http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 12.92Change: 0.12
R/$ = 11.99Change: 0.14
Au 1203.52 $/ozChange: -3.38
Pt 1162.50 $/ozChange: -4.00
 
 
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 Letters 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
© 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
State-owned power utility Eskom and Public Enterprises Minister Lynne Brown confirmed on Wednesday that contracts under the so-called short-term power purchase programme (STPPP) had been renewed ahead of the March 31, 2015, expiry date. Eskom told Engineering News...
The value of copper stolen in February decreased to R12.7-million, from R12.9-million in January, but was 18.1% higher than the value of copper stolen in February 2014, the South African Chamber of Commerce and Industry (Sacci) revealed on Wednesday. In its latest...
Paper and packaging group Mpact has concluded a broad-based black-economic empowerment (BBBEE) deal that will see a purpose-formed trust subscribing for 10% of the ordinary issued shares in group subsidiary Mpact Operations, which holds its South African businesses....
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
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.
 
 
 
 
 
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96