Name and Location
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) – third round, nationwide, South Africa.

Client
Department of Energy (DoE).

Project Description
Seventeen renewable-energy developers have been appointed as preferred bidders, following the conclusion of bid submissions for the third round of the REIPPPP.

The wind projects listed include:

• Gibson Bay wind farm (111 MW)
• Longyuan Mulilo De Aar Maanhaarberg wind energy facility (96 MW)
• Longyuan Mulilo De Aar 2 North Wind energy facility (139 MW)
• Nojoli wind farm (87 MW)
• Khobab wind farm (138 MW)
• Noupoort Mainstream Wind (79 MW)
• Loeriesfontein 2 wind farm (138 MW)

The wind projects collectively represent 787 MW of capacity.

The solar photovoltaic (PV) projects named are:

• Tom Burke solar park (60 MW)
• Pulida solar park (75 MW)
• Mulilo Sonnedix solar PV (75 MW)
• Mulilo Prieska solar PV (75 MW)
• Adams solar PV 2 (75 MW)
• Electra Capital (75 MW)

The combined capacity of the solar PV projects that progressed to the preferred-bidder stage was 435 MW.

The preferred concentrated solar power (CSP) bidders include Abengoa with its Xina parabolic trough CSP South Africa (100 MW), joint venture FG Emvelo’s Karoshoek project (100 MW) and Cobra Energia.

One landfill gas bidder, the Johannesburg landfill gas-to-electricity project, with a capacity of 18 MW, and one biomass bidder, the Mkuze biomass project, with a capacity of 16 MW were also named.

Value
Not stated.

Duration
The winning bidders are expected to sign project agreements with the DoE by July 30, 2014, after which developers will have about one month to finalise all documentation and foreign-currency hedging before project roll-out is set to begin.

Latest Developments
Wind projects:
Red Cap’s R2.25-billion, 111 MW Gibson Bay wind farm is situated in the Kouga municipality of the Eastern Cape. The 37-turbine project is expected to enter commercial operation in early 2017, generating more than 424 GWh/y.

Mainstream Renewable Power has been selected by the DoE to build the 138MW Khobab wind farm, the 138 MW Loeriesfontein 2 project and the 79 MW Noupoort plant, all located in the Northern Cape. Mainstream will be partnered in the project by South African investment firm Thebe Investment Corporation, Old Mutual's IDEAS Managed Fund, development investor Futuregrowth Asset Management, and South African renewable-energy firm Genesis Eco-Energy.

The Nojoli wind farm (88 MW), which is being developed by African Clean Energy Developments, will be owned by Italian company Enel Green Power, Pele Green Energy and the local community trust. Vestas has appointed Aurecon to conduct a detailed geotechnical investigation and preliminary roads design for the wind farm.

Solar PV projects:
Enel Green Power has been selected by the DoE to build four of the solar PV projects – Aurora, Tom Burke, Paleisheweul and Pulida. The projects will use thin-film modules produced by joint venture 3Sun. Enel expects to break ground on the sites by late August 2014 and to complete the project by August 2015.

SunPower and juwi, the engineering, procurement and construction contractors of Mulilo Renewable Energy's 75 MW Sonnedix and Prieska solar PV projects, near Prieska, in the Northern Cape, have appointed Aurecon for the engineering role to optimise the cost of design for the two projects. Aurecon will provide detailed design services for the substations, grid connections and associated overhead lines for the two projects. Once the projects reach financial close, currently expected in June 2014, construction of the two solar facilities will start and will be completed towards the end of 2015.

CSP:
Abengoa has been selected by the DoE to develop Xina Solar One, a 100 MW parabolic trough plant with a five-hour thermal energy storage system using molten salts. This project will form the largest solar complex in Africa together with Abengoa’s KaXu Solar One plant that is currently under construction in the country.

FG Emvelo, a joint venture between German consortium FG.de, Emvelo, and ABB, has been selected by the DoE to build the 100 MW Karoshoek CSP project, in the Northern Cape. The plant will be based on linear Fresnel technology and will be the largest linear Fresnel plant in the world.

Cobra Energia is the other successful CSP bidder.

Landfill:
A consortium led by Ener-G Systems has been named as a preferred bidder for a R288-million project to convert gas generated at five Pikitup landfill sites in Johannesburg into electricity over a 20-year period. The methane-rich gas will be collected at Robinson Deep, Goudkoppies, Marie Louise, Ennerdale and Linbro Park, where it will be converted into electricity through on-site generators and fed into the grid through either Eskom or City Power distribution infrastructure. The electricity will be sold to Eskom for 94c/kWh. Work is under way to ensure that the project, which is being part funded by Nedbank Capital, reaches financial close by mid-2014 so that construction can start by August this year.

Biomass:
The R1.062-billion, 16.5 MW Mkuze biomass facility, wholly owned by Navosyn, is situated in Mkuze, 150 km north of Richards Bay. The biomass facility will burn sugar cane tops and trash to generate high-quality baseload power. Building Energy Development Africa has 51% interest in the project, H1 Capital 16.5%, Tiestamax 30% and a local community trust 2.5%

Key Contracts and Suppliers
Futuregrowth, Rand Merchant Bnak (RMB), Enel Green Power, Mainstream Renewable Power, Abengoa, Cobra Energia, Aurora Power Solutions, Total SA, Mulilo Renewable Energy, Energ-G, Red Cap, Mainstream Renewable Power, African Clean Energy Developments, FG Emvelo, Navosyn.

On Budget and on Time?
Not stated.

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.
Mainstream Renewable Power, Emmet Curley, tel +353 1 290 2027 or email emmet.curley@mainstreamrp.com.
Futuregrowth, tel  +27 21 659 5300, fax +27 21 659 5333 or email  info@futuregrowth.co.za.
Enel Green Power international press officer Roberta Vivenzio, tel +39 06 8305 1, fax +39 06 8305 3771 or email roberta.vivenzio@enel.com.
Abengoa communications department Patricia Malo de Molina Meléndez, tel +34 954 93 71 11 or email communication@abengoa.com.
Cobra Energia, tel +91 456 95 00, fax +91 456 94 50 or email central@grupocobra.com.
Mulilo Renewable Energy, tel +27 21 934 5268, fax +27 21 935 0505 or email info@mulilo.com.
RMB, tel +27 11 282 8000, fax +27 11 282 8008 or email info@rmb.co.za.
Aurora Power Solutions, tel +27 21 421 9764, fax +27 865 138 648 or email info@apsolutions.co.za.
FG.de, tel +49 941 200009-0, fax +49 941 200009-99 or email info@fg.de.
Emvelo, tel +27 11 523 6299, fax +27 11 784 0285 or email admin@emvelo.co.za.
ABB Power Products and Systems head of communications Harmeet Bawa, tel +41 43 317 6480, fax +41 43 317 6482 or email harmeet.bawa@ch.abb.com.
Building Energy Development Africa, tel +11 887 4364.