Globeleq, Mainstream cement SA renewables alliance as solar farms are inaugurated

15th May 2014

By: Terence Creamer

Creamer Media Editor

  

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International energy companies Globeleq and Mainstream Renewable Power have confirmed that they plan to continue to jointly explore and develop renewable-energy projects in South Africa, where they have together already built 100 MW of solar photovoltaic (PV) capacity and a 138 MW wind farm.

Globeleq CEO Mikael Karlsson, who was in South Africa this week to participate in the inauguration of two 50 MW solar farms in the Northern Cape, said the company was content with the partnership, which was preparing further joint bids under South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

Together with Thebe Investments, Enzani Technologies, Usizo Engineering, community trusts and property associations, Globeleq and Mainstream officially opened large-scale solar PV projects in De Aar and Kimberley on May 14 and 15 respectively. They also confirmed that their Jeffreys Bay wind farm, in the Eastern Cape, had officially passed commercial-operations muster on May 14.

Globeleq would, Karlsson confirmed, pursue gas-fired generation opportunities independently of the partnership, however.

He revealed that the emerging-market-focused energy group was currently in the process of identifying sites ahead of a likely gas bidding process, which South Africa’s Department of Energy (DoE) was expected to launch later this year. The projects would probably be designed to operate using imported liquefied natural gas, with Globeleq assessing a 1 000 MW project pipeline.

Meanwhile, Mainstream asset development head Barry Lynch confirmed that it had a 4 000 MW renewable-energy project pipeline in South Africa, including a further 360 MW of wind projects that had been named preferred-bidder projects during the third REIPPPP bid window.

Lynch was full of praise for South Africa’s renewables deployment model, which he said had given certainty to developers while also driving down prices. He added that Manistream’s pipeline was sufficient to facilitate the installation of up to 500 MW of new capacity yearly. However, he stressed that the South African process was highly competitive, with bids typically outweighing the allocations.

Following three REIPPPP bid windows, 64 projects had been selected, of which 47 projects were at various stages of development, with many of the first-bid-window projects already operating. The projects had also mobilised more than R120-billion in private investment into South Africa’s power sector.

The DoE initially aimed to procure 3 625 MW of large-scale renewables capacity, but had subsequently enlarged the allocation by 3 200 MW and had indicated that it planned to procure about 1 000 MW of capacity yearly for the foreseeable future. A bid submission deadline for the fourth bid window had been set down for August 18.

Globeleq South Africa MD Mark Pickering said its two solar PV projects had involved a steep learning curve, but had also helped the company and the country develop capacity and skills that had hitherto not existed.

The De Aar and Droogfontein (Kimberley) projects were also the first solar PV power plants to be included in the bigger Globeleq stable, with the company’s 14 000 MW of generation experience in 26 countries having previously comprised mainly gas, coal and wind.

The projects were built at a combined cost of R3-billion, with technology group Siemens having been awarded the engineering, procurement and construction contract. Siemens would also provide maintenance services for the first five years of operations.

Pickering said the support of the local municipalities and Eskom, which is the buyer of the power, had been critical to the progress made to date and also confirmed that Eskom had honoured all invoices.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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