life. Without it, children struggle to study, ideas won’t be transformed into thriving businesses and the continent will never completely plug into the global economy.
But as many as seven in ten Africans can’t depend on reliable power. This is a huge brake, both on their ambitions and the continent’s development. Unless we can overcome this energy deficit, Africa’s economic and social progress will be crippled.
The scale of the challenge is clear. Only 60 per cent of properties in sub-Saharan Africa are connected to an electricity grid. Rural areas, in particular, find themselves cut off from power.
Millions of Africans know, connection itself is by no means a guarantee of reliable supply. Blackouts are a fact of everyday life across much of the continent.
		
				
		
In Ghana, Afrobarometer found that, while 87 per cent of homes are connected to a grid, less than half enjoyed reliable power. The African Development Bank discovered that manufacturers lose an average of 56 days a year of production because of power shortages.
And when energy does arrive, the price can be three times more than consumers pay in other regions – even in those countries with similar levels of economic development. When businesses or families have to rely on diesel-based generators, costs can be even higher.
With Africa’s population forecast to double to 2.4 billion by 2050, the continent is set to make up nearly a quarter of the global workforce. Managing the mismatch between power supply and demand requires urgent action. This is why providing the power Africa needs ranks among the most important global challenges.
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Africa does not lack energy resources. The continent has vast fossil fuel reserves, and will be powered by renewable energy in the longer term. Its climate in large parts provides ideal conditions for solar and wind power generation. Only a fraction of Africa’s hydroelectric and geothermal potential has yet been exploited.
Innovation, investment and partnerships are needed to harness this rich energy potential, and ensure the continent’s communities and businesses can prosper.
Since 2000, investment in sub-Saharan African energy supply has more than doubled. But it is still nowhere near enough to meet the shortfall in generation capacity and, critically, to put in place the infrastructure to get electricity to the entire continent.
Official estimates show that sub-Saharan Africa will need $450 billion in power sector investment within the next 20-30 years. Most of this will have to come from outside our continent.
This is why partnerships are so critical to overcoming Africa’s energy challenge. We need the courage to forge new partnerships and show investors the rewards of working with African governments and companies, to drive growth within the continent. In turn, governments will have to work hard to provide the stable conditions to attract investment.
We also need to take a regional view. One successful example is the Southern African Power Pool (SAPP). SAPP connects 12 countries across the region. This means that power coming from a new gas-powered plant in north-east Mozambique won’t just help get electricity to the 70 per cent of the population in that country without access. It also offers the possibility of sending it to places it is needed, such as Malawi or Zambia.
Just as we have adapted mobile technology to leapfrog the need for fixed phone networks, Africa can also lead the world in innovative energy solutions.
These solutions must also be combined with initiatives tailored to local conditions and communities, using the resources available in those places. In some areas, small-scale solar power combined with biomass technology can meet the needs of rural villages without expensive power lines having to be put in place.
Solutions must also be affordable for the consumer. For example, replacing charcoal with more affordable and environmental friendly briquettes saves consumers money, as well as the environment. Great Lakes Africa Energy is take a lead in such initiatives.
Tackling Africa’s energy deficit must be a priority for the continent. But it should also be high on the global agenda. Providing access to reliable and affordable energy is key to Africa’s prosperity. And a prosperous Africa is key to a strong global economy in the decades ahead.
*Humphrey Kariuki is Chairman of Great Lakes Africa Energy and the Dalbit Group

