Goingtomeet.com Press

The President of Ghana HE John Atta Mills is pleased to announce that the 10th Africa Investment Forum will be held in Accra on 3rd—4th April 2012, in partnership with the Economic Community of West African States (ECOWAS) and the Ghana Investment Promotion Centre (GIPC).

The Event is being organized by the Commonwealth Business Council (CBC) and it will take place at the International Conference Centre, hosted by HE John Atta Mills.

Building on the last Forum held in Accra in 2010, this year’s theme “Partnering with ECOWAS to Accelerate Investment” will focus on the opportunity to access the growing regional market in a continent of one billion people.

The Forum will offer networking opportunities and the space to discuss prospects in key sectors like Agriculture, Infrastructure, Banking and Financial services, Tourism, Manufacturing, Energy, Oil and Gas.

President of the Republic of Ghana John Atta Mills Said: “Africa and its regions are showing strong economic growth with many countries achieving more than 5% per annum and a growing middle-class with rising purchasing power. The time is now ripe to build a bigger African internal market driven by new investment.

The Forum will therefore bring together business and government leaders from Africa, Europe, North America and Asia-Pacific, to work towards this goal.”

Speakers will include Heads of Government, Ministers and senior officials, as well as Chairs and Chief Executives of businesses, investment funds and other industries.

John Atta Mills said: “This Forum will showcase the best investment opportunities that Africa and the ECOWAS region have to offer. The Forum presents a platform for investors and project partners to explore and discuss investment opportunities with ECOWAS Heads of State.”

The two days event will also include business round tables and plenary dealing with issues from Energy: Power Generation & Transmission; Tourism, Private Equity, Entrepreneurship & Venture capital; Manufacturing and Consumer Goods; Telecoms and Transport: Roads, Rail and Ports

The Africa Investment Forum is one of the longest standing international business events on the continent. By bringing in new international investors and partners, over the last decade, the Forum has made a practical contribution to economic development in many Commonwealth African countries.

Current speakers include:

Ewan Cameron Chief Executive Officer at Lonhro Hotels

Amrei Botha Head – SME Banking at Standard Bank (South Africa)

Anthony Sykes Deputy General Manager, Business Development at SMBC Europe Limited

Marc Whittingham President at Canadian Commercial Corporation

Jerry Parkes Managing Principal at Injaro Investments

Keith Palmer Executive Chairman at Ag Dev Company

Hamid Malik President and CEO at Global Resources

Ashish Thakkar Group Managing Director at Mara Group

Plenary

1. Enhancing Regional trade and investment: ECOWAS—COMESA—SADC This plenary will look at ways of encouraging trade and investment with and between the ECOWAS, COMESA and SADC states.
2. Public-Private Partnerships for Infrastructure Development. Cross border infrastructure development is a key issue in ensuring that African states can compete internationally.
3. Plenary 3) Agribusiness and Food Security. This plenary will address issues of security of supply in the Agricultural industry, development of large scale commercial farming alongside small holder agriculture and how best to capitalize on Africa’s under-developed farming sector.

   4. SME development and Microfinance. SMEs are an important and effective means of generating employment and economic development.

   
   

For more details please contact Kiran Luchman

Head of Sales & Marketing

18 Pall Mall | London | SW1Y 5LU | UK

DL: +44 (0) 20 7024 8271 | Main: +44 (0) 20 7024 8200 | Fax: +44 (0) 20 7024 8201 | Web: www.cbcglobal.org

Email: kiran.luchmun@cbcglobal.org

Note:

The Commonwealth Business Council (CBC) was established in 1997 with a direct mandate from Heads of Commonwealth Governments to promote trade and investment amongst 54 member nations and in-crease economic linkages with non-member countries.

CBC’s goal is to achieve economic empowerment for shared global prosperity through the enhancement of private sector contribution to social and economic development.

The Ghana Investment Promotion Centre (GIPC) is a government agency, designed to encourage, promote and facilitate investments in all sectors of the economy except mining and petroleum They are the one-stop agency that facilitates and supports local and foreign investors in both the manufac-turing and services sectors as they seek more value-creating operations, higher sustainable returns and new business opportunities.

For more information please visit www.gipcghana.com

We have developed a short 30 second advert for flighting on CNN International EMEA feed (Europe, the Middle East & Africa)

The concept is not only to create awareness around the event but also promote awareness around the current energy situation and solutions in a fresh and interesting way.

