Latest news with #IPPs
The Star
5 hours ago
- Business
- The Star
Scheduled load shedding to impact Sabah, Labuan from Aug 1-7
KOTA KINABALU: A load shedding operation will be carried out in Sabah and Labuan from Aug 1 to Aug 7 due to scheduled maintenance at the Sabah Oil and Gas Terminal (SOGT) in Kimanis, Papar. These works carried out by PETRONAS will impact over 600,000 domestic users in Sabah and Labuan, said Sabah Electricity Chief Executive Officer Datuk Mohd Yaakob Jaafar at a press conference here on Wednesday (July 30). He said maintenance works on offshore and onshore platforms would result in the gas supplies to the two Independent Power Producers (IPP) in Kimanis being disconnected. These two IPPs are the Kimanis Power plant (255MW) and SPRE power plant (100MW), he said. Yaakob said they did not foresee any power disruptions in the initial phase of discussions with PETRONAS and the Energy Commission of Sabah (ECoS) earlier this year. However, based on information received on Tuesday (July 29), it was found that the power plants were unable to operate using alternative fuel, and this resulted in the need to load the shed, he said. He said a total of 195MW of power will be lost in the Sabah grid system for this seven-day period, which explains the load shedding from Aug 1 to Aug 7. Yaakob said that if possible, he hoped PETRONAS could postpone the maintenance works at SOGT until the generation capacity stabilises, so that there would be no power supply disruptions. 'This measure is needed to ensure stability in Sabah's electricity system. If maintenance works were put on hold, then the people of Sabah will have some relief,' he said. He said the load shedding process would be inconvenient to users in Sabah and Labuan, especially during peak hours between 10am and 10pm, where each area would have no supply for an hour or two, on a rotation basis. Yaakob said Sabah Electricity would work closely with all stakeholders, especially the IPPs and ECoS, to monitor the situation while taking proactive measures to reduce power disruptions. He urged the public to get more information on the load shedding schedule, which includes time, date and area affected via the Sabah Electricity Facebook page and the Sabah Electricity application.
IOL News
10 hours ago
- Business
- IOL News
The struggle for affordable, clean reliable power continues behind the scenes
This political dysfunction is a root cause of South Africa's electricity crisis, says the author. Image: Pexels As ordinary South Africans struggle to access clean, reliable, and affordable power, essential for a decent life and a functioning economy, a deeper, more entrenched power struggle continues behind the scenes. Over the coming weeks in this column, I will unpack this struggle and explore why South Africa continues to fail in establishing an efficient, effective electricity industry. We will examine the forces blocking progress and consider what a more functional energy future could look like, for the country and for the region. At its core, the power struggle is internal to the ANC. It is a contest between competing factions: between those committed to honest governance and those who enable patronage, corruption, and capture. It is also a struggle between those who support centralised state control of the economy, and those advocating for a more open, accountable, and decentralised system. The dominance of centralising forces, often corrupt and politically motivated, has led to state-owned entities, regulators, and oversight bodies becoming vehicles for power consolidation rather than service delivery. The result is familiar: institutional decay, private capital sidelined, and the majority of South Africans increasingly marginalised. This political dysfunction is a root cause of South Africa's electricity crisis. Without access to stable power, the economy cannot grow. Without growth, the tax base shrinks, the fiscus remains under pressure, and unemployment rises. The situation is exacerbated by a more isolationist United States and a weakening global economy, but the internal failures are primary. Consider how this unfolded. In 1998, government published its White Paper on energy policy, which included a plan to bring Independent Power Producers (IPPs) into the energy mix. But the policy was never backed with the political will needed to implement it effectively. Infighting among ANC factions undermined leadership at a critical time, creating uncertainty instead of the certainty investors require. With no clear path forward, investment stalled. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading From 1998 to 2005, Eskom was actively blocked from investing in new generation capacity. Then, in 2007 and again in 2008, load shedding emerged as a desperate tool to balance supply and demand. Ironically, some of the economic gains of the early 2000s, fiscal discipline and a push to deliver electricity access, only intensified demand, making the failure to invest in new capacity more damaging. In 2007/2008, government finally instructed Eskom to proceed with two new coal-fired power stations: Medupi and Kusile. Medupi's first unit was expected to be operational by 2010. But political interference soon followed. Chancellor House, the ANC's investment arm, became the BEE partner for Hitachi Power Africa, which was awarded the boiler contracts. The result: substandard workmanship, inadequate project management, missed deadlines, and cost overruns. Billions were lost in the process. Then came the Zuma presidency, May 2009 to February 2018, often referred to as South Africa's 'lost years.' One of Zuma's first moves was to split the Ministry of Minerals and Energy into two departments: Mineral Resources and Energy. Minister Dipuo Peters was appointed to head the Department of Energy, and Karén Breytenbach, an official from National Treasury, was tasked with establishing the Independent Power Producer Office. This marked a temporary turning point. The Renewable Energy IPP Procurement Programme was launched, and by 2011, the first request for proposals was published. Over the next five years, three successful bid windows followed, with the private sector investing approximately R220 billion in generation and grid assets. It remains one of the most successful public-private partnerships in South Africa's democratic history. Yet even as this progress unfolded, the broader machinery of the state was being captured. In 2015, Brian Molefe was appointed CEO of Eskom, and the power struggle intensified once more. The Renewable Energy programme stalled, confidence eroded, and the gains of the early 2010s were slowly reversed. The full story of South Africa's electricity crisis cannot be told without confronting the deeper political dynamics that shape it. It is not simply about capacity or megawatts, it is about institutional integrity, governance, and the political economy of energy. This column will continue to examine how these forces interact, and what it will take to move from a politicised energy system to a truly functional one. The solutions exist. The question is whether we have the political courage to implement them. Thomas Garner holds a Mechanical Engineering degree from the University of Pretoria and an MBA from the University of Stellenbosch Business School. Image: Supplied Thomas Garner holds a Mechanical Engineering degree from the University of Pretoria and an MBA from theUniversity of Stellenbosch Business School. Thomas is self-employed focusing on energy, energy related criticalminerals, water and communities. He is a Fellow of the South African Academy of Engineering and aManagement Committee member of the South African Independent Power Producers Association. *** The views expressed here do not necessarily represent those of Independent Media or IOL. BUSINESS REPORT
Express Tribune
3 days ago
- Business
- Express Tribune
Bitcoin data centres to boost employment opportunities
Listen to article Pakistan plans to use its surplus electricity for Bitcoin mining in an effort to expand digital economic activity and increase foreign exchange earnings, officials say. The country's total power generation capacity stands at 46,000 megawatts, significantly exceeding demand. In summer, power consumption reaches 26,000 megawatts, while in winter it falls to just 10,000 megawatts. Due to seasonal variations in electricity usage, the government aims to divert excess capacity to Bitcoin mining. Under the plan, 2,000 megawatts of electricity will be allocated for this purpose. Officials say the initiative will provide a source of income without relying on imports and will help boost foreign reserves. The government, in collaboration with the private sector, will develop Bitcoin mining as part of its broader 'Digital Pakistan' strategy. Authorities say the move will generate state revenue and create job opportunities for youth through the establishment of modern data centres. Better utilisation of Independent Power Producers' (IPPs) capacity will also support the stability of the national power grid, according to the plan. Read: Pakistan's crypto bet: digital dream or power misstep? Previously, government announced to allocate 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power bitcoin mining and AI data centres, finance ministry said. The allocation is part of government's plans to use its surplus electricity to bitcoin mining and AI data centres. Country's energy sector is grappling with challenges, including high electricity tariffs and surplus generation capacity. The rapid expansion of solar energy has further complicated the landscape, as more consumers turn to alternative energy sources to mitigate high costs. The initiative is spearheaded by the Pakistan Crypto Council (PCC), a government-backed body, which is part of a broader strategy to monetize surplus electricity, create high-tech jobs, and attract foreign investment, the ministry said. The allocation is the first phase of a broader, multi-stage digital infrastructure roll-out, it added.
