Preferred bidders for Round four of the Renewable Energy Independent Power Procurement Programme (REIPPP) were issued letters on Friday
Preferred bidders for Round four of the Renewable Energy Independent Power Procurement Programme (REIPPP) were issued letters on Friday
Enel Green Power will supply parastatal Eskom with clean power through a 20-year power purchase agreement

In South Africa, Italian renewable power company Enel Green Power (EGP) has been awarded an additional 280MW in round 4.5 of the South African Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The power company won two 20-year power supply contracts with state-run power utility Eskom for two on-shore wind power projects, bringing the total capacity awarded to 705MW in round four.

According to EGP, they participated in the tender process “through vehicle companies” in which it holds the majority of the shares, in partnership with major local players.

Wind energy projects

EGP stated in a company statement that the power company will be investing an estimated $382 million (ZAR5 billion), in line with EGP growth targets set out in its current strategic plan.

The two wind farms, Soetwater and Garob will generate 142MW and 138MW respectively. They will be developed in the Northern Cape Province and are set to reach commercial operation by 2018.

Francesco Venturini, Chief Executive Officer of Enel Green Power commented: “South Africa, where electricity demand is still expanding rapidly and the economy is growing, with a stable regulatory and legislative framework, maintains its position as a strategic country for our company. We are ready to more than double our investment there, increasing it to more than 1.3 billion euros [$1 billion] from 600 million euros [$673 million].”

REIPPPP window four

The initial round of window four awarded EGP the Oyster Bay (142MW), Nxuba (141MW) and Karusa (142MW) on-shore wind farms and according to EGP, the three plants will require a total investment of $6 million (ZAR 74 million) and once in operation will have a generation capacity of 1,560GWh per annum.

The three projects will be constructed in the Eastern Cape and Northern Cape provinces where wind resources are plentiful.

EGP’s existing plants

The wind plants will add to EGP’s existing South African renewable energy assets.

The company operates 10MW of photovoltaic solar power in Upington, Northern Cape, in addition to 513MW of power projects which the company was awarded in round three of REIPPPP.

Earlier this year, EGP also announced that it had commenced the construction of three photovoltaic plants in South Africa.

The Aurora, Paleisheuwel and Tom Burke PV plants will be located in different areas across the country with a combined generation capacity of 231MW.

The Northern Cape Aurora plant is currently on 82.5MW generation output and is estimated to generate an additional 168GWh per year once in full operation.

The Paleisheuwel photovoltaic plant will be developed in the Western Cape with a generation output of 82.5MW. Once the plant reaches optimal operation it will be able to generate a further 153GWh per year.

Located in Limpopo Province, the Tom Burke solar PV plant has an installed capacity of 66MW and will have the ability to add 122GWh a year once fully up and running.