Share this : Africa Energy Indaba on YouTube

PRESS RELEASE

WORLD ENERGY COUNCIL HEAD TO DELIVER CLOSING KEYNOTE ADDRESS AT AFRICA ENERGY INDABA

Africa Energy Indaba is pleased to announce that Dr. Christoph Frei, Secretary General of the World Energy Council will be delivering the closing keynote address at the upcoming Africa Energy Indaba scheduled to take place from 21 -23 February 2012 at the Sandton Convention Centre in Johannesburg.

The Africa Energy Indaba is an annual energy conference held in South Africa that brings together  – under one roof – Africa’s leading energy experts, government officials, financers and other relevant energy stakeholders to talk on energy projects, challenges and opportunities in Africa.

The World Energy Council formally recognises Africa Energy Indaba as the council’s African Regional Meeting, an event renowned as a leading energy gathering in the region which aims to facilitate interaction between energy leaders to plan the energy future and landscape of the continent.

Dr. Frei commented “Africa shares many of the global concerns of the energy leaders’ community. While there is no single silver bullet solution to respond to the varied nature of Africa’s energy challenges, the Africa Energy Indaba is an important forum to help leaders address the Energy Trilemma.”

This is well aligned with the objectives of the World Energy Council –as the principal impartial energy policy forum promoting an affordable, stable and environmentally sensitive energy system for the greatest benefit of all.

“We are looking forward to welcoming Dr. Frei to this very important event and are pleased to be aligned with such a well-respected global organisation represented by 3000 members from governments, the private sector, NGO’s and other energy stakeholders from over 90 countries , 20 of which are African states,” says Liz Hart, Managing Director of Africa Energy Indaba.

The World EnergyCouncil informs global, regional and national energy strategies by hosting high level events, publishing authoritative studies and working through its extensive member network to facilitate the Energy Leaders’ dialogue.

ENDS

1 February 2012

Prepared by: Siyenza Management

Karabo Keepile

011 463 9184

Karabo@siyenza.za.com

On behalf of: the Africa Energy Indaba 2012

Liz Hart

011 463 9184

About Africa Energy Indaba 2012

The Africa Energy Indaba takes place from February 21 to 23 2012 at the Sandton Convention Centre, Sandton, Johannesburg. The event brings together stakeholders from the global energy industry and the financial community, including energy providers, engineers, financial service providers, economists, government representatives and media. Visitwww.energyindaba.co.za

About the World Energy Council: www.worldenergy.org

AFRICAN ENERGY SECTOR IS OPEN FOR BUSINESS

The African energy sector is open for business. In actual fact there has been no better time than now to conduct business on the continent. The number of projects has quadrupled from that of 10 years ago and many of the continent’s governments are now democratic, paving the way for economic growth.

In support of the opportunities within the energy sector, the annual Africa Energy Indaba which will be held on 21-23 February, has developed a unique roundtable which will focus and unlock the potential of this vital industry sector for companies wanting to tap into this market.

Paul Runge – Managing Director of specialised consulting firm Africa Project Access will be heading an energy roundtable discussion at the upcoming Africa Energy Indaba on February 23 February– opening up the floor for discussion on major energy greenfields and brownfields projects on the continent. According to Runge “the discussion will have a business focus and will also be very practical. We will look at projects from the ground up and talk about where things are headed. We will talk about export credit insurance, state organs that are able to help South African & African companies and projects throughout the Sub-Sahara region and regional interconnectors,” says Runge.

Joining Runge in the roundtable discussion will be role players in some of these projects such as Ethiopia’s hydro-power programme – currently the biggest hydro-power project in Africa. The roundtable discussion will bring together Africa’s energy operators, financers and other important role-players. “It will be a great opportunity to learn of new and exciting projects and opportunities as well as network”, says Runge. Templates of specific projects will also be made available to those attending.

The Africa Energy Indaba will take place at the Sandton Convention Centre in Johannesburg.  This leading business forum brings together more than 300 senior level energy sector experts and decision–makers. Over 100 leading energy suppliers will also be present at the annual exhibition showcasing their latest technologies, equipment and services.

Delegates attending this year’s conference are also invited to attend and take part in the roundtable discussion scheduled for February 23, 2012 and information is available on the event website www.energyindaba.co.za .

