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Renewable Energy Independent Power Producer Procurement Programme – first window, South Africa

26th August 2016

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name of the Project
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) – first window.

Location
South Africa.

Client
Department of Energy (DoE).

Project Description
The REIPPPP first-round 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 nearly R50-billion.

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

The solar 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 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 Power (85 MW)
• Droogfontein Solar Power (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)
• Noblesfontein wind farm (72.75 MW)
• Red Cap Kouga wind farm – Oyster Bay (77.6 MW)
• Dorper wind farm (97 MW)
• Jeffreys Bay wind farm (133.86 MW)
• Cookhouse wind farm (135 MW).

The wind projects represent a combined capacity of 633.99 MW.

The two CSP projects named were:
• Khi Solar One (50 MW)
• KaXu Solar One (100 MW).

The CSP projects represent a combined capacity of 150 MW.

During this and subsequent rounds of the REIPPPP, the DoE aims to procure 1 450 MW of solar PV, 1 850 MW of onshore wind, 200 MW of CSP, 75 MW of small hydro, 25 MW of landfill gas and 12.5 MW apiece of biomass and biogas capacity.

Jobs to be created
Not stated.

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 State-owned power company Eskom, which would buy the power produced by the independent power producers (IPPs). Financial closure was rescheduled for November 5, 2014.

Latest Developments
Solar PV projects
SlimSun’s Swartland solar park project in Malmesbury, in the Western Cape, with a projected energy yield of 10.5-million kilowatt hours a year was connected to the grid in June 2015.

Momentous Energy announced in February 2014 that its 6.76 MWp Rustmo1 solar PV project, in Rustenburg, in the North West, had been completed and was connected to Eskom’s electricity grid through a new 22/88 kW substation.

Globeleq’s Droogfontein Solar Power and De Aar Solar Power projects, in the Northern Cape, were inaugurated in August 2014.

BioTherm Energy’s Aries and Konkoonsies solar PV energy facilities, in the Northern Cape, started delivering electricity to the grid in December 2013 and reached commercial operation on March 2, 2014, delivering a combined 20 MW of electricity to the national grid.

AE-AMD Renewable Energy – a joint venture between Spain-based AMDA Energia and South Africa-based Alt-E Technologies – and Tenesol, a SunPower subsidiary, have completed the Herbert (22 MW) and Greefspan (11 MW) ground-mounted solar projects and are feeding 33 MW into the grid.

SunEdison’s Soutpan (28 MW) and Witkop (30 MW) solar parks started producing electricity in January 2014 and April 2014 respectively.

Soitec announced in March 2014 that the Touwsrivier solar power plant had successfully reached the milestones set for the commissioning of 50% of the project’s total capacity.

Solar Reserve announced in May 2014 that its Lesedi and Letsatsi projects, in the Northern Cape and the Free State respectively, had been completed and were fully operational.

Scatec Solar South Africa’s 75 MW Kalkbult project, in the Northern Cape, officially opened on November 12, 2013. Connected three months ahead of schedule, it was the first grid-connected and operational REIPPPP project in South Africa.

Construction company Wilson Bayly Holmes-Ovcon and Italian renewable-energy developer and operator Building Energy’s 81 MW Kathu 1 solar PV project has been completed, with the Kathu 2 solar PV project currently under development.

Wind projects
BioTherm Energy’s Dassiesklip wind energy project started to export power to the Eskom grid on December 19, 2014, when the first turbine entered the performance-testing phase.

The 27 MW MetroWind Van Stadens wind farm officially started commercial operations in February 2014. The facility, which is located in the Nelson Mandela Bay municipal area of the Eastern Cape, has been supplying power into the regional grid since late November 2014, but the ‘facility completion’ milestone was officially reached on February 2, 2015.

Umoya Energy’s Hopefield wind farm, which comprises thirty-seven 1.8 MW wind turbines, achieved commercial operation in February 2014.

Gestamp Wind’s Noblesfontein wind farm became operational on time and within its R1.5-billion budget, during the second quarter of 2014.

Red Cap’s Kouga wind farm, in the Eastern Cape, started commercial operation in March 2015.

Rainmaker Energy’s estimated R2-billion Dorper wind farm, in the Eastern Cape, reached steady-state electricity feed-in in May 2015.

Globeleq’s Jeffreys Bay wind farm, in the Eastern Cape, was inaugurated on July 9, 2014.

African Clean Energy Developments’ Cookhouse wind farm, in the Eastern Cape, reached commercial operations in December 2014.

CSP projects
The construction of Abengoa’s 50 MW Khi Solar One tower, in Upington, in the Northern Cape, was completed in August 2013.  The plant will use advanced technology specifically developed for South Africa’s needs. The plant, along with the company’s 100 MW KaXu Solar One plant, in Poffadder, also in the Northern Cape, which opened in March 2015, will be able to store energy and generate power after sunset.

Key Contracts and Suppliers
Cennergi, Windlab Developments South Africa, Globeleq, Siemens Southern Africa, Thebe Investment Corporation, Enzani Technologies, Usizo Engineering, Murray & Roberts Construction, Consolidated Power Projects, SunEdison, ABB, Suzlon, Soitech, Solar Capital, Momentous Energy, Inspired Evolution, Rainmaker Energy, Mainstream Renewable Power, Scatec Solar, Abengoa Solar, Umoya Energy, BioTherm Energy, Red Cap, Aurora Power Solutions, Mulilo Renewable Energy, Gestamp, Arup, Robor, ACS Cobra, Gransola, Kensani Group and Intikon Energy.

On Budget and on Time?
All the projects have reached commercial operation.

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 first window
Cennergi CEO Thomas Garner, tel +27 12 675 6669 or email Thomas.Garner@cennergi.com.
Windlab Developments South Africa, Peter Venn, tel +27 21 7011292 or email peter.venn@windlab.com.
Globeleq, tel +27 21 180 4500 or email info@globeleq.co.za.
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, Marylen Schmidt, tel + 33 6 21 13 66 72 or email marylen.schmidt@soitec.com.
Solar Capital president Paschal Phelan, 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 Patricia Malo de Molina Meléndez, tel +34 954 93 7111 or email communication@abengoa.com; or investor relations 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, 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, tel +27 21 409 3500 or email capetown@arup.com.
Robor, tel +27 11 971 1600, fax +27 11 392 4435 or email headoffice@robor.co.za or info@robor.co.za.
ACS Cobra, tel +34 91 456 95 00, fax +34 91 456 94 50 or email central@grupocobra.com.
Gransolar, tel +34 91 736 42 48, fax +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.

Edited by Creamer Media Reporter

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