Name and Location
Upington concentrating solar power (CSP) demonstration plant project, Northern Cape, South Africa.

Client
Eskom.

Project Description
Eskom proposes to generate thousands of megawatts of baseload power from solar energy, through the initial construction of a 100 MW CSP plant, on an area covering 4 km2, in Upington, in the Northern Cape.

Proposed is the development of a central-receiver CSP plant, where molten salt is used as a storage and heat-transfer medium. The so-called power tower will be surrounded by an array for heliostats, or mirrors, which continuously reflect sunlight onto the tower’s central receiver.

A new substation will be developed in Upington to service the Eskom  plant.

The project, together with the proposed wind power plant at Sere, in the Western Cape, forms part of Eskom’s Renewable Energy Independent Power Producer Procurement Programme, which aims to introduce renewable energy as an alternative solution to the country’s burgeoning electricity demand.

If the plant proves to be commercially feasible, the utility contemplates constructing a 1 000 MW plant.

Eskom's objective is to include 1 600 MW of renewable energy in its power generation by 2025 through solar, wind, hydro and biomass.

Value
The project is estimated at R9-billion, with a more precise capital estimate to emerge only once a tender process has been concluded.

Duration
Construction is expected to start at the beginning of 2014 and be completed by the end of 2017, with commissioning expected to continue into the first half of 2018.

Latest Developments
The basic design work for Eskom’s 100 MW CSP demonstration project is nearing completion and the prequalification of potential contractors should begin within months.

Tractebel Engineering has been appointed the owner’s engineer on the project.

A two-stage bidding process is envisaged, with the first request for unpriced technical proposals likely to be launched in the second half of 2013.

The tender seeking price bids is expected to close during 2014 and the engineering, procurement and construction (EPC) contractor should be appointed in the second half of next year.

A three-year construction phase is expected to follow, beginning at the end of 2014 and continuing to the end of 2017. The commissioning phase is likely to continue into the first half of 2018.

An oversized site has been secured in anticipation of Eskom pursuing a 500 MW to 1 000 MW fleet of solar projects in the coming years. In addition, a new substation will be developed in Upington to service the Eskom CSP plant and solar facilities will be built in the area by independent power producers.

Sun-drenched Upington has also been identified as a key location in the eventual realisation of the Department of Energy’s larger solar park, or corridor, concept, which is being investigated by the Central Energy Fund.

Key Contracts and Suppliers
The African Development Bank (AfDB), the World Bank, Agence Française de Développement (AFD), the European Investment Bank and the Clean Technology Fund (CTF) (funding) and Tractebel Engineering  (owner’s engineer).

On Budget and on Time?
The project was delayed, owing to the lack of funding; however, it is now expected to continue as a result of loans from the World Bank, the International Bank for Reconstruction and Development, the AfDB and the CTF.

Contact Details for Project Information
AFD South Africa, tel +27 11 540 7100, fax +27 11 540 7117 or email AFDJohannesburg@afd.fr.
AfDB, Kurt Lonsway, tel +216 7 110 3313 or email k.lonsway@afdb.org.
Eskom media desk, tel +27 11 800 3304/3309/3343/3378, fax +27 86 664 7699 or email mediadesk@eskom.co.za.
Eskom's Resources and Strategy group, tel +27 11 629 5526.
Eskom investor relations manager Khanyi Makhaya, tel +27 11 800 2277, fax +27 11 800 2043 or email investor.relations@eskom.co.za.
KfW project coordinator Stefanie Peters, tel +27 12 423 6357, fax +27 12 42 423 6360 or email kfw.pretoria@kfw.de.