Paul Runge has 30 years’ experience assisting companies to access business and projects in Africa. He has developed a practical rationale and methodology that will be of value to companies and organisations wishing to diversify their portfolio into Africa. His company Africa Project Access supplies approximately 80 companies and organisations with early alerts on projects across a broad range of sectors on the continent. As a former diplomat, Runge has useful background knowledge on the political and business landscape of the countries he conducts business in – a value add for the clients who seek his services.

Runge has lived in Gabon and supervised projects in the Cape Verde Islands, has spent six years with the South African Foreign Trade Organisation and has led many of the first South African business delegations into other African countries following the end of international sanctions against South Africa.  He has furthermore, published a book, Potholes & Profits: Business (& other) Conversations and Experiences from Africa which is an anecdotal account of his experiences in a number of African markets.

ENDS

23 January 2012

Prepared by: Siyenza Management

Karabo Keepile

011 463 9184

karabo@siyenza.za.com

On behalf of the Africa Energy Indaba 2012

About Africa Energy Indaba 2012

The Africa Energy Indaba takes place from February 21 to 23 2012 at the Sandton Convention Centre, Sandton, Johannesburg. The event brings together stakeholders from the global energy industry and the financial community, including energy providers, engineers, financial service providers, economists, government representatives and media. Visit www.energyindaba.co.za.

Acknowledged as a World Energy Council (WEC) event for Africa as well as fully endorsed by the South African National Energy Association (SANEA), the event has the support of the world’s leading energy industry associations.

About the World Energy Council www.worldenergy.org

About SANEA www.sanea.org.za

About the Africa Project Access-www.africaprojectaccess.co.za

Biogas is probably the best kept secret in the renewable energy industry.

Organic waste is one of the untapped sources of natural energy available today. “It’s a simple solution that can be deployed in as quickly as three days but people don’t know too much about it”, says Jonathan de Magalhães, Managing Director of Ubuntu Energy Solutions. While biogas is used all over the world –India for example has more than 4.5 million digesters–harnessing biogas energy in South Africa is practically unknown. Only a small number of digesters have been built successfully and commissioned to date – a loss to the renewable industry sector in the country since biogas fulfils all of the criteria relating to environmental sustainability, requires a relatively low technological input and is cost effective to implement.

Biogas typically refers to the gas which is produced by the biological breakdown of organic matter. Organic waste, such as dead plant matter, animal manure and kitchen waste, can easily be converted into biogas in a simple biogas digester. Biogas consists mainly of methane (CH₄) and carbon dioxide (CO₂). Biogas can be used as fuel for cooking, lighting, water heating as well as being able to run biogas generators to produce electricity.

Biogas provides a clean, easily controlled source of renewable energy from available organic waste for a small labour input, replacing firewood or fossil fuels, which are becoming more expensive as demand outweighs the supply.

Additionally, a biogas digester treats the organic waste and prevents it from taking up precious space in our landfills or over-burdened sewerage plants. In South Africa the waste disposed of in landfills produces unwanted landfill gas (Methane CH₄) and leachate emissions. Furthermore, there is pressure on the country’s aging sewerage system. According to de Magalhães, generating biogas presents a Win-Win -Win solution because it offers:

Easy disposal and treatment of Organic Waste

-      Black Water Treatment: By feeding the black water (sewerage) into the biogas digester, additional organic waste as well as much needed water, will increase the yield of biogas from the digester daily. Additionally, in environments that would normally require a septic tank system, the cost saving of not needing the septic tank can be used to offset the costs of the biogas system.

-      Organic waste, such as grass cuttings, animal manure, kitchen waste and almost any other type of similar waste, can be used to generate a usable form of energy.

-      As the biogas digester is a closed system, there is no leakage of the organic waste into the surrounding environment. This can significantly reduce, or even eliminate, the need for an Environmental Impact Study.

Reduction of associated Energy Costs

-      The biogas generated by the digester system can be used for water heating, space heating, cooking, lighting or running a biogas generator for electricity generation. Or any combination of these.

-      By using biogas instead of traditional resources, such as electricity or gas, to provide this functionality, energy costs can be significantly reduced, providing a quick Return on Investment (ROI) for biogas solutions.

Provides further Cost Savings or a Passive Income

-      As the process of biogas generation uses the bacteria in the organic waste, the organic slurry found at the end of the process can be easily managed, and all organic smells are contained within the closed digester system. This organic slurry can be used as a natural fertiliser for nearly all agricultural applications, reducing any costs associated with purchasing traditional fertilisers.

