THE FIRST LARGE-SCALE PRIVATE WHEELING PROJECT BY SOLA GROUP PROVIDES A GLIMPSE INTO THE MODERNISED ELECTRICITY GRID
Energy wheeling allows power to be produced in one location and billed to an energy user in another region
The first operational large-scale solar PV wheeling project in South Africa has reached commercial operation three months ahead of schedule, providing clean energy to Amazon Web Services via the Eskom grid in a new model of private energy procurement called energy wheeling. The project, developed by the SOLA Group, will provide over 28-million kwh of clean electricity to Amazon Web Services annually.
Wheeling is a financial transaction that allows power to be produced in one location and billed to an energy user in another region. The plant will provide a low-carbon alternative to coalfired power for private offtaker, Amazon Web Services, without needing to be geographically located at the site of use. This model could help South Africa significantly in transitioning to a zero-coal model of electricity provision, which is at the forefront of discussion at the COP26 climate change taking place in Glasgow currently.
“This is a first-of-its-kind wheeling project in South Africa, and the model is futuristic: it uses Eskom’s grid to connect private buyers and sellers together, paving the way for more choice and competition. It’s the first step forward in creating grid independence, where private buyers and sellers of energy can trade with each other,” said Dom Wills, CEO of the SOLA Group.
Amazon Web Services is working with governments and utility suppliers around the world to curb their emissions and reach their goal of procuring 100% renewable energy by 2025.
The launch of the solar plant symbolises the positive stance taken recently by the Department of Minerals and Energy, NERSA (National Energy Regulator of South Africa) and Eskom towards renewable energy generation, which has great potential to solve South Africa’s energy crisis and reduce electricity costs. Power
generated from wheeling projects will increase the amount of IPPS (Independent Power Producers) and relieve the sole electricity provision burden on Eskom.
Technologically, the plant represents the cutting edge in renewable energy design. The single axis tracking plant consists of over 24 000 bifacial solar modules covering an area of 20 hectares in the Northern Cape, where the solar resource is one of the best in the world.
The solar PV facility tracks the sun throughout the day and absorbs irradiance from both the sky and reflected light from the ground, making it more efficient. The plant design will see over 25 000 tonnes of carbon emissions being avoided annually — the equivalent of taking 5400 cars off of the road for a year.
Projects like these show the willingness of the government and the private sector to work together on solving South Africa’s electricity crisis. “The successful launch of this project demonstrates the viability of a modernised grid with renewable energy at its core,” said Wills.
Local economic development
In addition to lowering carbon impact, private renewable energy projects also contribute to creating economic impact in South Africa. The project is more than 63% black owned, with investor Mahlako a Phahla Financial Services holding stakes in the project.
The SOLA Group is a fully South African-owned company that has been developing, constructing and operating Solar PV projects since the first round of REIPPP, the government’s renewable energy procurement programme. SOLA Group is
100% South African owned, including a 40% shareholding by black investor African Rainbow Energy and Power.
During construction, the plant created 167 jobs, 63% of them from the surrounding area, and it will sustain permanent jobs for its lifetime in electrical maintenance, cleaning and security. Wooden waste generated during construction, including pallets and electrical cable drums, were donated to local furniture businesses and special skills schools, in order to further bolster the SMME contributions of the project.
“It’s immensely important that while we’re rebuilding energy generation in South Africa that we’re also developing South African companies and skills,” added Wills. “SOLA has always been committed to transforming South Africa through clean energy, and this project marks a step change in scale.”
About SOLA Group
The SOLA Group is a vertically-integrated provider of renewable energy solutions, aiming to transform Africa through clean energy. With over 13 years of experience, SOLA’S expertise lies in the origination, development, financing, engineering design, project management and Operations and Maintenance of renewable energy facilities. For more information, visit w w w .solagroup.co.za.