Jun 05, 2012
50 MW SA solar project part of Saudi group’s diversification driveBack
Construction|ACWA Power International|Africa|Development Bank Of Southern Africa|Engineering|Industrial|Industrial Development Corporation|Investec|Kurisani Solafrica Investments|Power|PROJECT|Projects|Renewable Energy|Renewable-Energy|Solafrica Community Investment Company|Solar|Storage|Sustainable|Water|Africa|Jordan|Oman|Saudi Arabia|South Africa|Spain|Turkey|Debt Funding Requirements|Energy|Power Generation|Power-generation|Northern Cape|Enver Asmal
© 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
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Other Electricity News
Article contains comments
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
This Week's Magazine
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.