-      This 100% natural organic fertiliser can also be sold to agricultural farms and nurseries, either in its liquid form or pre-dried and pelletized, providing an additional form of income from the biogas digester.

Biogas digesters are used all over the world, and the technologies have made leaps and strides, especially over the past three years. The first biogas system was installed in India in 1859. South and south-west Brazil are characterised by intensive livestock farming. Rio Grande do Sul, the southernmost Federal state in Brazil, has an abundance of pig farms. The manure produced in large quantities by pig farming is used for biogas production.

According to de Magalhães, generating biogas offers a better Return on Investment (ROI) than solar or wind systems. “It’s easy to install and deploy, and is very low in maintenance, probably only requiring some attention once every 5 to 7 years. For these reasons, biogas digesters would work well in rural villages, farming communities and game lodges,” says de Magalhães.

But even the average family in Johannesburg could use their organic household waste in a biogas system. “As long as you have enough feedstock to put into the biogas system, such as blackwater, grass cuttings, and a reasonable amount of kitchen waste, then you can generate your own biogas. Even with a small system with enough organic feedstock, combine this with some solar panels and an intelligent inverter system, and you could get about 80% off the grid, all things considered.” says deMagalhães.“There is no smell because it is a closed system, and the payback period could easily be under 10 years, which is much shorter than a solar-powered system.”

However, amidst all these advantages, there have been no government initiatives in South Africa to assist those wishing to deploy biogas systems.

To learn more about biogas technology, be sure to attend the annual Africa Energy Indaba being held from February 21 to 23, 2012 at the Sandton Convention Centre in Johannesburg.

ENDS

16 January 2012

Prepared by:      Siyenza Management

Karabo Keepile

011 463 9184

On behalf of:     Africa Energy Indaba

Liz Hart

011 463 9184

About the Africa Energy Indaba

The Africa Energy Indaba, adopted by the World Energy Council (WEC) as the African regional event of the WEC, receives global recognition as the foremost event for energy professionals from across the globe and is rapidly gaining momentum as the energy business forum in Africa.
Presented by the South African National Energy Association (SANEA) in association with the World Energy Council, the forum has achieved the highest level of endorsement and support and as such is without doubt the leading energy event in Africa.

About Ubuntu Energy Solutions

Ubuntu Energy Solutions is a specialist South African energy company that integrates different renewable energy and power solutions for our customers, providing them with the right solution for their energy requirements. Contact Jonathan de Magalhães atjonathan@ubuntuenergy.com, or visit www.ubuntuenergy.com.

The Africa Energy Indaba has partnered with Fiat and Alfa Romeo Specialist, Arnold Chatz Cars. This collaboration will see Arnold Chatz Cars sponsoring a fleet of three eco friendly Fiat 500s as the official vehicle of the Africa Energy Indaba, that will take place on 21-23 February 2012 at the Sandton Convention Centre.

The Fiat 500 is a leading eco friendly car with its 1.2 liter engine having a CO2 emission level below the taxable threshold, combined with plenty of power and a full house of extras. Safety levels are exceptional, with seven airbags, ABS brakes and a five star NCAP safety rating. The Fiat 500 is the car of choice to be associated with the Africa Energy Indaba with the commitment of ‘moving energy in Africa into the future’ and finding alternative solutions for Africa’s energy needs and greening the environment.

Liz Hart, MD of the Africa Energy Indaba says “Energy efficient technology is crucial to the future of the continent and our aim with the event is to showcase new technologies as well as to highlight innovation that business and the consumer can make use of. Climate Change is receiving a lot of attention with the imminent COP 17 event in Durban. All of society needs to take responsibility and make good and informed decisions with regard to carbon emissions and we are delighted to partner with Arnold Chatz Cars to highlight the importance of finding solutions for our energy needs while looking for better and more efficient technology to sustain our lifestyle. The Fiat 500 is a superb vehicle that is highly fuel efficient with low carbon emissions, and the highest safety levels in its class.”

Arnold Chatz Cars and Fiat Auto are delighted to be associated with Africa Energy Indaba 2012. Fiat Auto are the international frontrunners in the area of low emission and eco friendly vehicles and we see the Fiat 500 as the natural partner vehicle for AEI 2012.

This green fleet will be making its way down to COP 17 in Durban during December and will campaigning around Johannesburg throughout the new year leading up to the Africa Energy Indaba – Africa’s only World Energy Council (WEC) endorsed event.

