Small South African town to get R15-billion solar power plant
Norwegian solar power producer Scatec SA has plans to provide electricity to South Africa’s grid, and the project is in the final stages of approval.
Electricity will be supplied by around one million solar panels set up on a solar farm situated near Kenhardt in the Northern Cape.
According to a City Press report, the solar and battery project is one of the largest in the world and represents a R15 billion investment.
The farm to be constructed near Kenhardt is one of three projects that will provide 540MW of solar generation and 225MW – or 1,140MWh – of battery storage.
Scatec has partnered with the local clean energy company H1 holdings to carry out the project.
The company’s general manager, Jan Fourie, said that environmental approval had already been granted and that Scatec SA is finalising the financing process.
After that, the project requires final approval of the purchase agreement from Eskom’s board of directors and the National Treasury, which will apply for 20 years.
One of the energy department’s requirements for renewable power production is that power must be available on-demand from the system operator from 05:00 to 21:30, regardless of weather conditions.
Scatec’s solar and battery technology accounts for weather conditions and can supply electricity even if overcast weather persists for extended periods.
Its tariff will start at R1.88 per kWh for the 20-year contract and have an annual inflation-linked adjustment.
Fourie said they could limit increases to inflation because the project is not subject to fluctuating commodity prices or the exchange rate.
Chris Yelland, managing director of EE Business Intelligence
The Department of Mineral Resources and Energy recently published its Electricity Pricing Policy Review for public comment.
The review included plans to establish a separate independent transmission company under Eskom, facilitating electricity transmission from other providers.
Assuming the policy review is passed, the move should help resolve the country’s electricity crisis.
According to energy expert Chris Yelland, the move is a step towards a competitive, diversified generation sector where generators other than Eskom had equal access to the grid.
“It facilitates bilateral contracts between generators and users of electricity, it facilitates the trading of electricity, and it also is there to establish a new electricity market in South Africa where trades can take place between buyers and sellers,” Yelland said.
Currently, 6,000MW of electricity from solar and wind generation is supplied to Eskom by Independent Power Producers (IPPs).
When Eskom’s coal power generation units break down, it often results in the utility using diesel-powered open-cycle gas turbines (OCGTs) for emergency generation.
Yelland had previously estimated that it cost Eskom approximately R4 per kWh of electricity generated with OCGTs.
As more IPPs like Scatec are able to provide electricity to the grid, Eskom’s reliance on emergency power generation should decline.
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