May 23, 2012
Second-window renewables developers begin to emergeBack
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The Department of Energy and the National Treasury selected the projects from 79 proposals submitted by the March 5 deadline for the second bid window.
Following two bidding rounds, a total of 47 preferred bidders have been named, involving projects that collectively represent renewables capacity of 2 459.4 MW.
Through the REIPPP, government is seeking to procure 3 725 MW of capacity, to be introduced into South Africa’s power generation mix between 2014 and 2016.
The projects that have progressed to date could yield a combined investment of around R70-billion. However, it is understood that some of the preferred projects identified in December are struggling to meet the June deadline for financial closure.
Should projects fail to close, that capacity, together with the remaining 1 165.9 MW yet to be allocated, may be added into the bidding mix for the third bid window, which was initially scheduled for August. However, the August window could be delayed, owing to the fact that government is keen to take stock of the process before proceeding with another round.
Overall, the programme is expected to attract investment of around R100-billion between 2012 and 2016.
The names of the developers were not released along with the projects, but companies such as ACCIONA Energy, Aveng, Cennergi, EDF Energies Nouvelles, GDF Suez and Windlab Developments South Africa have confirmed that their projects were selected.
Cennergi, the recently formed joint venture involving Exxaro and Tata Power, has confirmed that two of its wind projects have advanced to the status of preferred bidders statu.
The company’s 138 MW Amakhala Emoyeni Wind Farm project, located near the town of Bedford, in the Eastern Cape, was the largest wind projects named in the round. The project has been developed together with Windlab Developments South Africa.
Cennergi's other wind project to advance is the 95 MW Tsitsikamma Community Wind Farm.
India’s Suzlon would supply 66 turbines for the Amakhala Emoyeni project, which would be delivered under a full engineering, procurement and construction management agreement.
Danish wind turbine producer Vestas will supply turbines for Cennergi’s Tsitsikamma Community Wind Farm.
Vestas also confirmed that it has been selected as preferred supplier for five projects, with a combined nameplate capacity of 297 MW.
Besides the Tsitsikamma Community Wind Farm, the Danish group is set to supply the 90.8 MW West Coast 1 project being pursued by Moyeng Energy, a consortium involving Investec Bank and French energy company GDF Suez and supported by Windlab.
Vestas’ systems could also be deployed at the 59.8 MW Grassridge, 23.4 MW Waainek and 20.6 MW Chaba projects, being developed by EDF Energies Nouvelles.
Meanwhile, renewable energy company ACCIONA Energy and construction group Aveng have confirmed that they have secured preferred bidders status on the 135.2 MW Gouda Wind Facility, as well as a 74 MW solar photovoltaic (PV) plant, called Sishen.
ACCIONA Energy will take a 51% stake in the projects and Aveng 29%, while two social development entities from South Africa will contribute the remaining 20%.
The two facilities will be ACCIONA's first investments in South Africa, with the Gouda project, which will incorporate 46 turbines, to be built in the Drakenstein area of the Western Cape. The Sishen solar PV plant, meanwhile, will be located in the municipality of Dibeng, in the Northern Cape.
In total, nine solar PV bidders have been named, representing a combined allocation of 417.1 MW. There are also seven wind projects selected, representing 562.6 MW, two small hydropower projects of 14.3 MW and one 50 MW concentrated solar (CSP) project.
The eight other solar PV bidders identified are the 75 MW Solar Capital De Aar 3, the 9 MW Aurora project, the 8.8 MW Vredendal project, the 36.8 MW Linde project, the 69.6 MW Dreunberg venture, the 75 MW Jasper Power Company development, the 60 MW Boshoff Solar Park and the 8.9 MW Upington Solar PV plant.
The two small hydropower preferred bidders have been named as the 4.3 MW Stortemelk hydro scheme and the 10 MW Neusberg hydroelectric project.
The 50 MW CSP project was named as the Bokpoort CSP project.
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