The Fiat 500s will also be on display at the Africa Energy Indaba, in the exhibition hall. The exhibition will be open to the public from 10h00 till 16h00 on 21 February and 10h00 until 17h00 on 22 and 23 February 2012.

Photographs of the car handover are available on request.

ENDS
21 November 2011

Issued by: Siyenza Management
Mabel Modipa
011 463 9184

On behalf of: Africa Energy Indaba
Liz Hart
011 463 9184

Arnold Chatz Cars
Derik Scorer
0829444444

About the Africa Energy Indaba 2012
The Africa Energy Indaba, adopted by the World Energy Council (WEC) as the African regional event of the WEC, receives global recognition as the foremost event for energy professionals from across the globe and is rapidly gaining momentum as the energy business forum in Africa.

Presented by the South African National Energy Association (SANEA) in association with the World Energy Council, the forum has achieved the highest level of endorsement and support and as such is without doubt the leading energy event in Africa.

About Arnold Chatz Cars
Arnold Chatz Cars is a Fiat, Abarth and Alfa Romeo Dealership based in Hydepark, managed and owned by Derik Scorer who is also the Chairman of the National Automobile Dealers’ Association.

Energy Intensive Users’ Group (EIUG)
Eskom electricity price path is not sustainable, say biggest users
The Energy Intensive Users’ Group (EIUG) has cautioned that the high and continually rising price of electricity — since the first round of tariff hikes in South Africa — will place consumers and business under great pressure in the next few years.

The EIUG supports the need for a strong and healthy Eskom and recognizes the importance of the power utility to the South African economy. However the EIUG is adamant that there is a pressing need to balance Eskom’s financial health with the affordability of electricity to ensure that consumers do not suffer unduly, and that businesses are able to remain competitive.

As far as the EIUG is concerned, the next scheduled tariff increases will have adverse effects, and far reaching implications for all South Africans. These price increments add additional pressure to Industrial customers to maintain current production levels and further price increases will result in production halts and job losses, which South Africa cannot afford.

South Africa has already seen the effects of rising electricity prices on key business sectors and as a result, the EIUG is undertaking an industry wide impact assessment of the electricity price path. “We have seen a number of refineries and smelters closing down and need to determine how poor the outlook is to ensure South Africa doesn’t shed critically needed jobs”. The EIUG is urging all companies currently concerned about the impact of electricity prices to go to www.eiug.org.za to register to participate in this impact assessment.

Eskom’s results for 2011, released in June, show an expected rise in total revenue by 28.6% on the back of the 24.8% electricity tariff increases last year. But a spokesperson for the EIUG said it was of concern that primary energy costs have increased by 19.8%.The EIUG says this is a significant increase over and above the 17% increase in primary energy seen last year and expects NERSA to conduct an audit to determine the root causes.

In real terms, the average Eskom price this year will be ~50c/kWh. Taking into account that new generation costs about 75c/kWh and adding 30% for transmission and distribution, the electricity price could end up close to a whopping 100c/kWh. Municipal customers will pay more, while Eskom transmission customers will pay less as NERSA has recommended that municipalities charge an extra 15 percent for 2010/11, then 16 percent for each of the next two years.

Taking into account the blending of old and new assets it would be expected that customers should not pay more, and should preferably pay less, than 100c/kWh but Eskom has been allowed to revalue its assets and so the price advantage of blending has been lost.

The EIUG expects the average tariff to settle around 75c to 80c/kWh by 2016, which means that customers can expect another 50% to 60% increase over the next three years. The group, which represents the biggest business energy users in the country, says it should be a priority to hold increases as low as possible, so as to ensure Eskom’s financial sustainability, while ensuring affordability and competitiveness.

The EIUG says Eskom’s results show that the power utility has invested a significant amount of cash in securities, perhaps as a result of borrowing too much cash and having to invest the excess. Clearly, Eskom is not spending as much Capex as expected.

The power utility’s cash position is looking good with interest cover going from 0.83 to 1.54. Ideally, this should be above 2.0 and possibly even 2.5. Debt service cover ratio has gone down slightly from 2.5 to 2, which is acceptable but shouldn’t drop further. The next round of tariff increases will push Eskom’s finances into a very comfortable zone. Regulatory Return on Assets (ROA) is approximately 7.5%, with Eskom and NERSA aiming for 14%. The EIUG says this will increase cash and profitability to unnecessarily high levels and has argued for a ROA target of 11.5% to mitigate the current unsustainable price path.

