Solar power ‘finally comes home’
On a hot summer’s day, sunlight joins the national grid
IT SEEMS appropriate that it is a scorching hot day in the Karoo when South Africa celebrates the first “sun” energy to zip past on its national grid after years of planning and negotiations.
“It’s like seeing solar energy finally come home,” said Dr Alf Bjorseth, chairman of the Norwegian company, Scatec, responsible for building the first commercial solar plant in South Africa.
It took Scatec only nine months to build the plant, but it has actually taken South Africa a decade to get to this point. The government released its renewable energy policy in 2003, but delays came as agreement was sought over implementation, tariff structures and the introduction of independent power producers (IPPs) in a country where state-owned power utility Eskom had been the only electricity supplier for 90 years.
However, once the government and Eskom got their act together, very big projects were allocated very fast to the point where the country is now seen as a world leader in the renewable energy race — South Africa has already allocated R130-billion to renewable projects. Last year it invested R55-billion, more than Brazil and France. According to a US research body Pew, South Africa is seen as the “cornerstone of clean energy development for the entire African continent.”
Altogether 38 solar-power projects (1 880MW) have been awarded to a number of IPPs from across the globe. South Africa plans to add a total of 17 800MW of renewable energy (42% of the grid) by 2030.
Speaking in a marquee filled with local school children, government officials, business people and professionals this month, farmer Kurt Krog said he did not mind that the solar plant — about the size of 104 rugby fields — would be hosted on his fourth-generation family farm, Kalkbult.
The plant, which shares the farm’s name, can provide electricity to 33 000 households. “What do you
❛ My sheep can still graze on the same land where electricity is being generated
have if you don’t have electricity and water?” said Vivienne Burgess, Krog’s mother-in-law, who was born and raised on the farm.
There is a significant financial benefit to farmers like Krog, willing to host these massive solar plants, as Eskom pays the IPPs a premium to purchase power from them and the IPPs in turn pay the farmers to rent their land for the next 20-plus years.
And, as Krog pointed out, “my sheep can still stroll around and graze on the same land where electricity is being generated”.
The Kalkbult project came through as part of the successful bidders during the country’s first bidding window, when Eskom was still paying R2.50 to R2.85 per kilowatt hour produced.
But, in a world first, the government introduced a competitive bidding process that meant prices shrank to 88c/kWh by the third bidding window. Currently, Eskom pays about 54c/kWh for power largely produced by coal-fired power stations.
This means that purchase prices for renewable energy and coal-fired electricity could soon be equal, even though building prices are still far apart. The cost of building one megawatt of solar energy is about equal to the cost of building 60MW of coal-fired electricity. After construction, however, renewable energy has the benefit of “free fuel” and minimal maintenance.
Scatec CEO Raymond Carlsen said that if South Africa played its cards right it could even become an exporter of renewable technologies and skills. He said the Kalkbult plant would be used as a training ground to build additional skills in this field.
According to Angelique Kilian of the Department of Energy, “localisation” has increased from about 25% during the first group of projects to 50% currently.
Twenty-nine-year-old Morne Martins said he had worked on the Kalkbult plant from the start.
“Before Scatec came here, I sometimes did a bit of paving or some painting, but now I am a trained electrician. I really enjoy my job,” he said.