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|Sustainable|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 1 hour 30 minutes ago Power utility Eskom would again be implementing stage one load shedding between 10:00 and 22:00 on Wednesday, to enable it to manage dam levels at its pumped storage schemes. “At our pumped storage schemes, our dam levels are low because we were not able to pump the...
Updated 1 hour 58 minutes ago The rand remained on the back foot against the dollar on Wednesday after weakening to 1-week lows overnight, as investors fretted about the impact of South Africa's electricity shortage on economic growth. At 0636 GMT, the rand traded at 11.5800 per dollar, within a...
Updated 2 hours 20 minutes ago General Electric Co (GE) will build a 1 200 MW thermal power plant in Ghana to come onstream in the next five years in a bid to address the West African country's power deficit, CE Jeff Immelt said on Tuesday. The US company will also provide emergency power systems...
Updated 44 minutes ago South Africa has lost R700-billion to corruption over the last 20 years, the Institute of Internal Auditors said on Wednesday. "The cost of corruption in the last 20 years... we have lost R700-billion," CEO Claudelle von Eck said at the launch of the...
Updated 1 hour 11 minutes ago Yinson Holdings, Malaysia's oil and gas services firm, said on Wednesday it secured a $2.54-billion floating production, storage and offloading (FPSO) vessel charter contract for oil and gas support operations in Ghana. Yinson said it won the contract, for a firm...
Updated 1 hour 24 minutes ago Power utility Eskom would again be implementing stage one load shedding between 10:00 and 22:00 on Wednesday, to enable it to manage dam levels at its pumped storage schemes. “At our pumped storage schemes, our dam levels are low because we were not able to pump the...
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
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.
This Week's Magazine
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...