Independent power producer (IPP) Rainmaker Energy plans to add 610 MW of
wind-generated electricity to South Africa’s power grid through the
development of two new projects in the Eastern Cape.
The company was working on developing a 550-MW wind farm, called the
Dorper project, near Molteno, and another 60-MW wind farm, called the
AB’s project, near Indwe.
Technical services director Doug Jenman told Engineering News Online
that the company expected to reach commercial close for the projects
before the end of this year, and that it was targeting the middle of
next year for the start of construction.
Environmental-impact assessments for both projects would likely be
completed by the end of August, while a record of decision on the
projects could potentially be issued by November.
The start of construction would, however, be dependent on the signing of
offtake agreements, or power purchase agreements, said Jenman.
He noted that the intention was sell the electricity produced to the
proposed new Independent Systems Operator (ISO), but added that its was
also looking at potentially selling the power in the local area, as
limited power was expected to constrain the economic growth in the
province.
The introduction of an ISO, which would see the country move away from
having State-owned power utility Eskom as the single buyer of
electricity, was expected to level the playing field for IPPs.
“Wind projects such as these, with strong energy yields, will provide
much-needed power to the Eastern Cape when power is needed, during the
day in winter, and matching the energy profile. These projects will also
provide a longer-term pricing stability to the electricity price,”
Jenman said.
The construction of the AB’s project would take less than 12 months,
while the construction of the Dorper project could take between 18
months and 36 months, depending on the requirements set out in the
offtake agreements.
Jenman noted that it would cost about R25-million for each installed MW
to develop the projects, with funding to be obtained through a
combination of debt and equity from South African and international
sources.
“We are running a competitive process and this has shown that there is
more than sufficient appetite for these particular projects, provided
there are bankable offtake agreements,” he commented.
Rainmaker Energy was planning to source the turbines for the projects
from an overseas supplier, but would procure as many services, such as
civils and electrical work, as possible, from South Africa and in the
Eastern Cape.
The IPP had also created a skills transfer and development programme for
the operation and maintenance of the wind farms.
This would boost job creation and skills development in the province,
while ensuring the reliable operation of the equipment while local
skills were being developed.
Edited by: Mariaan Webb
Source:
http://www.engineeringnews.co.za/article/two-new-wind-projects-on-t...
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