Express Tribune
23-07-2025
- Business
- Express Tribune
PAC seeks remedy for post-200 unit billing
Junaid Akbar was elected unopposed as Chairman of the Public Accounts Committee in January 2025. Photo: Express/ File The Public Accounts Committee (PAC) on Tuesday took notice of the electricity tariff slab hike that penalises consumers for exceeding 200 units, directing the Power Division to propose a solution for inflated bills that persist for six months even after a single unit crosses the limit. The committee meeting, chaired by MNA Junaid Akbar Khan, reviewed audit paras related to the Ministry of Energy. Expressing concern, the chair demanded an explanation for the prolonged penalty on consumers who exceed the 200-unit threshold once. Officials briefed the committee on the status of Independent Power Producers (IPPs), revealing a sharp rise in installed capacity over the years. Committee member Shazia Marri questioned why provinces like Sindh and Khyber-Pakhtunkhwa continue to endure up to 16 hours of load-shedding despite a surplus in electricity generation. The power secretary informed the committee that 58% of electricity users fall under the 200-unit slab, with subsidised rates now benefiting 18 million consumersup from 11 million previously. He acknowledged the issue of high bills lasting months for consumers who breach the limit once. "To increase the slab limit, a higher subsidy will be needed," he said, adding that the government aims to reform the system by 2027, shifting to direct subsidies using BISP data. The Energy Ministry also noted that the installed capacity of IPPs rose from 9,765MW in 2015 to 25,642MW in 2024, with annual capacity payments jumping from Rs141 billion to Rs1.4 trillion. Committee member Syed Naveed Qamar disputed the Power Division's claim that coal was the main driver of high electricity costs. Meanwhile, Junaid Akbar raised doubts over reports of 200% electricity generation from bagasse, calling the numbers unrealistic.
Business Recorder
21-07-2025
- Business
- Business Recorder
Pakistan's power generation increases 8% in June
Power generation in Pakistan clocked in at 13,744 GWh in June 2025, an increase of over 8% MoM compared to the generation recorded in April 2025, suggesting an uptick in economic activity. Back in May 2025, power generation stood at 12,755 GWh. Analysts noted that rising temperatures and a significant increase in hydel generation i.e. 12% MoM also helped in demand improvement. On a yearly basis, power generation surged by 2% as compared to 13,461 GWh in June 2024. In FY25, power generation remained largely flattish, increasing by 0.1% YoY to 127,159 GWh compared to 127,059 GWh in the SPLY. 'Power generation in Pakistan in FY25 has remained flat on a YoY basis because companies relied largely on their power generation throughout the year amidst expensive grid energy,' said Topline Securities. 'The government introduced off off-grid levy in February 2025 to discourage the use of captives and encourage companies to move to the grid. 'Alongside this, the prime minister also reduced overall unit cost by over Rs5/kwh in Apr, May and Jun 2025 after savings from negotiations with IPPs and relocation of PDL amount to electricity saving. As a result of this, in 4QFY25, the electricity production was up 7%,' it noted. On the other hand, the total cost of generating electricity in Pakistan was up 1%, clocking in at Rs7.9 KWh in June 2025 compared to Rs7.8 KWh registered in May 2025. On a yearly basis, the cost was down 9%, compared to Rs8.6 KWh in June 2024. In June, hydel emerged as the leading source of power generation, accounting for 39% of the generation mix, to become the largest source of electricity generation. This was followed by RLNG, which accounted for 16% of the overall generation, ahead of coal local, which accounted for 11% of the power generation share. Among renewables, wind and solar generation amounted to 4% and 1%, respectively, of the generation mix.
