Page 10 - AfrElec Week 42

AfrElec RENEWABLES AfrElec
Wind lobby argues against tariff barriers
GLOBAL
THE Global Wind Energy Council (GWEC) has called for trade barriers that hurt wind turbine exports to be slashed, arguing that tariff walls could hinder global attempts to mitigate climate change. The trade body also called for an open investment climate for companies financing the global energy transition.
The GWEC said that some countries were putting up major obstacles to achieving climate goals, such as new trade barriers on commodi- ties and components affecting the wind industry.
Governments have also introduced new screening mechanisms amongst other measures to restrict foreing investment in the renewables sector.
GWEC claims that onshore wind energy has reduced its levelised cost of energy (LCOE) by 45% over the last decade, making it one of the most competitive sources of energy.
However, tariffs on key commodities and components could add up to 20% to wind tur- bine supply chain costs in some cases, which could dramatically slow down the energy tran- sition at a time when we need to be accelerating.
According to the IPCC, investment in
renewables needs to increase to $2.4tn per year by 2050.
Meanwhile, the International Renewable Energy Agency (IRENA) claimed this week that global investment in wind would rise from $85bn per year today to $300bn per year in 2050 in order to meet the IPCC’s climate goals.
“Every week we are hearing talk about new trade barriers and new restrictions on badly needed investments being introduced. Whether we are in Beijing, Brussels or Washington, we all face a common problem and need to co-operate to replace fossil fuels with renewables as fast as possible and at the lowest cost,” said Ben Back- well, CEO of the Global Wind Energy Council (GWEC).
“Trade wars and barriers do real damage to businesses by inflating prices. It makes a global supply chain less global, making renewables less competitive,” said Morten Dyrholm, senior vice-president at Vestas.
“Trade wars and barriers do not help spur localisation, and a healthy competition which is needed to attract investments,” he added.™
POLICY
Eskom takes Deloitte to
court alleging improper
contracts
South Africa’s Eskom is taking legal action to recover ZAR207mn ($14mn) linked
to contracts it alleges were improperly awarded to Deloitte Consulting in 2016, the cash-strapped state power firm said late on Monday, Reuters reported.
Eskom, struggling with debt of over ZAR450bn ($30bn)rand and reliant on government bailouts to keep the lights on, is at the centre of a judicial inquiry into corruption at state entities, in addition to several other probes into mismanagement at the company.
The power firm’s chairman and acting chief executive Jabu Mabuza said in a statement that it had filed court papers against Deloitte to recover the money linked to contracts it was awarded by former Eskom executives, accusing the consulting firm of unfair practices.
“Information before us shows that
NEWS IN BRIEF
Deloitte engaged in activities that were unfair, inequitable, non-transparent and uncompetitive using off-the-record briefings with Eskom officials to submit proposals, and were granted contracts even though their pricing was way above their competitors,” he said.
Mabuza said Eskom was asking the court to declare the activities relating to a batch of tenders “unlawful and unconstitutional, to set aside the awards, and for Deloitte to pay back the amounts paid to them”.
Deloitte Consulting disputed the allegations made by Eskom in an emailed statement on Tuesday, saying that it welcomed the opportunity to put its version and facts before a court.
“Deloitte Consulting has been engaging
in good faith with Eskom on this matter for some time now in order to assist Eskom to understand the processes followed and the value that Deloitte Consulting has delivered to Eskom,” it said.
The investigations and inquiries were triggered by the 2016 leaking of a trove of documents detailing relations between the wealthy Gupta family, former President Jacob Zuma, and deals struck with state firms like
Eskom, as well as a number of big companies including multinationals like McKinsey and Germany’s SAP.
The Gupta family and Zuma have denied the allegations.
INVESTMENT
Ghana loses $190mn US
grant over cancelled power
contract
The United States has cancelled $190 million in grants to Ghana under the Power Africa initiative in response to the Ghanaian government’s termination of a contract with a private utility provider, the US embassy said.
The Millennium Challenge Corporation (MCC), a US government foreign assistance agency, agreed in 2014 to provide $498mn in funding to Ghana’s power sector to help stimulate further private investment.
The financing was the largest by the United States under Power Africa, which was
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Week 42 23•October•2019