Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3...

29
MONITORING RENEWABLE ENERGY PERFORMANCE OF POWER PLANTS Progress in the first half of 2017 (Issue 10) September 2017

Transcript of Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3...

Page 2: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

2

Contents

1. Background on Renewable Energy Support in South Africa ......................................... 3

2. Implementation of Renewable Energy .................................................................................. 4

2.1. Ministerial Determinations ....................................................................................................... 4

2.2. Procurement of Renewable Energy ....................................................................................... 5

3. Progress of Renewable Energy Independent Power Producer Programme

(REIPPP) projects ....................................................................................................................... 7

4. New utility scale RE Power Plants from the REIPPP ........................................................ 9

5. Energy Production ................................................................................................................... 10

5.1. Monthly energy contribution ................................................................................................. 10

5.2. Hourly energy profiles ............................................................................................................ 14

6. Renewable Energy Power Costs of REIPPP ..................................................................... 15

7. Job creation and economic development under REIPPP.............................................. 16

8. Renewable Energy Power Plants not under IPP Procurement Programme of the

Department of Energy ............................................................................................................. 18

9. Concluding Remarks ............................................................................................................... 20

APPENDIX A: Distribution of All Renewable Energy Projects in South Africa ............... 21

APPENDIX B: List of all RE IPP in Commercial Operation under the Procurement

Programme of the Department of Energy .......................................................................... 22

APPENDIX C: Provincial Allocation RE IPP Projects ............................................................. 23

Glossary of Terms and Abbreviations ........................................................................................ 27

GLOSSARY ........................................................................................................................ 27

ABBREVIATIONS .............................................................................................................. 29

Page 3: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

3

1. Background on Renewable Energy Support in South

Africa

In terms of section 4 of the Electricity Regulation Act 2006 (Act No. 40 of 2006) ('the

Act'), NERSA has a mandate to 'establish and manage monitoring and information

systems and co-ordinate the integration thereof with other relevant information

systems'. The Renewable Energy (RE) Independent Power Producers (IPPs) are

required to submit reports on their monthly energy production, pursuant to section 15

of Grid Connection Code for Renewable energy version 2.9 of 2016.

A number of policies have been enacted in order to enable renewable energy to be

developed and implemented in South Africa. The 2003 White paper on Renewable

Energy set a target of 10 000GWh by 2013 to be sourced from various renewable

energy technologies. The Integrated Resource Plan (IRP) 2010–2030, currently being

updated, outlines the preferred energy mix aimed at ensuring that the electricity

demand is met over the 20-year planning period. In line with the national commitment

to transition to a low carbon economy, 17 800 MW of the 2030 IRP 2010–2030 target

is expected to be from renewable energy sources, with 5 000 MW to be operational

by 2019 and a further 2 000 MW (i.e. combined 7 000 MW) operational by 2020.

In May 2011, the Department of Energy (DoE) gazetted the Electricity Regulations on

New Generation Capacity (‘the Regulations’) under the National Energy Regulator Act,

2004 (Act No. 40 of 2004) (‘the ERA’). The ERA and Regulations enable the Minister

of Energy to make Determinations in consultation with NERSA. In the Regulations,

Eskom is designated as the Buyer of power from IPPs.

In November 2011 South Africa launched the Green Economy Accord at the COP17

talks in Durban1. The Accord was aimed at creating 300 000 new jobs by 2020, in

economic activities as diverse as energy generation and manufacturing. The other

1 http://www.gov.za/south-africas-green-economy-accord, Accessed online 20 July 2017.

Page 4: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

4

objective was to ensure that there are farming activities to provide feedstock for

biofuels, soil and environmental management and eco-tourism.

In 2012, Government also developed the National Development Plan (NDP) 2030

which also supports the development of RE as planned in the IRP2010–2030 of the

country. As one of its goals, the NDP identifies the need for South Africa to invest in

economic infrastructure that is aimed at supporting South Africa’s medium- and long-

term economic and social objectives. At the heart of economic development, energy

plays an important role in ensuring that the economic growth plans set out by the

country are realised.

2. Implementation of Renewable Energy

2.1. Ministerial Determinations

The implementation of the promulgated IRP2010–2030 was carried out using

Ministerial Determinations, which are regulated by the Regulations. To date, the

Minister of Energy has made four Determinations for RE, including the 2015 Solar

Park Determination, and these are listed in Table 1. The total capacity of signed

projects so far is 3 907MW.

Table 1: Ministerial Determinations of renewable energy and their capacities

However, on 01 September 2017, the Minister issued a Media Statement2 regarding

the delayed signing of the Power Purchase Agreements (PPAs) between Independent

Power Producers (IPPs) of Bid Window (BW) 3.5, BW4 and Eskom. The Minister of

2 IPP Media Statement: http://www.energy.gov.za/files/media/pr/2017/IPP-Media%20Statement-01September2017.pdf, Accessed online, 14 September 2017.

Determination Capacities (MW)

2011 Renewable IPP 3 800

2012 Renewable IPP 3 200

2015 Renewable IPP 6 300

2015 Solar Park 1 500

Total Capacity Determined 14 800

Total Capacity Signed 3 907

Page 5: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

5

Energy mentioned that, after a meeting with the Minister of Public Enterprise,

representatives from the DoE, the Department of Public Enterprise (DPE), National

Treasury, Eskom and the IPP Office, a conclusion was reached that the procurement

programme of RE under the DoE will be placed on hold until a proper review is done

and to allow the Integrated Energy Plan (IEP) and IRP to be concluded in order to give

an indication of the capacity needed by the country. In the short term, the moratorium

imposed by the Minister may have an impact on the rate of introducing additional

annual capacity of RE as outlined in the promulgated IRP2010–2030, but it will not

affect the operating RE IPPs.

2.2. Procurement of Renewable Energy

From 2011, the Department procured 6 428MW of RE in BWs 1 to 4, including a

dedicated Concentrated Solar Power (CSP) BW, and two separate BWs intended for

small-scale projects. Table 2 shows the total number of projects selected in all

completed BWs. In total, 112 IPPs have been selected from the six BWs.

Table 2: Selected 112 REIPPP projects through all completed BWs.

Number of projects selected

Technology BW 1 BW2 BW3 BW 3.5 BW 4 Small Projects

Total number per

technology

Onshore wind 8 7 7 n/a 12 2 36

Solar PV 18 9 6 0 12 16 61

CSP 2 1 2 2 n/a n/a 7

Small hydro n/a 2 n/a n/a 1

3

Landfill gas n/a n/a 1 n/a 1

Biomass n/a n/a 1 n/a 1 2 4

Biogas n/a n/a n/a n/a n/a

Total number per BW

28 19 17 2 26 20 112

These 112 IPPs are located across all nine provinces with Northern, Eastern and

Western Cape sharing the majority of the projects. Table A1 in Appendix A shows the

distribution map of RE projects across the country.

Page 6: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

6

Table 3 shows the capacity allocation of different RE technologies per BW. The BW1

tender submission date was on 04 November 2011 and 28 Preferred Bidders with

contracted capacity of 1 426 MW were selected. The selected bidders signed

agreements on 05 November 2012. BW2 IPP projects’ submission date was on

05 March 2012 and 19 Preferred Bidders were selected with contracted capacity of 1

040MW. The signing of the agreements took place on 09 May 2013. BW3 potential

IPPs submitted their bids on 29 August 2013 and 17 Preferred Bidders with contracted

capacity 1 457MW were selected. Signature of the agreements for 15 of these projects

took place on 11 December 2014.

Table 3: Capacity Allocation per Bid Window

Technology BW 1 (MW)

BW2 (MW)

BW3 (MW)

BW 3.5 (MW)

BW 4 (MW)

Small Projects (MW)

Total RE (MW)

Onshore wind 649 559 787 1 362 10 3 367

Solar PV 627 417 435 813 80 2 372

CSP 150 50 200 200 600

Small hydro 14 5 19

Landfill gas 18 18

Biomass 17 25 10 52

Biogas

Total 1 426 1 040 1 457 200 2 205 100 6 428

A separate Bid Window, BW3.5, dedicated for Concentrated Solar Power (CSP)

projects, was announced and its Bid Submission Date was on 31 March 2014. Two

Preferred Bidders with a contracted capacity of 200MW were selected. The Fourth

Bid Window (BW4) Submission Date was on 18 August 2014. From BW4, 13 Preferred

Bidders were selected, and were announced on 16 April 2015. The contracted

capacity of BW4 was 1 121MW. An additional 13 Preferred Bidders for BW4 were

announced on 07 June 2015 to provide a further 1 084MW of contracted capacity. In

total, 2 205MW of contracted capacity has been procured for BW4. The projects of

BW4 were expected to sign their agreements by the end of first quarter 2016, but

Eskom indicated that it would be difficult to sign some of the projects due to high prices

and excess capacity on the grid.

In addition to the above BWs for large-scale RE IPPs, twenty small-scale IPP projects

(with capacity between 1MW and 5MW) were selected through the bidding process.

Page 7: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

7

Their total contracted capacity is 100MW. NERSA licensed the first ten projects on 26

April 2016, while the licence applications of the remaining projects are currently under

evaluation. The public hearing for the remaining small-scale projects was held on

03 August 2017.

3. Progress of Renewable Energy Independent Power

Producer Programme (REIPPP) projects

In this report, the capacity of commercial operating projects is reported until 15 August

2017, while energy production is reported until 30 June 2017. Renewable energy grid-

capacity has increased substantially in the past two years, owing to the implementation

of the Renewable Energy Independent Power Producer Programme (REIPPP) of the DoE.

In 2016, approximately 888MW of RE IPP projects reached commercial operation. So

far this year, about 362MW of capacity reached commercial operation. This capacity

is from BW3 RE IPP projects. Section 4 of this report will briefly describe the two of

recently connected RE IPP power plants.

Figure 1 shows the cumulative capacity on the grid as of 15 August 2017. The capacity

achieved by projects in commercial operation is 3 271MW. The detailed information

regarding commercial capacities and operation dates of individual projects is listed in

Table B1 of Appendix B.

Page 8: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

8

Figure 1: Annual capacity of renewable energy IPP projects [Data Sourced from IPPs, August 2017]

Table 4 lists capacities of RE IPP projects in commercial operation per province. Also

shown in the table (in brackets) are the number of projects in commercial operation

for each technology type. Table C1 in Appendix C provides further information on

contracted capacities of each province.

Table 4 Status of RE IPP project capacity in operation per province as of 15 August 2017.

Provinces CSP (4) Hydro (2) Landfill (1) Solar PV (33) Wind (18) Total per province

(MW)

EC

69.6 1001.2 1 070.8

FS

203

203

GP

5.28

5.28

LP

121.62

121.62

NC 300 14.22

887.13 152.85 1 354.2

NW

6.93

6.93

WC

190.7 318.72 509.42

Grand Total (MW)

300 14.22 5.28 1 478.98 1 472.77 3 271.25

Note: (#) = Number of Projects

Figure 2 shows the contract status of projects from each RE IPP Bid Window as of

15 July 2017. All projects from BWs 1 and 2 were signed and have reached

Page 9: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

9

commercial operation, while BW3 has 16 projects signed and one project not signed

(i.e. not reached financial conclusion).

Figure 2: Status and number of REI PP contracts as of 15 August 2017 [Data Sourced from Eskom, August 2017]

4. New utility scale RE Power Plants from the REIPPP

Two new power plants that were commissioned in April 2017, namely the Red Cap

Gibson Bay Wind Farm, located in Humansdorp (Eastern Cape), and the Goudkoppies

landfill gas project within the Johannesburg Municipality.

Figure 3 shows a picture of Gibson Bay Wind Farm. Gibson Bay Wind Farm consists

of 37 Nordex turbines with a capacity 3.0MW. The total installed capacity will be

111MW and the expected annual energy production is 424GWh. The site where the

wind farm has been built covers an area of about 4 300 hectares. The total investment

of the project is approximately ZAR2.25 billion. The project company structure consists

of 60% Enel and 40% Gibson Bay community trust.

Page 10: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

10

Figure 3: Arial view of Gibson Bay Wind Farm in the Eastern Cape. Courtesy Enel.

The Goudkoppies Landfill is one of five landfill gas sites around City of Johannesburg

Municipality that received preferred bidder status from BW3 of the REIPPP. The five

landfill site projects are owned by Ener-G Systems and when fully operational will have

a combined contracted capacity of 18MW. This project site is expected to contributing

nearly 3MW of capacity of the 18MW.

5. Energy Production

5.1. Monthly energy contribution

REIPPP power plants produced more energy in the first half of 2017 compared to the

first half of 2016. This is mainly due to additional power plants that reached commercial

operation before end of June 2017. Figure 4 below shows the monthly energy

production of renewable power plants in the first six months of 2017. In this period RE

IPP power plants generated approximately 3 761GWh, excluding Eskom’s Sere Wind

Farm. Wind and Solar PV technologies contributed more energy due to their high

installed capacity compared to other RE technologies. The breakdown of energy

produced by RE IPP power plants for each province is shown in Figure 5. The Northern

Cape, followed by Eastern and Western Cape provinces, produced more energy than

other provinces.

Page 11: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

11

Figure 4: Monthly Energy Production of RE IPPs in the first half of 2017 [Data sourced from IPPs, June 2017]

Figure 5: Sent-out Energy of RE IPPs per province from January to June 2017 [Data sourced from IPPs, July 2017]

Figure 6 shows the trend of RE IPP monthly energy for 2017 and past two years. It is

evident that RE has grown over the years and it is attributed to additional capacity

from new RE IPP projects.

Page 12: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

12

Figure 6: Comparison of Monthly Energy production in 2017 with the past two years. The data includes Eskom’s Sere Wind Farm [Data sourced from Eskom, July 2017]

Figures 7 and 8 show the individual Capacity Factors (CFs) of Solar PV and Wind RE

IPP projects in the first half of 2017. Solar PV average CF was 23% and wind

technology achieved an average CF of 31%. So far this year both technologies have

achieved annual average CFs that are similar to those for the first half of 2017, when

wind and solar PV power plants achieved average CFs of 31% and 24%, respectively.

CSP technology’s average CF was 25%, clearly indicating that thermal storage

systems of the power plants were not used to their full potential. Hydro power plants

achieved an average CF of 63% over the six-month period.

Page 13: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

13

Figure 7: Capacity factors of solar PV technology power plants [Data sourced from IPPs, July 2017]

Figure 8: Capacity factors of wind technology power plants [Data sourced from IPPs, July 2017]

Figure 9 shows the average daily contribution of REIPPP power plants to the total

power system. The data shown for the Eskom fleet (brown plot) includes the Cahora-

Bassa import hydro power plant. During the first half of 2017, the average daily

contribution of RE to the power system was about 3.6%. By the end of the year, it is

expected that the RE IPPs will contribute approximately 7% to the total capacity of the

power system.

Average Wind CF = 31%

Page 14: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

14

Figure 9: Daily contribution of RE on the power grid from 01 January to 31 May 2017 [Data sourced from Eskom and IPPs, July 2017]

5.2. Hourly energy profiles

Figure 10 overleaf shows the normalised hourly profile of RE power plants3 for three

seasons in 2017. It can be seen from figure that solar PV technology produced more

than 70% of its maximum capacity around noon for the three seasons shown. It is

also evident from the figure that in summer and autumn months, CSP power plants

fed less power to the grid around noon than in winter months.

3 Hourly MW produced are normalised by rated capacity of the power plant.

Page 15: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

15

Figure 10: Normalised Average Daily energy profiles of CSP, Wind and Solar PV over three seasons in 20174

6. Renewable Energy Power Costs of REIPPP

In this section, individual prices/tariffs of RE IPP project in commercial operation were

used to calculate the average price of different technologies based on the energy

collected from RE IPPs. It is important to note that the early operation energy and

curtailment energy is not included in this analysis. Table 5 shows the average prices

of operational projects per BW, based on energy data received from RE IPPs.

The total energy produced by RE IPP projects in the first half of 2017 was 3 761GWh,

at a cost of approximately R7.6 billion. This resulted in an energy-weighted average

price of R2.02/kWh. The average prices of BWs 1, 2 and 3 are R2.59/kWh, R1.85/kWh

and R1.08/kWh, respectively. It is evident from Table 4 that the average prices of BW2

and BW3 are cheaper than BW1. This reduction in prices of subsequent BWs is

expected to decrease the overall average price of RE going forward. The Landfill gas

technology average price has not been included in this analysis since there is currently

one project in commercial operation.

4 Renewable Energy Data and Information Service of DoE (REDIS) website: http://redis.energy.gov.za, last accessed 20

August 2017.

Summer Autumn Winter

Page 16: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

16

Table 5: Average prices of RE IPP projects per BW in the first half of 2017 [Data sourced from IPPs and Eskom, July 2017]

Average Price (R/kWh)

PV Wind CSP Hydro Average Price per BW

BW1 3.686 1.607 3.832 n/a 2.588

BW2 2.476 1.359 3.680 1.493 1.853

BW3 1.270 0.727 n/a n/a 1.076

Energy Production (MWh)

PV Wind CSP Hydro Total Energy per BW

BW1 646 205 865 499 112 396 n/a 1 624 100

BW2 460 450 843 900 78 148 35 214 1 417 712

BW3 462 077 257 267 n/a n/a 719 344

Grand Total 3 761 156

Cost (R Millions)

PV Wind CSP Hydro Total Cost per BW

BW1 2 382 1 391 431 n/a 4 204

BW2 1 140 1 147 288 53 2 628

BW3 587 187 n/a n/a 774

Grand Total 7 606

7. Job creation and economic development under REIPPP

The RE IPPs under the procurement programme of the DoE submit human resource

information through NERSA’s Generation Forms (G-Forms) four to six months after

their financial year end. Data collected from IPPs in FY2015/16 and in 2017 was used

in this analysis. The responses received were from BW1 and BW2 RE IPP projects.

Tables 6 and 7 list reported jobs created during commercial operation and the amount

spent on Socio-Economic Development (SED) by the power plants of BWs 1 and 2,

respectively. The data represents power plants that were able to submit information

to NERSA. In BW1, 20 projects out of a total of 28 projects submitted information on

job creation. For BW2, NERSA received responses from 14 out of 17 projects.

Page 17: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

17

Table 6: Bid window 1 Job creation under REIPPP [Data sourced from IPPs, August 2017]

Technology MW Projected jobs (operation)

Actual jobs (operation)

Economic development (amount spent) (R’ mil)

Wind 412.2 74 160 35. 45

Solar Photovoltaic 407.5 421 400 61. 80

Concentrated Solar Thermal Power

150 70 159 Not provided

Total 969.7 565 719 97. 25

Table 7: Bid window 2 Job creation under REIPPP [Data sourced from IPPs, August 2017]

Technology MW Projected jobs (operation)

Actual jobs (operation)

Economic development (amount spent) (R' mil)

Wind 459.38 84 47 6.4

Solar Photovoltaic 422.2 264 109 16.8

Concentrated Solar Thermal Power

50 48 17 Not provided

Total 931.58 396 173 23.2

The total number of reported jobs during commercial operation for BW1 and BW2 are

719 and 173, respectively. In other words, the jobs reported by the 35 IPPs from BW1

and BW2 is 892. This amount excludes jobs created by operations and maintenance

companies contracted by RE IPPs. It has been observed that during operation, other

companies are contracted by IPPs to undertake operation and maintenance of more

than one power plant, and this results in fewer actual jobs for the total number of power

plants. The projected target of jobs during operation for the 35 IPPs was 961 jobs. This

implies that these IPPs fell short by 69 jobs. Further analysis is required in order to

establish the impact of REIPPP in job creation. The IPPs who could not submit the

information on socio-economic development obligations are expected to submit it

before end of February 2018.

Ten projects from BW1 submitted information about the amount spent on SED. The

reported total amount spent on SED for BW1 was R97.25 million. For BW2, the

reported total SED amount spent was R23.20 million, coming from five projects that

submitted information. So far, the total SED amount spent by 19 IPPs projects that

submitted information to NERSA from BW1 and BW2 was approximately

R120.5 million.

Page 18: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

18

8. Renewable Energy Power Plants not under IPP

Procurement Programme of the Department of Energy

Table 8 shows the list of 24 renewable energy power plants not in the REIPPP of the DoE.

The total licensed capacity of these power plants is nearly 834.50MW. Of this capacity,

818.55MW is in commercial operation.

Table 8: Renewable Energy Power Plants outside REIPPP of the Department of Energy [Data sourced

from Licensees, March 2017]

Renewable Energy Power Plant

Capacity(MW) Technology /Resource type

Location Status

Independent Power Producers

Merino 4 Hydro Bethlehem, Free State Operational

Sol Plaatjie 3 Hydro Bethlehem, Free State Operational

Darlipp (Pty) Ltd 5.2 Wind Windhoek Farm, Darling, Western Cape

Operational

Shepa Trade 2.5 Biomass Mpumalanga Under construction

Electrawinds 1.8 Wind Nelson Mandela Bay Municipality

Operational

Mpact Piet Retief 16 Baggase Piet Retief , Mpumalanga Operational

Friedenheim Hydro Electric Power Station

2.5 Hydro Nelspruit, Mpumalanga Operational

Bronkhorstspruit Biogas Plant

4.2 Biogas Bronkhorstspruit, Gauteng Under construction

AC Witcher 5.67 Biomass Eastern Cape Operational

Illovo 6.5 Bagase KZN Operational

CPV Powerplant No. 2 (Pty) Ltd

0.477 Solar CPV KZN Operational

L'omarins 2.4 Hydro Western Cape Operational

Green Grid Energy (Pty) Ltd

3.6 Biomass KZN Under construction

Port Elizabeth Solar PV1 (Pty) Ltd

5.691 Solar PV Estern Cape Under construction

Municipal Power Plants

Lydenburg 2 Hydro Lydenburg Dorpsgrond Operational

Piet Retief Hydro 0.6 Hydro Mkhondo Municipality Operational

Clanwilliam Dam Hydro Power Station

1.5 Hydro ClanWilliam, Western Cape

Operational

Eskom Power Plants

Gariep Dam 360 Hydro Norvalsport/Between Free State & Northern Cape

Operational

Vanderkloof Dam 240 Hydro Petrusville/Between Free State & Northern Cape

Operational

Transkei hydro Colleywobbles

42 Hydro Mbashe River/ Eastern Cape

Operational

Transkei Hydro First Falls 6 Hydro Umtata River/ Eastern Cape

Operational

Transkei Hydro Second Falls

11 Hydro Umtata River/ Eastern Cape

Operational

Ncora Dam 2.1 Hydro Umtata River/ Eastern Cape

Operational

Sere Wind Farm 105.8 Wind Western Cape Operational

Total Capacity (MW) 834.54

Page 19: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

19

This means that the total capacity of all licensed RE power plants in commercial operation,

including 3 271.25MW of REIPPP projects, is 4 089.80MW.

The power plants that reported energy production in the period 01 January 2017 to 30 June

2017 are listed in Table 9 below. Their total installed capacity is approximately 134.8MW.

Table 9: Reported RE Power Plants not in REIPPP of the Department of Energy [Data sourced from

Licensees, March 2017]

Renewable Energy Power Plant Capacity(MW)

Clanwilliam Dam Hydro Power Station 1.5

Darlipp (Pty) Ltd 5.2

Electrawinds 1.8

Friedenheim 2.5

Lydenburg Hydro 2

Mpact Piet Retief 16

Sere Wind Farm 105.8

TOTAL CAPACITY 134.8

Figure 11 below show the energy production of power plants listed in Table 6 above. Their

total energy production from 01 January to 30 June 2017 was nearly 60 871MWh. The

increase in energy production for May and June 2017 is due to data that NERSA began

receiving from Eskom’s Sere Wind Farm.

Figure 11: Reported Energy of Power Plants outside REIPPP of DoE from 01 January to June2017 [Data sourced from

IPPs and Eskom]

Page 20: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

20

9. Concluding Remarks

A total of 58 RE IPP power plants from BWs 1, 2 and 3 are in commercial operation.

As of 15 August 2017, the total capacity from the REIPPP in commercial operation is

3 271.25MW. Based on submitted energy production data by IPPs in the first six

months of 2017, RE power plants produced nearly 3 761GWh. In the first six months

of 2017, the average monthly capacity factor for wind power plants was 31%, while

the average capacity factor of solar PV was 23%. In the first half of 2017, the average

cost of the energy produced by RE IPP projects under the REIPPP was approximately

R7.6 billion, resulting in an average price of R2.02/kWh.

The reported total number of jobs during operation from 35 IPPs of BW1 and BW2 of

the REIPPP is 892. A further investigation and analysis is required in order to establish

the benefits of the projects in terms of job creation and socio-economic development.

The total ED amount spent by 19 IPP projects that submitted information to NERSA

from BW1 and BW2 was approximately R120.5 million.

The other licensed RE power plants not in the REIPPP of the DoE have a total capacity

of nearly 835MW. In the first half of 2017, the energy production reported from seven

of these power plants was approximately 61GWh.

Page 21: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

21

APPENDIX A: Distribution of All Renewable Energy

Projects in South Africa

Figure A2: Renewable Projects across South Africa. Map includes non-RE IPPP projects [Sourced form

REDIS, July 2017]

Wind

CSP

Solar PV

Hydro

Biomass

Landfill

Page 22: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

22

APPENDIX B: List of all RE IPP in Commercial Operation

under the Procurement Programme of the Department of

Energy Table A1: REIPP projects in commercial operation [Data sourced from IPPs]

Power Plant Province Technology Contracted Capacity (MW)

Achieved Capacity (MW)

Achieved COD

155 RustMo1 NW Solar PV 6.93 6.93 15-Nov-13

202 Hopefield WC Wind 65.4 65.4 01-Feb-14

138 MetroWind EC Wind 27 27 07-Feb-14

159 Kalkbult Solar PV NC Solar PV 72.5 72.4 19-Mar-14

163 Aries Solar PV NC Solar PV 9.65 9.65 20-Mar-14

128 Konkoonsies Solar PV NC Solar PV 9.65 9.65 20-Mar-14

182 PV De Aar (SAMR) NC Solar PV 45.6 45.6 05-Apr-14

572 Droogfontein (SAMR) NC Solar PV 45.6 45.4 06-Apr-14

696 Herbert Solar PV NC Solar PV 19.98 19.9 11-Apr-14

443 Greefspan Solar PV NC Solar PV 9.9 9.9 11-Apr-14

123 Dassieklip WC Wind 27 27 07-May-14

186 Jeffreys Bay (SAMR) EC Wind 138 135.11 15-May-14

031 Letsatsi FS Solar PV 64 64 21-May-14

032 Lesedi FS Solar PV 64 64 21-May-14

523 Linde * NC Solar PV 36.8 36.8 30-Jun-14

052 Soutpan LP Solar PV 28 27.94 04-Jul-14

036 Nobelsfontein NC Wind 75 73.8 12-Jul-14

064 Mulilo de Aar NC Solar PV 10 10 19-Jul-14

375 Vredendal* WC Solar PV 8.8 8.8 31-Jul-14

764 Upington Solar * NC Solar PV 8.9 8.9 31-Jul-14

043 Dorper EC Wind 97.53 97.53 09-Aug-14

564 Solar Capital de Aar NC Solar PV 75 75 15-Aug-14

444 Reisa Kathu NC Solar PV 75 75 15-Aug-14

035 Witkop LP Solar PV 30 29.68 20-Sep-14

065 Mulilo Prieska NC Solar PV 20 19.93 01-Oct-14

750 Boshoff * WC Solar PV 60 57 25-Oct-14

225 Cookhouse EC Wind 138.6 135.8 19-Nov-14

207 Sishen * NC Solar PV 74 74 29-Nov-14

037 Touwsrivier (CPV No.1) WC Solar PV 36 36 05-Dec-14

562 Jasper * NC Solar PV 75 75 17-Dec-14

373 Aurora Rietvlei * WC Solar PV 9 8.9 23-Dec-14

527 Dreunberg * EC Solar PV 69.6 69.6 31-Dec-14

815 Kakamas Hydro* NC Hydro 10 10 31-Jan-15

118 Kaxu Solar One NC CSP 100 100 06-Feb-15

148 Kouga Red Cap EC Wind 80 77.7 17-Mar-15

364 Grassridge * EC Wind 59.8 59.8 06-Jun-15

309 West Coast (Aurora)* WC Wind 90.82 90.82 09-Jun-15

164 SlimSun* WC Solar PV 5 5 05-Aug-15

014 Gouda* WC Wind 135.5 135.5 28-Aug-15

372 Chaba* EC Wind 21 21 12-Sep-15

362 Waainek* EC Wind 23.28 23.28 10-Jan-16

798 Khi Solar One NC CSP 50 50 05-Feb-16

002 Bokpoort CSP* NC CSP 50 50 18-Mar-16

168 Solar Capital De Aar 3* NC Solar PV 75 75 02-Apr-16

0028_004 Noupoort Wind Farm** NC Wind 79.05 79.05 11-Jun-16

0269_002 Mulilo Sonidix Prieska PV** NC Solar PV 75 75 22-Jul-16

240 Amakhala* EC Wind 137 133.7 28-Jul-16

490 Stortemelk* NC Hydro 4.22 4.22 29-Jul-16

0269_003 Mulilo Prieska PV 4** NC Solar PV 75 75 05-Aug-16

303 Tsitsikamma* EC Wind 94.8 93.68 17-Aug-16

0338_001 Tom Burke Solar Park** LP Solar PV 64 64 29-Aug-16

0077_001 Paleisheuwel** WC Solar PV 75 75 12-Oct-16

0024_002 Nojoli** EC Wind 86.6 86.6 31-Oct-16

0029_001 Robinsons Deep; Goudkoppies **

GP Landfill 8.5 5.28 26-Nov-16; 25- Apr- 17

Adams Solar PV** NC Solar PV 75 75 23-Jan-17

Pulida** FS Solar PV 75 75 23-Jan-17

Red Cap Gibson Bay** EC Wind 110 110 28-Apr-17

Xina Solar One *# NC CSP 100 100 01-Aug-17

TOTAL COMMERCIAL CAPACITY 3292.01 3271.25

Page 23: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

23

APPENDIX C: Provincial Allocation RE IPP Projects

PROVINCE RE IPP PROJECTS TOTAL CAPACITY

(MW)

Gauteng Province

One REIPP power

plant;

Landfill Gas power

plant

18MW contracted

capacity

Annual Expected Energy

of 81 116.67MWh (P50)

5MW in commercial

operation

Free State Province

Nine REIPP power

plants;

Two Hydro power

plants Wind power

plants;

Seven Solar PV

power plants;

228.1MW contracted

capacity

Annual Expected Energy

of 496 887MWh (P50)

203.4MW in commercial

operation

Limpopo

Three REIPP Power

Plants

Three Solar PV

power plants

122 MW of contracted

capacity

Annual Expected MWh of

253 466 MW (P50)

122MW in commercial

operation

Page 24: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

24

PROVINCE RE IPP PROJECTS TOTAL CAPACITY

(MW)

KwaZulu Natal

One REIPP Power

Plant

One Biomass power

plant.

16.5MW of

contracted

capacity

Annual expected

energy of

121 968MWh

(P50)

0MW in

commercial

operation

Eastern cape

Total of 17 REIPP

Power Plants;

16 Wind power

plants;

1 Solar PV power

plants.

1 509MW

contracted

capacity

Expected energy

5 067 212MWh

(P50)

1 071MW in

commercial

operation

Northern Cape

Total of 59 REIPP

power plants;

12 Wind power

plants;

39 Solar PV power

plants.

Seven CSP power

plants

One small-hydro

power plant

3 621MW of

contracted

capacity

Expected energy

11 144 032MWh

(P50)

1 354MW in

commercial

operation

Page 25: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

25

PROVINCE RE IPP PROJECTS TOTAL CAPACITY

(MW)

Mpumalanga

Two REIPP power

plants;

Two Biomass power

plants

30MW of

contracted

capacity

Expected energy

209 363MWh

(P50)

0MW in

commercial

operation

North West

Six REIPP power

plants;

Six solar PV power

plants

279.83MW of

contracted

capacity

Expected energy

596 981MWh

(P50)

6.93MW in

commercial

operation

Page 26: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

26

PROVINCE RE IPP PROJECTS TOTAL CAPACITY

(MW)

Western Cape

14 REIPP power

plants;

Eight Wind plants

Five solar PV power

plants

One Biomass power

plant

606.2MW of

contracted

capacity

Expected energy

1 769 395.80MWh

(P50)

509MW in

commercial

operation

Page 27: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

27

Glossary of Terms and Abbreviations

GLOSSARY

BID WINDOW

Means any of the procurement phases under the Renewable Energy Independent

Power Producer Procurement Programme of the Department of Energy.

CAPACITY FACTOR

Means the ratio of the power plant output over a period of time, to its potential output

if it were possible for it to operate at full nameplate capacity continuously over the

same period of time.

SOCIO-ECONOMIC DEVELOPMENT

Means development contributions that aimed towards a wide range of activities

including rural development, the environment, infrastructure, enterprises,

reconstruction of undeveloped areas, development programmes for women or youth,

education, health care as well as arts and culture and sports.

ENERGY REGULATOR

Means the regulatory authority established as a juristic person in terms of Section 3 of

the National Energy Regulator Act, 2004 (Act No. 40 of 2004).

GOVERNMENT

Means the Government of the Republic of South Africa, and any of its departments,

agencies or other entities that it manages or controls.

GIGAWATT HOUR

Energy unit in which electricity consumption is measured. 1GWh = 1000MWh.

Page 28: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

28

INDEPENDENT POWER PRODUCER (IPP)

IPPs are defined as typically limited-liability, investor-owned enterprises that generate

electricity either for bulk sale to an electric utility or for retail sale to industrial or other

customers with certain conditions.

MEGAWATT HOUR

Energy unit in which electricity consumption is measured. 1MWh = 1000kWh.

MINISTER

Means Minister of Energy

RENEWABLE ENERGY (from the 2003 White Paper on Renewable Energy)

Renewable energy harnesses naturally occurring non-depletable sources of energy,

such as solar, wind, biomass, hydro, tidal, wave, ocean current and geothermal, to

produce electricity, gaseous and liquid fuels, heat or a combination of these energy

types.

Page 29: Monitoring RENEWABLE ENERGY PERFOMANCE OF ...nersa.org.za/Admin/Document/Editor/file/Electricity...3 1. Background on Renewable Energy Support in South Africa In terms of section 4

29

ABBREVIATIONS

BW Bid Window

CF Capacity Factor

COD Commercial Operation Date

CSP Concentrated Solar Power

DoE Department of Energy

IPP `. Independent Power Producer

IRP Integrated Resource Plan

MW Megawatt

MWh Megawatt hour

NERSA National Energy Regulator

PV Photovoltaic

RE Renewable Energy

REIPPP Renewable Energy Independent Power Producer

Programme

SED Socio-Economic Development

TWh Gigawatt hour