Jun 05, 2012
50 MW SA solar project part of Saudi group’s diversification driveBack
Construction|Engineering|ACWA Power International|Africa|Development Bank Of Southern Africa|Industrial|Industrial Development Corporation|Investec|Kurisani Solafrica Investments|PROJECT|Projects|Renewable Energy|Renewable-Energy|Solafrica Community Investment Company|Water|Africa|Jordan|Oman|Saudi Arabia|South Africa|Spain|Turkey|Debt Funding Requirements|Energy|Power Generation|Power-generation|Water|Northern Cape|Enver Asmal|Power|Water
© Reuse this
The development, which has an estimated project cost of R4.5-billion, was selected along with 18 other preferred bids during the second-window evaluation under government’s Renewable Energy Independent Power Producer Programme (REIPPP), which took place between March 5 and May 21.
ACWA Power has a portfolio comprising 12 000 MW of power generation capacity, as well as desalination plants able to process 2.3-million cubic metres a day. Its portfolio currently spans Saudi Arabia, Oman and Jordan, while it has a project under development in Turkey.
ACWA CE Paddy Padmanathan describes the Bokpoort project as a milestone for the group’s geographical and technological diversification. He says the project will also be key to the group’s aspiration of expanding its total capacity to 30 000 MW by the end of 2014 and having renewables making up five per cent of it power portfolio.
The Bokpoort consortium also comprises black economic–empowerment (BEE) firm Invest in Africa Energy (IAE), which has a 30% shareholding, the Industrial Development Corporation (IDC), Lereko Solafrica Investment, Lereko Metier Solafrica Fund 1, Lereko Metier Sustainable Capital Fund, Kurisani Solafrica Investments and Solafrica Community Investment Company. The community shareholding will reportedly represent 10% of the project.
In addition, Investec, the Development Bank of Southern Africa and the IDC will provide the debt funding requirements of the project.
ACWA’s subsidiary NOMAC will operate the plant, which will be constructed by an engineering, procurement and construction consortium comprising TSK Electrónica y Electricidad, Acciona Infraestructuras, Acciona Ingeniería, Sener Ingeniería y Sistemas, all of Spain, as well as Crowie Concessions, of South Africa.
The Department of Energy expects the facility to incorporate 36,5% local content, create 662 construction jobs and 50 operational posts. It also expects the plant to deliver power at a cost of R2.51/kWh.
The greenfield development is one of several REIPPP projects being supported by the State-owned IDC, and it was the only CSP project to advance to the preferred-bidder stage during the second bid window.
During window one, two projects (the 100 MW KaXu Solar One and the 50 MW Khi Solar One, which are being developed by Abengoa and the IDC) advanced. The three projects have also absorbed the full 200 MW allocated to CSP under REIPPP.
Over the first two rounds the IDC supported a total of 36 bidders, of which 19 were named as preferred bidders – the window-one projects are due to reach financial closure by June 19, while those announced on May 21 have until December to reach closure.
The South African development finance institution has set aside R25-billion for various green projects over the coming five years, including the REIPPP projects that are meant to add 3 725 MW of renewable energy capacity to the South African grid by 2016.
The targeted financial close date for Bokpoort is the end of 2012, with the developers having set a commercial operation date for the third quarter of 2015.
The project will reportedly be equipped with the largest thermal storage capacity adopted for a CSP plant of its size, which should enable it to produce 200 GWh/y.
Padmanathan says ACWA has also sought to maximise BEE participation and that IAE will not only contribute local knowledge but also provide a platform for its skills-transfer plans.
IAE chairperson Enver Asmal says the project confirms and extends its longstanding collaboration with ACWA Power in the development of power projects in Southern Africa and will enable it to gain valuable power sector experience.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Electricity News
Updated 2 hours 28 minutes ago South Africa’s financial institutions have been instrumental in funding the bulk of the projects under the Department of Energy’s multibillion-rand Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), delegates heard at the Solar Indaba, in...
Updated 2 hours 31 minutes ago The Department of Energy (DoE) reported on Thursday night that it had concluded its first “nuclear vendor parade workshop” with a delegation from the Russian Federation and that further meetings were planned with vendor countries such as France, China, South Korea,...
Updated 1 hour 32 minutes ago Communications Deputy Minister Stella Ndabeni-Abrahams says the Department of Communications has the responsibility of ensuring that South Africans migrate from the analogue to digital world, with the help of media and government communicators. Deputy Minister...
Updated 2 hours 29 minutes ago South Africa’s financial institutions have been instrumental in funding the bulk of the projects under the Department of Energy’s multibillion-rand Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), delegates heard at the Solar Indaba, in...
Updated 2 hours 32 minutes ago The Department of Energy (DoE) reported on Thursday night that it had concluded its first “nuclear vendor parade workshop” with a delegation from the Russian Federation and that further meetings were planned with vendor countries such as France, China, South Korea,...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...