Name and Location
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) - first window, South Africa.

Client
Department of Energy (DoE).

Project Description
The REIPPPP projects are among an initial batch of 53 bids submitted for the November 2011 bid window and represent a potential capacity of 1 415.52 MW and potential investment of billions of rands.

The preferred bidders include 18 solar photovoltaic (PV) projects, eight onshore wind projects and two concentrating solar power (CSP) projects.

The PV projects named are:
• SlimSun Swartland solar park (5 MW)
• Rustmo1 solar farm (6.76 MW)
• Mulilo Renewable Energy Solar PV De Aar (9.65 MW)
• Konkoonsies Solar (9.65 MW)
• Aries Solar (9.65 MW)
• Greefspan power plant (10 MW)
• Herbert PV power plant (19.9 MW)
• Mulilo Renewable Energy Solar PV Prieska (19.93 MW)
• Soutpan solar park (28 MW)
• Witkop solar park (30 MW)
• Touwsrivier project (36 MW)
• De Aar solar PV (48.25 MW)
• South African Mainstream Renewable Power Droogfontein project (48.25 MW)
• Letsatsi Power Company (64 MW)
• Lesedi Power Company (64 MW)
• Kalkbult project (72.5 MW)
• Kathu solar energy facility (75 MW)
• Solar Capital De Aar (75 MW)

The combined capacity of the solar PV projects that progressed through to the preferred-bidder stage was 631.53 MW.

The wind projects listed include:
• Dassiesklip wind energy facility (26.19 MW)
• MetroWind Van Stadens wind farm (26.19 MW)
• Hopefield wind farm (65.40 MW)
• Noblesfontaine (72.75 MW)
• Red Cap Kouga wind farm – Oyster Bay (77.6 MW)
• Dorper wind farm (97 MW)
• Jeffreys Bay project (133.86 MW)
• Cookhouse wind farm (135 MW)

The wind projects represent a combined capacity of 633.99 MW.

The two solar CSP projects named were Khi Solar One (50 MW) and KaXu Solar One (100 MW). The DoE aims to produce 1 850 MW of onshore wind, 1 450 MW of solar PV, 200 MW of CSP, 75 MW of small hydro, 25 MW of landfill gas and 12.5 MW apiece of biomass and biogas capacity.

Value
The projects represent a total investment value of about R47-billion.

Duration
Under the original schedule, these first-bid-window projects were expected to reach financial closure by mid-June 2012. The process was delayed to enable government to finalise a support framework for Eskom, which would purchase the power produced by the independent power producers (IPPs). Financial closure is now scheduled for November 5.

Latest Developments
The PV projects:
This first phase of Slimsun’s Swartland solar park project has been permitted and has reached financial close, with a scheduled commercial operations date of July 2014. The second 17 MW phase is still under development.

Momentous Energy’s RustMo1 solar farm, located about 22 km outside Rustenburg, in the North West, has been launched and is expected to supply 7 MW of power to the national power grid once it becomes fully operational in November.

Globeleq’s Droogfontein and De Aar solar power projects received two high-voltage (HV) transformers in August, which will enable them to connect to State-owned power utility Eskom’s network in April 2014.

The transformers will increase the voltage supplied from the inverter transformers of the plants from 33 kV to 132 kV to connect to the Eskom line.

The transformers were manufactured by electrical equipment company Siemens, in Portugal, and took almost a year to manufacture.

Both projects are on schedule and within budget and are expected to start commercial operation in April 2014.

Siemens is the engineering, procurement and construction contractor for the projects and will provide maintenance services for the first five years of operation.

BioTherm Energy’s Konkoonsies and Aries solar facilities, in the Northern Cape,  each with a capacity of 10 MW, reached financial close in November 2012 and are under construction.

AE-AMD Renewable Energy – a joint venture between Spain-based AMDA Energia and South Africa-based Alt-E Technologies – and Tenesol, a SunPower subsidiary, are working on the Herbert (22 MW) and Greefspan (11 MW) ground-mounted PV projects, in the Northern Cape. Both projects will feature 130 000 Tenesol TE 240 PV solar panels on single-axis trackers. The projects are expected to be completed in the second quarter of 2014.