The debt percentage is around 62%, which is very close to the target of 60%.

Overall, the EIUG says, Eskom’s financial position is looking much better and virtually all financial indicators are improving, but the group cautions that electricity prices must not be “overcooked” or South Africa will suffer.

——————————————————————————————————————————

Shaun Nel
Director& Founder, BDO Consulting Services

Currently the Programme Director for the Energy Intensive Users Group Programme Office. He was part of the Department of Energy’s IRP 2010 technical task team. He is part of the National Medium Term Risk Mitigation Task Team to address the energy crisis in the medium term. He was previously the Programme Director of the National Electricity Response Team (NERT).

——————————————————————————————————————————

About the EIUG

Established in 1999, the Energy Intensive User Group (EIUG) of South Africa is a voluntary, non-profit association of large scale, high intensity energy consumers whose members currently account for approximately 44% of the electrical energy consumed in South Africa. For more info visit www.eiug.org.za

——————————————————————————————————————————

CONTACT DETAILS
To secure your participation at this prestigious event, please contact:

Liz Hart
Tel: +27 11 463 9184
Fax: +27 11 463 8432
Email: info@siyenza.za.com

SEPTEMBER 2011

Energy Intensive Users’ Group (EIUG)
Eskom electricity price path is not sustainable, say biggest users

The Energy Intensive Users’ Group (EIUG) has cautioned that the high and continually rising price of electricity — since the first round of tariff hikes in South Africa — will place consumers and business under great pressure in the next few years.

The EIUG supports the need for a strong and healthy Eskom and recognizes the importance of the power utility to the South African economy. However the EIUG is adamant that there is a pressing need to balance Eskom’s financial health with the affordability of electricity to ensure that consumers do not suffer unduly, and that businesses are able to remain competitive.

As far as the EIUG is concerned, the next scheduled tariff increases will have adverse effects, and far reaching implications for all South Africans. These price increments add additional pressure to Industrial customers to maintain current production levels and further price increases will result in production halts and job losses, which South Africa cannot afford.

South Africa has already seen the effects of rising electricity prices on key business sectors and as a result, the EIUG is undertaking an industry wide impact assessment of the electricity price path. “We have seen a number of refineries and smelters closing down and need to determine how poor the outlook is to ensure South Africa doesn’t shed critically needed jobs”. The EIUG is urging all companies currently concerned about the impact of electricity prices to go to www.eiug.org.za to register to participate in this impact assessment.

Eskom’s results for 2011, released in June, show an expected rise in total revenue by 28.6% on the back of the 24.8% electricity tariff increases last year. But a spokesperson for the EIUG said it was of concern that primary energy costs have increased by 19.8%.The EIUG says this is a significant increase over and above the 17% increase in primary energy seen last year and expects NERSA to conduct an audit to determine the root causes.

In real terms, the average Eskom price this year will be ~50c/kWh. Taking into account that new generation costs about 75c/kWh and adding 30% for transmission and distribution, the electricity price could end up close to a whopping 100c/kWh. Municipal customers will pay more, while Eskom transmission customers will pay less as NERSA has recommended that municipalities charge an extra 15 percent for 2010/11, then 16 percent for each of the next two years.

Taking into account the blending of old and new assets it would be expected that customers should not pay more, and should preferably pay less, than 100c/kWh but Eskom has been allowed to revalue its assets and so the price advantage of blending has been lost.

The EIUG expects the average tariff to settle around 75c to 80c/kWh by 2016, which means that customers can expect another 50% to 60% increase over the next three years. The group, which represents the biggest business energy users in the country, says it should be a priority to hold increases as low as possible, so as to ensure Eskom’s financial sustainability, while ensuring affordability and competitiveness.

The EIUG says Eskom’s results show that the power utility has invested a significant amount of cash in securities, perhaps as a result of borrowing too much cash and having to invest the excess. Clearly, Eskom is not spending as much Capex as expected.

The power utility’s cash position is looking good with interest cover going from 0.83 to 1.54. Ideally, this should be above 2.0 and possibly even 2.5. Debt service cover ratio has gone down slightly from 2.5 to 2, which is acceptable but shouldn’t drop further. The next round of tariff increases will push Eskom’s finances into a very comfortable zone. Regulatory Return on Assets (ROA) is approximately 7.5%, with Eskom and NERSA aiming for 14%. The EIUG says this will increase cash and profitability to unnecessarily high levels and has argued for a ROA target of 11.5% to mitigate the current unsustainable price path.