Op-ed: Tackling Africa’s energy deficit must be a priority for the continent

The New Development Bank recently held its <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=160274">second annual meeting</a> in the Indian capital of New Delhi to discuss the sustainability of financing development projects in its member states.
The multilateral bank was established by the BRICS states of Brazil, Russia, India, China and South Africa. With headquarters in Shanghai, China, it was created to support emerging economies and provide an <a href="http://uk.businessinsider.com/the-brics-countries-just-launched-a-rival-to-the-imf-and-world-bank-2015-7">alternative to the domination</a> of the World Bank and the International Monetary Fund.
But the new bank is already proving to be a replication of the Bretton Woods institutions. This can be seen through the <a href="http://www.business-standard.com/article/economy-policy/european-development-bank-strikes-pact-with-new-development-bank-117040300784_1.html">partnerships</a> the new bank is forming as well as its operating posture.
It’s also showing bias towards the development of Asian countries. This is evident from its funding patterns and the recent proposed <a href="https://sputniknews.com/politics/201703221051849196-brics-enlargement-plan/">enlargement of the BRICS bloc</a>. The list of proposed additions includes Pakistan, Bangladesh, Iran, Nigeria, South Korea, Mexico, Turkey, Indonesia, the Philippines and Vietnam. All except three are Asian.
The proposed expansion of the BRICS countries has been justified as a move to <a href="http://www.iol.co.za/business-report/economy/brics-plus-can-be-new-model-of-integration-8700388">strengthen the bloc</a> and fill the void created by rising protectionism in the US. But it has been met with mixed reactions even among member countries. India, for example has expressed its disapproval that BRICS “plus” is China’s ploy to <a href="https://timesofislamabad.com/china-to-include-pakistan-in-brics-plus-ignoring-indian-concerns/2017/03/13/">cut New Delhi’s influence</a> in the group by roping in more pro-China countries.
The New Development Bank’s business as usual and its bias towards Asia suggests that it will not become an alternative source of finance. It will not address the key areas of needs for emerging economies like human capital development, poverty alleviation and basic healthcare.
<h2>More of the same</h2>
The New Development Bank was set up as an <a href="http://www.paragkhanna.com/home/new-brics-bank-building-block-alternative-world-order">alternative</a> to the World Bank and IMF which are viewed to be <a href="http://thoughtleader.co.za/sentletsediakanyo/2008/07/09/can-we-trust-the-west-imf-world-bank-etc/">pushing western agendas</a>. It was to provide a development model that would be sensitive and beneficial to emerging economies. But it’s quickly abandoning this mandate and falling into the trap of operating like the institutions it was created to replace.
In September 2016 the New Development Bank <a href="https://www.businesslive.co.za/bd/companies/2016-09-09-world-bank-and-new-development-bank-sign-mou-to-boost-partnership/">signed partnership deals</a> with the World Bank to co-finance projects. The agreement also aims to facilitate knowledge and staff exchanges. This puts the bank in bed with the institutions it was established to counter.
The bank has also signed memorandums of understanding with the <a href="http://www.ebrd.com/news/2017/new-development-bank-ebrd-affirm-mutual-goals-agree-cooperation.html">European Investment Bank</a>, <a href="http://www.ndb.int/borrowings/memorandum-understanding-new-development-bank-european-bank-reconstruction-development/">European Bank for Reconstruction and Development</a>, <a href="https://www.aiib.org/en/news-events/news/2017/20170401_001.html">the Asian Infrastructure Investment Bank</a> and <a href="http://www.ndb.int/press_release/new-development-bank-international-investment-bank-sign-memorandum-understanding-develop-cooperation/">the Eurasian Development Bank and the International Investment Bank (IIB)</a>. The agreements cover co-financing of infrastructure projects, the bulk of which are in Asia.
Perhaps the foundations of the bank were faulty from the start. Its <a href="https://mg.co.za/article/2017-03-31-00-brics-joins-the-reigning-world-order">original designers</a> were two former World Bank chief economists, Joe Stiglitz and Nick Stern. Given this history, it’s possibly never going to challenge the world financial order.
Today, the New Development Bank is pushing the <a href="http://www.business-standard.com/article/news-ians/brics-bank-should-focus-on-small-scale-investments-117033001495_1.html">corporate-led development model</a> just like the World Bank, the IMF and other Bretton Woods institutions. Their investments are profit-oriented which tends to undermine social justice. Thus similar to the World Bank and IMF, the New Development Bank seems more focused on protecting its investments at the expense of saving the interests of the BRICS citizens.
Over the past decade, the corporate led model has impoverished many people in emerging economies, particularly in Asia. It has led to <a href="http://www.globalresearch.ca/the-seeds-of-suicide-how-monsanto-destroys-farming/5329947">farmer suicides</a>, <a href="http://www.herinst.org/BusinessManagedDemocracy/government/privatisation/banks.html">large-scale privatization</a>, <a href="https://www.globalpolicy.org/social-and-economic-policy/the-three-sisters-and-other-institutions/the-world-bank/49476-dodging-world-bank-schizophrenia-the-looting-on-africa-continues.html">natural resource looting</a> and <a href="http://projects.huffingtonpost.com/worldbank-evicted-abandoned/how-worldbank-finances-environmental-destruction-peru">environmental degradation</a>.
<h2>Funding so far</h2>
The New Development Bank has so far made loans of <a href="http://www.ndb.int/projects/list-of-all-projects/">$811 million to entities</a> in four BRICS countries towards energy infrastructure. Of this $300 million went to Brazil, $81 million to China, $250 million to India, and <a href="http://thebricspost.com/brics-bank-announces-first-set-of-loans/#.WQN5ePmGPIU">$180 million to South Africa</a>.
For South Africa, the bank has so far not provided any meaningful opportunity to obtain additional finance. The loan of $180 million (R2.6 billion) was given to South Africa’s power utility Eskom to develop 670 MW of power generation and 500 MW worth of renewable energy projects involving <a href="http://www.sabc.co.za/news/a/a239fb804c72c32d96d9df3b0fa74342/EskomundefinedgetsundefinedR2.6blnundefinedNDBundefinedloanundefinedforundefinedrenewableundefinedenergy-20161804">independent power producers</a>. This <a href="https://www.businesslive.co.za/bd/companies/energy/2017-01-16-eskom-distorts-facts-about-renewable-energy-group-claims/">unnecessary loan</a> to an inefficient state owned entity has only contributed to BRICS’s power over South Africa by adding onto the current contingents <a href="https://www.businesslive.co.za/bd/opinion/2017-03-31-the-brics-bank-green-energy-gordhan-and-the-guptas/">liabilities</a> dollar-based loans that the government has guaranteed for the next 12 to 20 years.
<h2>Weaknesses</h2>
There are weaknesses in the way in which the New Development Bank works that also raises questions about its intent.
First, the bank’s activities are often shrouded in secrecy. There are no clear official records available to the public about the bank’s activities, decisions and operational guidelines. Analysts have to rely on secondary and tertiary information sources.
Second, the bank is yet to present any socio-economic redress and environmental operational guidelines for communities. This would ensure that its funding does not lead to displacement, evictions, ecological destruction, loss of livelihoods and threats to the basic right to life. These issues have recurred for decades due to <a href="http://projects.huffingtonpost.com/worldbank-evicted-abandoned/how-worldbank-finances-environmental-destruction-peru">projects funded</a> by other multilateral development banks.
Lastly, as a co-financier with development institutions like the World Bank, the bank’s seriousness about promoting transparency, accountability and probity remains questionable.
To strengthen its relevance to emerging economies, the New Development Bank must review the much criticised, inequitable representation of developing countries, especially from Africa. It must also focus more on small-scale investments rather than large-scale infrastructure projects. These often lead to exclusion of people and communities, and aggravate existing vulnerabilities rather than bringing about development.