SunEdison’s Soutpan (28 MW) and Witkop (30 MW) solar parks are expected to interconnect in January 2014 and April 2014 respectively. 

Soitec concluded a R1-billion bond issuance to finance the construction of the Touwsrivier solar plant, in the Western Cape, in May.

Solar Reserve’s Lesedi and Letsatsi projects reached financial in November of 2012 and have each signed 20-year power purchase agreements with Eskom. The combined cost to implement the projects is estimated at R5.15-billion. Construction at Lesedi began in January this year and at Letsatsi in February. The projects are expected to be completed by mid-2014.

Scatec Solar South Africa’s has reported sound progress on its 75 MW Kalkbult project, in the Northern Cape. The plant is scheduled for completion in October this year, almost two months ahead of schedule.

Construction company WBHO and Italian renewable-energy developer and operator Building Energy’s Kathu solar PV park has been described as one of the largest solar projects worldwide, incorporating single-axis tracking technology. In May this year, ABB won an order worth about $25-million to supply electrical and control systems for the plant. ABB will be responsible for the design, engineering, supply, installation and commissioning of the project.

The wind projects:
BioTherm Energy’s Dassiesklip wind energy project will be built on 350 ha, about 5 km west of Caledon, in the Western Cape. The facility will include nine 3 MW turbines with a total capacity of 27 MW. The project reached financial closure in November 2012.

At the MetroWind Van Stadens’ wind farm project, in the Eastern Cape, engineering and construction have started.

Lead engineering, procurement and construction (EPC) contractor Basil Read Matomo, which was awarded the R475-million EPC contract in November 2012, has progressed civil works at the site and the roads and turbine platforms have been completed.

The components for the wind turbines were transported by road to the site between the last week of June and early July, as the company arranged the movement of nine nacelles, 27 blades and nine towers to the site, 57 km from the port.

The firm started erecting the nine SL3000 3 MW turbines in mid-July. The turbines arrived on June 5 and 11 from Sinovel Wind Group, based in China, and completion is expected by October.

Umoya Energy’s Hopefield wind farm will consist of thirty-seven 1.8 MW wind turbines. The first shipment of wind turbines for the project arrived at the port of Saldanha on June 26.

Gestamp Wind signed a power purchase agreement for the Nobelsfontaine wind farm project with the Department of Energy in November 2012. The project involves investment of € 120-million. It is expected to be in operation in this year.

The Red Cap Kouga Wind Farm project is changing its name to the Kouga wind farm.

Meanwhile, the main electrical work on the project was expected to start in July and be completed by November next year.

The wind turbines are expected to be delivered from about November 2013 until about May 2014, but will only start arriving on site from about January 2014.

The erection of the turbines is expected to start the following month and end in August, with commissioning of the turbines expected from June to October.

The wind farm is expected to be substantially completed by November.

Rainmaker Energy’s Dorper wind farm project, in the Eastern Cape, is expected to generate 100 MW of energy.

Globeleq’s Jeffreys Bay wind farm project, in the Eastern Cape, will comprise 60 Siemens SWT 2.3 MW wind turbines. The project is in the design and construction phase, with the civil and electrical engineering design mostly complete. The operators have started transporting the turbine components from the Port of Ngqura to the 3 700 ha site, near Humansdorp.

Final completion is expected in April 2014.

The first consignment of 16 turbines for African Clean Energy Developments’ Cookhouse wind farm arrived at the Port of Ngqura, near Port Elizabeth, in the Eastern Cape, in April this year.  The wind farm will comprise 66 Suzlon 2.1 MW turbines, with a combined installed capacity of 138.6 MW.

CSP projects:
Abengoa’s Khi Solar One and KaXu Solar One CSP projects, located in the Northern Cape, near Upington and Pofadder respectively, will be the first CSP plants in South Africa and will use advanced technology specifically developed for the country’s needs. Both plants will be able to store energy and generate power after sunset.

Key Contracts and Suppliers
Arup (lender’s technical adviser or owner’s engineer), Robor (steel), ACS Cobra, Gransolar and Kensani Energy (EPC construction work for Letsatsi and Lesedi solar PV projects).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
DoE departmental spokesperson Thandiwe Maimane, tel +27 12 444 4256, cell +27 82 450 8591, fax +27 86 581 8505 or email MediaDesk@energy.gov.za.