The debt percentage is around 62%, which is very close to the target of 60%.

Overall, the EIUG says, Eskom’s financial position is looking much better and virtually all financial indicators are improving, but the group cautions that electricity prices must not be “overcooked” or South Africa will suffer.

——————————————————————————————————————————

Shaun Nel
Director& Founder, BDO Consulting Services

Currently the Programme Director for the Energy Intensive Users Group Programme Office. He was part of the Department of Energy’s IRP 2010 technical task team. He is part of the National Medium Term Risk Mitigation Task Team to address the energy crisis in the medium term. He was previously the Programme Director of the National Electricity Response Team (NERT).

——————————————————————————————————————————

About the EIUG

Established in 1999, the Energy Intensive User Group (EIUG) of South Africa is a voluntary, non-profit association of large scale, high intensity energy consumers whose members currently account for approximately 44% of the electrical energy consumed in South Africa. For more info visit www.eiug.org.za

——————————————————————————————————————————

CONTACT DETAILS
To secure your participation at this prestigious event, please contact:

Liz Hart
Tel: +27 11 463 9184
Fax: +27 11 463 8432
Email: info@siyenza.za.com

The German Ministry of Economics and Technology will provide a German pavilion to specifically promote the participation of German companies in the Africa Energy Indaba 2012.

The German pavilion will include a large official information stand — which is usually staffed by consultants contracted by the German government — as well as stands of participating German companies from which German renewable energy know-how and products will be marketed.

However, the German pavilion will not only focus on selling German services and products, but also on finding suitable South African and African partners.
The German government promotes the participation of German companies in select international trade fairs and exhibitions around the world by appointing a company to organise a pavilion which hosts participating German companies. Such German pavilions are organised at approximately 250 events per year.

Within this framework, there is a special programme focusing on renewable energy. In 2012, 10 select international events will form part of this special programme.

According to Pieter Bouwer of the Afrika-Verein der deutschen Wirtschaft (German-African Business Association), “Africa Energy Indaba 2012 is one of these select events and the only African event to be included in the special programme for renewable energy. South Africa has great potential regarding renewable energy, as well as substantial energy demand. Germany has substantial experience in this field and world-class know-how and products. Therefore, there should be enormous scope for closer cooperation between Germany and South Africa and the rest of Africa in this field,” he says.

Brian Statham, Chairman of the AEI added, “The widespread use of renewable technologies is in its infancy in South Africa and this is the perfect time for South African and German interests to combine forces in this developing market. Furthermore, renewable technologies lend themselves to off-grid applications which can make a significant contribution to relieving the energy poverty that is endemic in rural Africa.”

Germany is working around the clock to become the world’s first industrial power to use 100 percent renewable energy. In fact Germany could very well accomplish this goal by 2050.

The share of electricity produced from renewable energy in Germany has accelerated from 6.3 percent of the national total in 2000 to about 17 percent in 2010. In that year, investments in Germany’s renewable energies sector totalled 26 billion Euros.

According to official figures, about 370 000 people in Germany were employed in small and medium sized companies in the renewable sector in 2010. This is an increase of around 8 percent compared to 2009 where around 339, 500 jobs were created and filled. Close to two-thirds of these jobs can be attributed to the Renewable Energy Sources Act.

The German Renewable Energy Sources Act was designed to encourage cost reductions based on improved energy efficiency plans. The Act was enforced in 2000 and has seen a considerable boost in renewable energies in Germany.

In 2010, nearly 17% of Germany’s electricity supply was produced from renewable energy sources — more than the 2010 contribution of gas fired power plants.

On August 31, 2011 the German Federal Cabinet adopted the Adaptation Action plan to show their support to the German Strategy for Adaptation to Climate Change.

By 2030, as much as 50 percent of Germany’s electricity should be coming from renewable energy sources. That’s about the same time Germany and the entire European continent plan to have the interconnected smart grid in operation.

Germany has been at the forefront of renewable energy technologies for years now and is well positioned to become the first country to switch to green power completely.

For more information on German renewable energy technologies and know-how visit the German pavilion at the Africa Energy Indaba 2012.

