https://www.engineeringnews.co.za

Company to build 36 MW CPV plant for REIPPP

14th December 2012

By: Anine Kilian

Contributing Editor Online

  

Font size: - +

Renewable-energy company Pele Green Energy, one of the 28 preferred bidders in the first round of South Africa’s Renewable Energy Independent Power Producer Programme (REIPPP), has started construction this month of a 36 MW solar concentrated photovoltaic (CPV) power plant in the Western Cape.

Construction of the R1.8-billion plant, which will be one of the largest solar CPV plants in the world, will take 14 months to complete.

JSE-listed Group Five is the engineering, procurement and construction (EPC) contractor.

“The construction deadline has been extended but we are still aiming to reach completion by June 24, 2014, as government has incentivised all companies involved in the first round to start feeding power into the national grid as early as possible.

“Once the plant is 50% complete, we can start feeding power into the grid,” says Pele Green Energy executive director Obakeng Moloabi.

He states that solar panel manufacturer Soitec will provide third-generation technology CPV solar panels for the plant.

“Solar panels that use third-generation technology are currently more expensive to produce than those featuring first-generation technology, which are based on monocrystalline solar cells and polycrystalline solar cells to harness the power of the sun, but have higher efficiency, which allows for greater power generation.

“Most PV plants use a combination of first- and second-generation technology, which is largely made of thin film and monocrystalline solar cells and polycrystalline solar cells,” he says.

Moloabi adds that first- and second-generation PV plants are currently capped at an efficiency of 15% to 18%, while third-generation technology delivers an efficiency of 27% to 30%.

“Currently, there are fully tested units that are capable of operating at 35% efficiency. “We expect the technology, which is currently in various phases of testing, to reach 40% efficiency in the coming years,” he says.

He further points out that the 36 MW power plant will use dual- access trackers instead of a simple mounted PV structure or a single access tracker, which means the panels can follow the sun all day in not only a linear direction, which, in turn, increases their efficiency.

He notes that the location of the solar CPV plant is highly significant, as most of the country’s energy is currently generated by coal-fired power stations in Mpumalanga.

“The solar CPV project will further contribute to grid stability by generating power closer to the coast, where a lot of power is squandered through electricity transmission losses when electricity is sent from the Highveld to coastal areas,” he says.

Funding
Pele Green Energy executive director Gqi Raoleka notes that typically 70% of the capital expenditure for these projects is funded through debt and the balance through equity.

“South African banks have been very forthcoming, providing the bulk of the debt that goes into project financing trans- actions. On the equity side, we have had a lot of support from the development finance institutions, such as the Industrial Development Corporation and the Development Bank of Southern Africa,” he says.

Raoleka notes that last month’s signing of the power purchase agreement and implementation agreement allowed for the key conditions precedent to be fulfilled, and adds that the 28 bidders will each now follow their own timetable that was agreed with the Department of Energy to reach commercial operation for each power plant.

Pele Green Energy executive director Fumani Mthembi states that preferential procurement is part of the REIPPP framework and Pele Green Energy has split its preferential procurement into three categories.

“Thirty per cent will go towards broad-based black economic-empowerment companies, qualifying small enterprises will make up 2% and women-owned vendors will make up 5%.

“We feel positive as so much is being spent on local companies and locally manufactured goods,” she says.

Mthembi adds that Pele Green Energy owns 35% of the solar CPV power plant and a community trust owns 5%.

Community

“We will invest 1.6% of the plants yearly revenue in the community of Touwsrivier. This will be split between enterprise and socioeconomic development initiatives, which will be allocated 0.6% and 1% respectively. This is to grow the local economy of Touwsrivier,” Mthembi says.

“We are in the process of setting up a bursary fund to assist people in the community with tertiary education. We will also assist the community in gaining access to markets by connecting them to value chains that will enhance growth for local businesses. “We have also provided additional finance for community members through the community trust, through which they will be able to earn dividends throughout the life of the project and also make their own decisions on how they would like to give back to the community, which consists of about 7 000 people,” says Mthembi.
Pele Green Energy plans to submit bids for further power plants in the third round of the REIPPP in 2013.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Alco-Safe
Alco-Safe

An unmanned breathalyser that is made to be tough and simple to use. Can be used in any environment for operator-free breathalyser testing.

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.569 0.627s - 160pq - 4rq
Subscribe Now