Companies involved in the REIPPPP:
Cennergi CEO Thomas Garner, tel +27 12 675 6669 or email Thomas.Garner@cennergi.com.
Windlab Developments South Africa, Peter Venn, +27 21 7011292 or email peter.venn@windlab.com.
Globeleq, tel +44 20 7 234 5400, fax +44 20 7 234 5486 or email info@globeleq.com.
Siemens Southern Africa media relations, Hulisani Nemaxwi, tel + 27 11 652 2000 or email hulisani.nemaxwi@siemens.com.
Thebe Investment Corporation, tel +27 11 447 7800, fax +27 11 447 5502 or email info@thebe.co.za.
Enzani Technologies, tel +27 11 835 1880, fax +27 11 835 1885 or email info@enzani.co.za.
Usizo Engineering, tel +27 11 609 7560 or fax +27 11 609 7518.
Murray & Roberts Construction, tel +27 11 456 6200, fax +27 11 455 2222 or email info@murrob.com.
Consolidated Power Projects, tel +27 11 805 4281 or fax +27 11 805 1132.
SunEdison, tel +1 866 786 3347 or fax +1 443 909 7150.
ABB group media relations, tel +41 43 317 6568 or email media.realtions@ch.abb.com.
Suzlon, tel +91 20 4012 2000, fax +91 20 4012 2100/2200 or email suzloncorpcomm@suzlon.com.
Soitech media contact Camille Darnaud-Dufour, tel +33 6 79 49 51 43 or
email camille.darnaud-dufour@soitech.com, or investor relations, Olivier Brice, tel +33 4 76 92 93 80 or email olivier.brice@soitech.com.
Solar Capital, tel +27 21 430 0796, fax +27 21 430 0795/+27 86 538 8365 or email paschal@solarcapital.com.
Momentous Energy, tel +27 87 741 1006, fax +27 86 599 2401 or email enquiries@momentousenergy.com.
Inspired Evolution, Christopher Clarke, tel +27 21 702 1290, cell +27 82 496 0522, fax +27 21 702 1483 or email chris@inspiredevolution.co.za.
Rainmaker Energy, tel +27 11 486 4488, fax +27 86 582 1792 or email wind@rainmakerenergy.co.za.
Mainstream Renewable Power tel +27 21 657 4040 or email Info-southafrica@mainstreamrp.com.
Scatec Solar commercial director Zola Mkumla, email zola.mkumla@scatecsolar.com.
Abengoa Solar communications department contact Patricia Malo de Molina Meléndez, tel +34 954 93 7111 or email communication@abengoa.com, or investor relations contact Bárbara Zubiría Furest, tel +34 954 937 111
or email ir@abengoa.com.
Umoya Energy, Douglas Jenman, tel +27 21 670 1242, cell +27 82 415 2515 or fax +27 21 670 1220 or
email douglas.jenman@macguarie.com.
BioTherm Energy, tel +27 11 367 4600, fax +27 11 367 4601 or email info@biothermenergy.com.
Red Cap, tel +27 21 790 1392, fax +27 86 609 9261 or email info@red-cap.co.za.
Aurora Power Solutions, tel +27 21 421 9764, fax +27 865 138 648 or email info@apsolutions.co.za.
Mulilo Renewable Energy, tel +27 21 934 5268, fax +27 21 935 0505/+27 86 635 6809 or email info@mulilo.com.
Gestamp, tel +34 91 636 19 94 or email info@gestampren.com.
Arup, Damane Hlalele, tel +27 21 409 3500 or email capetown@arup.com.
Robor, tel +27 11 971 1600, fax +27 11 392 4435, email  headoffice@robor.co.za or info@robor.co.za.
ACS Cobra, tel +34 91 456 95 00, +34 91 456 94 50 or email central@grupocobra.com.
Gransolar, tel +34 91 736 42 48, +34 91 734 14 61 or email madrid@gransolar.com
Kensani Group, Coenraad Krige, tel +27 21 674 0304, fax +27 21 683 0577 or email Coenraad@kensanicapital.co.za.
Intikon Energy, Stephen Donnelly, email Stephen.donnelly@intikon.com.