Name of the Project
Kangnas Wind Farm and Perdekraal East Wind Farm.

Location
The Kangnas Wind Farm is located near Springbok, in South Africa’s Northern Cape province. The Perdekraal East Wind Farm is located 80 km north-east of Ceres, in South Africa’s Western Cape province.

Client
The equity members of the projects include African Rainbow Energy & Power; H1 Holdings; local community members through established community trusts, with shareholding funded by other project equity partners; Lekela; Mainstream Renewable Power, along with a consortium of investors, such as the International Finance Corporation and the Rockefeller Brothers Fund; and Old Mutual Life Assurance Company.

Project Description
The project entails the construction of two wind farms with a combined capacity of 250 MW.

Kangnas will have a 140 MW capacity and Perdekraal East a 110 MW capacity.

Perdekraal will generate about 368.8 GWh/y, which is expected to be enough power for up to 95 000 South African homes.

The projects were awarded under the South African Department of Energy’s fourth round of the Renewable Energy Independent Power Producer Procurement Programme.

Potential Job Creation
During the construction phase of Perdekraal East Wind Farm, local communities will have access to skills and training opportunities, as well as greater job and business opportunities than were previously available in the area. Perdekraal and its contractors will also focus on procuring goods and services locally.

Employment will fluctuate over Perdekraal’s two-year construction period, with local employment peaking during the latter half of 2018, when an estimated 150 jobs will be created.

Value
The projects represent an investment of about R6.6-billion.

Duration
The projects were expected to start construction in June 2018.

Perdekraal is expected to be completed in late 2020.

Latest Developments
The R3.1-billion Perdekraal East Wind Farm has started work on its electrical distribution network, edging closer to make an impact on not only the national grid but also on the economies of surrounding communities.

Since achieving financial closure in June, the construction team has also worked on establishing on-site infrastructure and the clearing and grubbing of roads. The team completed the excavation of four foundations at the end of September and is preparing to build 42 km of road on site.

To ensure that public infrastructure does not undergo significant deterioration because of construction activities, Perdekraal will restore municipal roads to their preconstruction conditions to the satisfaction of local authorities. “Some municipal roads currently already requiring structural repairs and/or enhancement will undergo appropriate upgrades in due course. Affected roadside ditches and drains will, if required, be repaired and monitored to ensure that they are functioning properly,” construction project manager Glenn Hobson has said.

Over its 20-year operating life, the wind farm will eliminate about 410 000 t/y of carbon emissions, compared with traditional fossil fuel power plants. In addition to contributing zero carbon emissions and the reduction of fossil fuel consumption, Perdekraal will further benefit South Africa through minimal water use in its power generation process and significant social and enterprise development programmes.

“Employment opportunities, skills development, socioeconomic development and enterprise development are just some of the ways local communities in Ceres, Nduli, Bella Vista and Prince Alfred Hamlet will benefit during the wind farm’s operational period,” notes Hobson.

During this period, 2.8% of the wind farm’s revenue will be spent on socioeconomic development and 0.2% on enterprise development. In addition, 2.5% of Perdekraal East Wind Farm is owned by Perdekraal East Community Trust, through which community social welfare development programmes are invested to the benefit of beneficiary communities.

Key Contracts and Suppliers
Absa (debt); Simmons & Simmons and White & Case (lenders’ legal adviser); Fasken and Stoel Rives (sponsor legal counsel); Concor and Conco (construction contractor) and Siemens Gamesa Renewable Energy (supply and installation of wind turbines).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Mainstream Renewable Power, tel +27 21 657 4040.
H1 Holdings, tel +27 21 201 6432 or email info@h1holdings.co.za.
Lekela, tel +44 203 301 6280 or email info@lekela.com.