Africa’s Critical Energy Infrastructure in the Spotlight

Most infrastructure investments on the continent are in the energy sector, but power plants and transmission lines across Africa, most of which were erected in the 1950s and 1960s, operate today at just a fraction of installed capacity due to insufficient maintenance and lack of modernisation.

Across the continent, infrastructure is either disrupted, damaged or non-existent. However, investment in energy infrastructure is critical to the continent reaching its economic potential and exploiting its current growth trends.

Meeting the demands for Africa’s critical energy infrastructure was in the spotlight at the annual Infrastructure Africa Business Forum, which concluded on Wednesday at the Sandton Convention Centre. According to the Africa Progress Panel (APP) in its recent “Power, People, Planet” report, Sub-Saharan African governments should be aiming to increase electricity generation capacity tenfold and achieve universal access to electricity by 2030. The International Energy Agency (IEA) recommends that Africa raise energy generation by 4% per year to 2040.

Sub-Saharan Africa has only 90GW of electricity generation capacity and energy constraints are costing the continent 2%-4% of GDP per year. But some progress is evident. There are now 130 independent power providers in sub-Saharan Africa and about 27 private equity investments were made in energy between 2010 and 2013, valued at $1,2bn. This boost is partly due to President Barack Obama’s Power Africa initiative, increased energy cooperation between Europe and Africa, Chinese project finance for large-scale power projects, and South Africa’s renewable energy programme.

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Cameroon Students Turn Household Waste into Eco-Friendly Coal

Students at Douala University have come up with an ingenious way to combat the Cameroonian city’s mounting waste management problem. They’re behind a pioneering scheme that produces a new eco-friendly form of coal based on everyday household waste – from old banana peels to leftover food.

Douala, in western Cameroon, is a city with a big waste management problem. Douala sprawls over several hills and its mountainous geography makes it difficult to get waste bins and maintenance workers in and out of some neighborhoods. It isn’t rare to come across rotting piles of banana peels, vegetables or other rubbish thrown into the street waiting to be collected.

But to combat the rising tide of food waste flooding Douala’s city streets – and protect the environment – a group of university students have come up with a unique type of coal that’s 100% eco-friendly.

“We carried out some studies on the region around Douala, and what we found was alarming: 79% of the population used wood or charcoal as a source of domestic energy. The problem is that both energy sources contribute to the region’s ongoing deforestation. Mangrove wood is such a sought-after commodity that the trees are slowly being wiped out. They’re either cut down or burnt in the forest to make charcoal.  In addition to that, Douala also has these giant compost heaps that pollute the city. We started wondering if we could kill two birds with one stone by coming up with a new source of energy made from this waste. We rolled up our sleeves, grabbed our wheelbarrows, and visited as many markets and private individuals as we could to collect everything from banana peels to used coffee grains in order to create a new kind of environmentally-friendly coal.

The process takes a full day. At first, the waste must be dried in the sun in order to remove as much water as possible. Then we have to put the leftover material in ovens in order to reduce it to ashes, and finally, process the ash until all becomes a seamless whole.

At the start, the people who we collected the waste from didn’t understand what we were going to be able to do with it. But when we came back with the coal and told them, “that’s your trash”, they couldn’t believe their own eyes!”

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Gupta Family Scores R4-billion Coal Supply Deal with Eskom

Eskom went to “extraordinary lengths” to ensure the Gupta family scored a R4-billion coal supply deal from the parastatal. This is according to a report in the Sunday Times.

The reports states that the Gupta mine linked to the multi-billion rand deal had failed coal quality tests four times, before being awarded the lucrative deal on the fifth try. Shortly after the deal was concluded, it is reported that four Eskom employees were suspended for questioning the quality of the coal.

The Gupta’s mining company, Tegeta Exploration and Resources, had tried since 2011 to score an Eskom deal, but had always been rejected.  A test in March on the company’s coal found it to be “within specifications, but risky” – which resulted in a 10-year deal to supply the Majuba power station being awarded to it.

Two months after the Gupta-owned company started delivering coal, though, the supply was rejected due to poor quality. On 31 August, Eskom sent a letter of suspension to Tegeta – complaining about the sub-standard coal.  However, after voicing “great concern” in the suspension letter, the temporary ban on the Gupta’s coal was lifted five days later.

Four Eskom employees, with over 50 years experience, involved in the quality control process were suspended. Two laboratories which conducted the coal quality tests, SGS SA and Sibonsiwe Labs, were also suspended by Eskom.

The Sunday Times reported that Tegeta claimed Eskom staff had colluded with laboratory staff to state the coal was sub-standard in order to extort a bribe from the Guptas.  Eskom said Tegeta’s coal had subsequently been tested by the SABS, and was found to be compliant.

Tegeta told the newspaper it operated “in line with corporate governance best practice”, but declined to comment on the issues surrounding its supply deal with Eskom.

[Source:  http://businesstech.co.za/news/energy/98241/gupta-family-scores-r4-billion-coal-supply-deal-with-eskom/]