IN PIPELINE POWER PRODUCERS INCREASING
This is illustrated by the number of licences granted by the Swaziland Energy Regulatory Authority (SERA) to interested companies
Soon after confirming that it has granted Canham Mining a power generation licence, SERA’s Chief Executive Officer Vusi Mkhumane has confirmed granting another IPP a 25 year power generation licence.
T-Colle Proprietary Limited applied for the licence in 2013. Over the years, the regulator was going through an intensive analysis of the application.
“T-Cole is the latest IPP to be granted a power generation licence after we completed our assessments and got board approval,” Mkhumane said.
The granting of T-Cole brings the number of licenced IPPs to seven. The other licenced companies are SGL Power, Royal Swaziland Sugar Corporation (RSSC), Ubombo Sugar Limited (USL), Canham Mining, Middle Lusutfu Hydro Power, and Wundersight.
Mkhumane said before a company could be licenced, it has to clearly indicate that it has an agreement with the Swaziland Electricity Company (SEC) on the tariff it will charge when selling the power, it must have a sound business plan
He said it should have received funding commitments from reputable financiers, should have completed an Environmental Impact Assessment (EIA) and should have contracts with reputable companies where it would source fuel or basic raw material.
After being granted a generation licence, Mkhumane said licensees are expected to provide quarterly progress reports.
The CEO said the progress report allows them to understand if the project would be implemented. He said it also informs them about the challenges being faced by the prospective investor so that they can be assisted where possible.