Enel Green Power confirms three SA wind projects as Round 4 bids are selected

14th April 2015

By: Terence Creamer

Creamer Media Editor

  

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Italy’s Enel Green Power (EGP) has confirmed that three of its wind-energy projects, collectively valued at €500-million, were selected as preferred bids following the much delayed fourth bid window under South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The company said in a statement that the projects had a collective nameplate capacity of 425 MW and marked an important step in consolidating EGP’s presence in Africa.

Engineering News Online understands that the South African government sent letters to the fourth-round preferred bidders over the weekend and that around 13 projects were selected, with a collective nameplate capacity of over 1 000 MW.

Most of the projects are believed to be wind and solar photovoltaic (PV) projects in the Northern Cape and Eastern Cape provinces. However, it is understood that a mini-hydro project in the Free State and a biomass project in Mpumalanga have also been selected.

The Department of Energy (DoE) did not respond immediately to enquiries on the matter.

The fourth bidding round closed on August 18, but the announcement of preferred bidders has been delayed for several months, partly owing to a delay in the selection of preferred bidders during round three.

The third bid window preferred bidders were eventually identified on October 29, following grid-connection-related delays. Most of these projects reached financial closure in December or early January.

EGP’s wind projects were additional to the 523 MW in solar PV projects being developed by the group in South Africa, with a 10 MW plant in Upington already operating and with a further 513 MW under development following EGP’s success during the third REIPPPP bidding round.

EGP said it took part in the latest tender through vehicle companies in which it holds a majority interest, with domestic partners owning the balance.

The three wind projects are the 142 MW Oyster Bay and 141 MW Nxuba developments in the Eastern Cape, as well as the 142 MW Karusa project, which will be built in the Northern Cape.

“The Oyster Bay and Nxuba projects will be completed and enter into service in 2017, while Karusa will enter into service in 2018,” EGP said, adding that, once fully operational, the three projects will be able to generate around 1 560 GWh a year.

Earlier this year, EGP country manager for South Africa Lamberto Dai Pra described the REIPPPP as a case study for the global industry and said that the company remained keen on pursuing additional projects under the programme.

Following the first three bid windows, government had procured around 4 000 MW from over 60 projects. More than 30 projects, with a combined capacity of just over 1 500 MW, were already connected to the grid.

The REIPPPP had also attracted around R140-billion in private investment and the prices had fallen during each successive bidding round.

Edited by Creamer Media Reporter

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