ENDS

20 September 2011

Prepared by: Siyenza Management
Karabo Keepile
011 463 9184
karabo@siyenza.za.com

On behalf of: Africa Energy Indaba 2012
Liz Hart
011 463 9184
liz@sieynza.za.com

About Africa Energy Indaba 2012
The Africa Energy Indaba takes place from February 21 to 23 2012 at the Sandton Convention Centre, Sandton, Johannesburg. The event brings together stakeholders from the global energy industry and the financial community, including energy providers, engineers, financial service providers, economists, government representatives and media. Visit www.energyindaba.co.za

About the World Energy Council www.worldenergy.org

About the South Africa National Energy Association www.sanea.org.za

Kind Regards

Electricity power increases have refocused the attention on small hA database detailing all microhydro installations in Eastern and Southern Africa will be launched at the upcoming Hydropower Africa conference and exhibition in Johannesburg from 19-23 September. The web-based database will show current developments and provide information while hydropower industry professionals will also be able to update content.

The driving force behind this project is microhydro expert Wim Jonker Klunne, who is a senior researcher in Rural Energy and Development, at the CSIR: “The information on small hydropower in Africa is very sketchy and incomplete at the moment. It is certainly not known how many installations do exist and where. The ultimate aim of the database is to identify success stories of small hydroplants that have been in operation for a long time already and see how their success can be used to develop implementation models for small hydropower that ensure sustainable operation.”

Jonker Klunne says it surprises him that such a robust mature technology has been ignored for so long. “Furthermore, there are many systems out there that operate very satisfactorily but which are not publicly known. In my interactions with players in the field we really “discover” existing plants very regularly!”

He defines small and microhydro as “run-of-river” installations that normally do not having storage reservoirs and are well suited to serve isolated rural communities that are normally not connected to the national electricity grid.

Microhydro ideal for rural development

According to Wim Jonker Klunne, most of the challenges in implementing (small) hydropower in Africa are related to regulations, financing, human and technical capacity and a lack of resource data. He explains: “the technology itself is certainly not a problem as hydropower is a mature proven technology.”

He says the potential is huge and that only a very small fraction is being utilised at the moment. “Small hydro in Africa has certainly not reached a situation as in China where over 100 000 microhydro stations are in operation! One of Africa’s success stories is definitely the microhydro installations that you can find in remote areas of for example Tanzania that provide really remote areas with electricity for productive uses, lighting and entertainment. Microhydro is able to provide “grid-quality” electricity to those communities and really make a difference in the living conditions!”

SA’s higher electricity prices

CSIR’s Wim Jonker Klunne says the potential for small hydro in South Africa is on the Mpumalanga escarpment, most of KZN and the Eastern Cape regions. “Also the many water conveyance systems, like the Lesotho Highlands Water System offer excellent opportunities for small hydro. Although some successful examples of small hydro do exist in South Africa, the traditionally low electricity prices did not encourage people to develop potential sites. The current shift in the country with more and more interest in renewable energy certainly has changed the situation.”

Getting one’s feet wet at hydropower site visits
This year’s Hydropower Africa will offer delegates a unique opportunity to view first hand some of Africa’s top hydropower projects during site visits from 21-23 September:

- Small hydro: Eastern Cape small and mini hydropower schemes (via helicopter)

- Large hydro: Kafue Gorge Power station, Kariba North Bank Power Station, Zambia

- Large hydro: Inga, DRC

More speaker highlights include:
§ Minister Dipuo Peters, Department of Energy, South Africa
§ Minister Malusi Gigaba, Department of Public Enterprises, South Africa
§ Wu Xianhong, Programme Officer – Project Development, International Network on Small Hydro Power (IN-SHP), China
§ Siseho Simasika, CEO, Electricity Control Board, Namibia
§ Jasper Odour, Executive Secretary, East African Power Pool, Ethiopia

Hydropower Africa event dates and location:
Conference: 19-20 September 2011, Sandton Convention Centre, Johannesburg.
Post-conference workshops: 21 September 2011, Sandton Convention Centre, Jhb
Site visits: 21-23 September 2011
Event website: www.hydropowerafrica.com

For more information:

Communications Manager: Annemarie Roodbol

Email: Annemarie.roodbol@clarionevents.com

Tel: +27 21 700 3558

Fax: +27 21 700 3501

Mobile: +27 (0) 82 562 7844

Kind regards,

Dania Petrik
Marketing Managerydro