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

3rd October 2014

  

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Name and Location
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) - first window, nationwide, 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 billions of rands.

The preferred bidders include 18 solar photovoltaic (PV) projects, eight onshore wind projects and two concentrating 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 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)
• Noblesfontein wind farm (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 CSP projects named were Khi Solar One (50 MW) and KaXu Solar One (100 MW).

The DoE aims to produce 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.

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 solar PV projects:
This first phase of SlimSun’s Swartland solar park project is scheduled for commercial operations in July 2014. The second 17 MW phase is still under development.

Momentous Energy’s 6.8 MWp Rustmo1 solar PV project, in Rustenburg, in the North West, which began construction in February, has been completed and connected to State-owned power company Eskom’s electricity grid through a new 22/88 kW substation.

Globeleq’s Droogfontein and De Aar solar projects in the Northern Cape, have reached commercial operation and were inaugurated on May 15 this year. 

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 20 this year, delivering a combined 20 MW of electricity to the national grid. The projects each comprise about 45 000 solar PV modules and will supply power to the national grid for the next 20 years through a power purchase agreement (PPA) secured with Eskom’s single buyer office.

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. The projects are jointly located on more than 160 ha and feature 138 000 PV solar panels on single-axis trackers. The trackers are programmed to follow the sun throughout the day, ensuring that the maximum amount of power is being generated.

SunEdison’s Soutpan (28 MW) and Witkop (30 MW) solar parks are expected to start producing electricity early this year.

The DoE granted its final approval to a change in the financing structure of the Touwsrivier solar PV project in June this year, enabling the South African Government Employee Pension Fund (GEPF) to come on board as a long-term investor.

In practice, Soitec has joined forces with Public Investment Corporation (PIC), which represents the GEPF, through an equity financing structure. The GEPF will, ultimately, post the regulated holding period and hold a 40% stake in the project, while Soitec will only be retaining a minority shareholding in the long term.
Touwsrivier solar power plant has recently fulfilled milestones set for commissioning 22 MWp, or 50% of the total capacity. This confirms that the power plant performs in accordance with contractual specifications and validates the PPAs applied to the 44 MWp solar plant.

Solar Reserve announced in May this year that its Lesedi and Letsatsi projects, located in the Northern Cape and the Free State respectively, had been completed and were fully operational. The projects total 150 MW direct current and are capable of powering more than 130 000 South African homes with clean energy.

Scatec Solar South Africa’s 75 MW Kalkbult project, in the Northern Cape, officially opened on November 12, 2013. The facility is currently the largest solar plant in Africa. Connected three months ahead of schedule, it was the first REIPPPP project to be grid connected and operational in South Africa.

Construction company Wilson Bayly Holmes-Ovcon 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. Construction is expected to be completed within 21 months.

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

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

Umoya Energy’s Hopefield wind farm, which comprises thirty-seven 1.8 MW wind turbines, achieved commercial operation in February 2014.  The wind farm will generate enough electricity to power about 70 000 low-income homes, or 29 000 medium-income homes.

Gestamp Wind signed a PPA for the Nobelsfontein wind farm project with the DoE in November 2012. The project involves investment of €120-million. It is expected to come into operation this year.

Red Cap’s Kouga wind farm is on track for commissioning towards the end of this year. All 32-wind turbines have been erected, the next step is grid connection. Substantial completion of the warm is expected in December 2014

Rainmaker Energy’s estimated R2-billion Dorper wind farm project, in the Eastern Cape, is expected to generate 100 MW of energy. The wind farm is set to be commissioned this year.

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

African Clean Energy Developments’ Cookhouse wind farm will comprise 66 wind turbines.  Scheduled commercial operations are slated for this year. The wind farm will have an installed capacity of 138.6 MW.

The 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 the country’s needs. The plant along with the company’s 100 MW KaXu Solar One plant, in Poffadder, also in the Northern Cape, 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 supply) and ACS Cobra, Gransolar and Kensani Energy (engineering, procurement and 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 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 +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, 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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