Stortemelk hydro project, South Africa

12th August 2016 By: Mariaan Webb - Creamer Media Senior Deputy Editor Online

Stortemelk hydro project, South Africa

Name and Location
Stortemelk hydro project, Free State, South Africa.

Client
Renewable Energy Holdings (REH) Project Development (formerly NuPlanet).

Project Description
Stortemelk is a 4.5 MW hydroelectric power installation, which is situated on Ash river and uses the outflow from the Lesotho Highlands Water Project.

The project was a successful bidder in the second round of the Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The project is one of the few projects under the REIPPPP that is 100% South African-owned.

The Stortemelk hydro project is the third hydropower plant developed in South Africa by REH.

Value
The capital cost of the project was R190-million. Rand Merchant Bank financed the capital cost, while REH, the Mertech Group and an independent broad-based black economic empowerment entity provided equity financing.

Duration
Construction started in November 2014 and was completed in an 18-month period.

Latest Developments
The Stortemelk hydro plant started commercial operations on July 29.

The project adds to the 2 852 MW of power already generated by 13 local hydropower plants, as well as the 1 500 MW of hydropower South Africa imports from neighbouring countries.

Key Contracts and Suppliers
Andritz Hydro (turbine, generator and switchgear), Indar Electrical and Aurecon South Africa (engineering, procurement and construction and management), Eigenbau (civil works).

On Budget and on Time?
The project was commissioned on time.

Contact Details for Project Information
Renewable Energy Holdings, Anton-Louis Olivier, tel +27 671 1457, or email info@REHgroup.co.za
Aurecon, tel +27 12 427 2000, fax +27 86 556 0521 or email tshwane@aurecongroup.com.
Eigenbau, tel +27 11 244 8700, fax +27 11 465 2080 or email eigenbau@mweb.co.za.
Andritz investor relations, Petra Wolf, tel +43 316 6902 2722.