Eskom brings in IPPS
ESKOM has finally partnered with independent power producers in a bid to address the energy crisis.
It signed land lease agreements with five independent clean power generators at two of its power stations in Mpumalanga for the construction of new clean energy generation capacity.
The investors will lease 6 184 hectares of land for between 25 and 30 years each, and contribute about 2 000MW to the national power grid.
The embattled power utility also plans to make more land available around its power stations where there is sufficient grid capacity to connect clean energy producers.
The successful bidders are HDF Energy South Africa, Red Rocket SA, Sola Group and South Africa Mainstream Renewable Power Developments. Eskom has also concluded power purchase agreements with third parties, and the power will be distributed through Eskom’s infrastructure, helping to alleviate generation capacity constraints.
Eskom said the key objective of this initiative is to provide relief to the constrained electricity system in as short a time as possible. There is a dire need to alleviate pressure on the system by adding as many megawatts as possible in the shortest possible time, thus increasing Eskom’s ability to conduct maintenance at its existing fleet, reducing load shedding and the usage of open-cycle gas turbines.
This portion is land parcels around the Majuba and Tutuka power stations. The next phase will focus on properties around the Kendal and Kusile power stations in Mpumalanga, as well as the retired Ingagane power station in Newcastle, Kwazulu-natal.
It is expected that the generators will be connected to the grid within 36 to 48 months from financial closure. Schedule 2 of the Electricity Regulation Act of 2006 permits independent power generators to distribute electricity through the transmission grid, subject to charges and connection agreements with the relevant transmission or distribution licence holders.
One of the successful bidders, Red Rocket Energy’s CEO, Matteo Brambilla, said their success in the industry speaks for itself.
“We provide an integrated solution from design, development to energy production, operation and maintenance and asset management. With more than 1 000MW of projects in operation, under construction and near financial close in South Africa and into Africa. We are excited and geared to support Eskom through adding new generation capacity,” he said.
“Red Rocket will develop its project in solar and incorporate a storage component but ultimately the bidders combined are supporting Eskom. While the project is in Mpumalanga, communities across South Africa stand to benefit from the initiative with more power ultimately being added to the grid,” Brambilla said.
Head of development at Red Rocket Energy, Sharief Harris, said they managed to secure two parcels of land from them to initiate this project.
“Feasibility studies commenced with the launch of the Eskom procurement process, and this approach allowed us to put in proposals to Eskom that we believed would be acceptable to Eskom and sustainable to the projects. These project sites are more suitable for solar and will also incorporate a storage component. We are hoping to implement a combined 300MW on these sites,” Harris said.