Name and Location
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) - first window, South Africa.
Client
Department of Energy (DoE).
Project Description
The REIPPPP projects are among an initial batch of 53 bids submitted for the November 2011 bid window and represent a potential capacity of 1 415.2 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 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)
• Konkoosies Solar (9.65 MW)
• Aries Solar (9.65 MW)
• Greefspan power plant (10 MW)
• Herbert PV 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)
• Noblesfonstein (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 project represents a combined capacity of 633.99 MW.
The two solar CSP projects named were Khi Solar One (50 MW) and KaXu Solar One (100 MW). The DoE aims to produce 1 850 MW of onshore wind, 1 450 MW of solar PV, 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
Management consultancy firm Arup has started construction on several of the renewable-energy projects in South Africa, for which it is acting as lender’s technical adviser or owner’s engineer.
The nine PV and wind projects with which Arup is involved, represents almost one-third of South Africa’s REIPPPP’s Round 1 projects, which reached financial close in late 2012.
The nine projects total about 300 MW and are located across South Africa although the majority of the projects are located in the Northern Cape.
Arup has indicated that the first of the projects are anticipated to reach commercial operation in November.
Meanwhile, steel, tube and pipe manufacturer Robor has been contracted to supply the steel for two large 75 MW solar PV projects, which were selected in the first round of bids under the REIPPPP.
The two projects, Letsatsi and Lesedi, are situated in Bloemfontein and Postmasburg respectively and will be completed within 18 months from the day that construction starts. The total cost of the two solar PV developments is R 5.15-billion, making the two projects the largest in renewable energy on the continent.
A consortium led by international contractors ACS Cobra, along with Madrid-based Gransolar and South Africa’s Kensani Energy EPC, is responsible for the construction work.
Key Contracts and Suppliers
Arup (lender’s technical adviser or owner’s engineer), Robor (steel), ACS Cobra, Gransolar and Kensani Energy EPC 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:
Solar Capital, tel +27 21 430 0796, fax +27 21 430 0795/+27 86 538 8365 or email paschal@solarcapital.com.
Cennergi CEO Thomas Garner, tel +27 12 675 6669 or email Thomas.Garner@cennergi.com.
Windlab Developments South Africa, Peter Venn, +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 and 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, Thomas Schmidt, 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 media contact Camille Darnaud-Dufour, tel +33 6 79 49 51 43 or
email camille.darnaud-dufour@soitech.com, or investor relations, Olivier Brice, tel +33 4 76 92 93 80 or email olivier.brice@soitech.com.
Solar Capital, 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 contact Patricia Malo de Molina Meléndez, tel +34 954 93 7111 or email communication@abengoa.com, or investor relations contact 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 or 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, Damane Hlalele, tel +27 21 409 3500 or email capetown@arup.com.
Robor, tel +27 11 971 1600, fax +27 11 392 4435, email headoffice@robor.co.za or info@robor.co.za.
ACS Cobra, tel +34 91 456 95 00, +34 91 456 94 50 or email central@grupocobra.com.
Gransolar, tel T: +34 91 736 42 48, +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, Stephen.donnelly@intikon.com.