BRICS bank is offering more of the same rather than breaking the mould

TJ Strydom | JOHANNESBURG
South Africa&#8217;s public enterprises minister has blocked power utility Eskom from giving its former chief executive a 30 million rand ($2.3 million) pension payout, the government said on Sunday.
Brian Molefe, who is largely credited with stabilising electricity supply following months of rolling blackouts, resigned last year after he was implicated in a report by the anti-graft watchdog on alleged influence-peddling.
Molefe has denied any wrongdoing.
&#8220;I have considered the Eskom board&#8217;s reasoning in formulating the proposed pension payout and cannot support it,&#8221; public enterprises minister Lynne Brown said in a statement.
Brown said the payout could not be seen as a performance reward, as Molefe had already received a bonus for his role in turning Eskom around.
&#8220;Nor is the proposed pension payout justifiable in light of the current financial challenges faced not only by state-owned companies, but by the country as a whole,&#8221; she said.
Credit ratings agencies S&amp;P Global and Fitch downgraded South Africa to sub-investment grade this month after President Jacob Zuma removed respected finance minister Pravin Gordhan.
Eskom&#8217;s credit rating was downgraded afterwards, a blow to the utility as it is yet to complete work on two coal-fired power stations, years behind schedule and over budget, and as it plans to build nuclear reactors.
Brown ordered Eskom&#8217;s board to meet with Molefe and present her with an &#8220;appropriate pension proposal&#8221; within seven days.
Molefe, now a member of parliament for the ruling African National Congress, took the reins at Eskom in 2015 as Africa&#8217;s most industrialised economy endured daily power cuts, but soon implemented new maintenance policies to get more out of the nation&#8217;s fleet of ageing coal-fired power stations.
($1 = 13.1238 rand)
(Reporting by TJ Strydom; Editing by Dale Hudson)

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