Name and Location
Department of Energy (DoE) peaker projects, South Africa.

Client
DoE.

Project Description
The project involves the construction of two greenfield open-cycle gas turbine (OCGT) power plants of 342 MW (Dedisa) and 685 MW (Avon), in the Eastern Cape and KwaZulu-Natal respectively, with a combined capacity of 1 005 MW.

The power generated by the two OCGT power plants will be sold to State-owned utility Eskom under a 15-year power purchase agreement (PPA).

The plants are located adjacent to existing high-voltage Eskom substations, with the electricity being fed into the transmission system at 275 kV and 400 kV respectively.

Each facility will also have on-site fuel and water storage for a continuous 45-hours of full-load operations.

The two plants were developed under a build, own and operate contract awarded to a consortium comprising France’s ENGIE (formerly GDF SUEZ), Legend Power Solutions, Mitsui & Co and the Peaker Trust, which is acting on behalf of the local community.

A consortium comprising power engineering company Ansaldo Energia and engineering and construction company Fata, was responsible for the engineering, procurement and construction (EPC) and commissioning of the two projects.

Ansaldo managed the civil works, power island supply, construction and commissioning, while Fata managed the EPC and commissioning of the balance of plant and electromechanical installation works.

Value
The total investment cost for the two plants is R10-billion.

Duration
Construction started in 2013 and the first plant entered commercial operation in 2015.

Latest Developments
Avon peaking power plant, near Durban, has started operating commercially, following in the footsteps of the smaller Dedisa peaking power plant, in the Coega industrial development zone, in Port Elizabeth, which entered commercial operation last year.

The plants were the first large-scale independent thermal plants to be developed in South Africa outside of Eskom.

Key Contracts and Suppliers
GDF SUEZ consortium, comprising GDF SUEZ (38%), Legend Power Solutions, of South Africa (27%), Mitsui & Company, of Japan (25%), and the Peaker Trust (10%) of South Africa, representing black economic-empowerment and community interests (build, own and operate contract); Ansaldo Energia and Fata (turnkey EPC) and Merz and McLellan (owner’s engineer).

On Budget and on Time?
The peaker projects have been subjected to several delays, with the DoE having initially selected an AES-led consortium as the preferred bidder, before terminating talks in April 2008. Negotiations were subsequently launched with the GDF SUEZ-led consortium.

The DoE eventually awarded the contract to the GDF SUEZ.

Contact Details for Project Information
DoE spokesperson Thandiwe Maimane, tel +27 12 406 7470, fax +27 86 615 6949 or email MediaDesk@energy.gov.za.
GDF Suez, tel +33 1 44 22 66 29 or email ir@gdfsuez.com.
Ansaldo Energia, tel + 39 010 6551 or fax + 39 010 6553411.
Fata, tel +39 011 96681 or fax +39 011 9672 673.
Merz and McLellan, Jo Reeves, cell + 27 76 984 4485.