http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.85Change: 0.03
R/$ = 10.93Change: 0.05
Au 1231.31 $/ozChange: -0.06
Pt 1248.50 $/ozChange: -1.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Nov 06, 2013

60 MW Free State solar project secures R1.8bn from US development agency

Back
Engineering|Africa|Components|Nehawu Investment Holdings|New York Stock Exchange|Overseas Private Investment Corporation|PROJECT|Projects|Public Investment Corporation|Renewable Energy|Renewable-Energy|SunEdison|Africa|Bulgaria|Chile|India|South Africa|United States|USD|Development Finance|Electricity|Energy|Manufacturing|Service|Solar Energy|Technology Platforms|Davin Chown|Dikobe Ben Martins|Elizabeth Littlefield|Pashupathy Gopalan|Power|Limpopo|South Asia
Engineering|Africa|Components|PROJECT|Projects|Renewable Energy|Renewable-Energy||Africa|||Energy|Manufacturing|Service||Power||
engineering|africa-company|components|nehawu-investment-holdings|new-york-stock-exchange|overseas-private-investment-corporation|project|projects|public-investment-corporation|renewable-energy|renewable-energy-company|sunedison|africa|bulgaria|chile|india|south-africa|united-states|usd|development-finance|electricity|energy|manufacturing|service|solar-energy|technology-platforms|davin-chown|dikobe-ben-martins|elizabeth-littlefield|pashupathy-gopalan|power|limpopo|south-asia-region
More Insight
© Reuse this



Solar energy group SunEdison announced on Wednesday that it had secured R1.8-billion in development finance from the US government’s Overseas Private Investment Corporation (OPIC) for its 60 MW Boshoff solar park project, being developed in South Africa’s Free State province.

The foreign-debt funding, which was facilitated by Absa, amounts to 75% of the R2.4-billion project cost, with the balance of the funding derived from the equity participants.

New York Stock Exchange-listed SunEdison has a 51% stake, with the other owners being the Public Investment Corporation (19%), Nehawu Investment Holdings (20%) and a community trust administered by Kurisani, the investment arm of loveLife (10%).

Boshoff is also the first South African project being developed by SunEdison to have received OPIC support. However, its global project portfolio has benefited to the tune of around $400-million in countries such as Bulgaria, Chile and India.

The plant, which was selected during the second bid window under the Department of Energy’s (DoE’s) Renewable Energy Independent Power Producer Procurement Programme, will be SunEdison’s third in South Africa and is scheduled to begin generating electricity in the fourth quarter of 2014.

Its other two plants, the 28 MW Soutpan and the 30 MW Witkop project, are both located in the Limpopo province and should begin producing in early 2014.

South Asia and sub-Saharan Africa VP Pashupathy Gopalan tells Engineering News Online that the company also submitted several bids during the highly contested third bid window, but none of its projects were listed among the six solar photovoltaic (PV) projects appointed on October 29.

In total, 17 renewable-energy preferred bidders have been appointed across the various technology platforms from 93 bids received by the August 19 closing date.

Gopalan is still hopeful that some of the group’s projects could yet be added to the list of third-window bidders should the DoE decide to approve additional projects.

Energy Minister Dikobe Ben Martins has reported that government is giving serious consideration to the possible extension of the list of bidders and that a decision should be made known in the not too distant future.

Gopalan believes it would be in South Africa’s interest to extend the bidders list, owing to the competitive nature of the offers, as well as the possibility that module prices could begin to rise as the global supply/demand balance begins to even out as a result of manufacturing rationalisation and demand growth.

He is supported in this view by the South African Photovoltaic Industry Association chairperson Davin Chown, who says that the eligible projects offer good value for the country, noting that the prices have fallen materially since round two.

The six successful solar PV bidders, which shared an allocation of 435 MW, were particularly aggressive with their pricing. Fully indexed prices, using April 2011 as the base year, showed that the average solar PV price fell from R2.75/kWh in bid-window one to 88c/kWh in the third round.

Gopalan adds that the localisation aspects of the programme have also improved, with Boshof set to be supplied by a South African majority-owned PV module manufacturer, which has yet to be selected.

About 50% of the project’s total value will go to South African manufacturers and service providers, but many of the key components will be imported.

OPIC president and CEO Elizabeth Littlefield said the agency was “pleased to be supporting a project that will provide a clean and reliable source of electricity and help stimulate economic development”.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Swedish Ambassador to South Africa Christian Meuwly will next week inaugurate the final roll-out of the new vertical shaft brick kiln (VSBK) at clay brick manufacturer Langkloof Bricks’ facility in Jeffrey’s Bay. The VSBK formed a part of economic, social and...
Hot on the heels of the launch of Rustenburg’s rapid transport system’s brand name and logo last week, a negotiation framework agreement (NFA) has been formally agreed to and signed by the Rustenburg Local Municipality (RLM) and taxi and bus operators affected by the...
The runway at the George Airport, in the Western Cape, has been rehabilitated to improve safety, in terms of run-off and storm water drainage, and the structural capacity of the pavement surface. The scope of work comprised the extension of Runway 11/29, the...
More
 
 
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...
MORNÉ DU PLESSIS Increased urgency and burgeoning awareness of the importance of these issues are beginning to change political risks and, thus, State responses to environmental concerns
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...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks