Dec 23 2010
Coega Development (CDC) is planning to include several renewable energy projects, which would contribute to almost 480 MW to the national grid by the year 2013. A few of the projects were still in the pre-feasibility phase while others were in the feasibility stage. Environmental impact assessments were being considered for three projects.
According to the CDC’s Manager for Business Development, Nkuli Mxenge, the construction work on many of the projects would begin by either 2011 end or mid 2012. He further mentioned that the wind projects would contribute either 250 MW or 480 MW contingent on the usage of 3MW or 4MW wind turbines. He also revealed that this could be accomplished only if electricity generation permits were obtained in the course of the next year.
The Chief Director for Electricity, with the Department of Energy, Thabang Audat, stated that the government had not called for any request for proposals for renewable energy projects. He disclosed that they were trying to decide on critical template documentation such as transmission connection agreements, power purchase agreements and direct agreements with the National Treasury. The request for proposals would be issued only after all this was finalized, after which procurement processes and generation licenses would be given to suitable developers. He also stated that the departments had a target for the finalization of documents by February next year.
The projects that are being planned would be in the Coega Industrial Development Zone, (IDZ) which the CDC operates. It is thought to fetch an amount of R 3.5 Billion. At present the definite investment for the three wind projects is around R 2.5 billion. Electrawinds from Belgium is one of the investors. It is the owner of the 1.8MW test turbine in the IDZ that has provided power to the Nelson Mandela Bay Stadium throughout the FIFA World Cup. Innowind and Universal Wind are the other investors.
Plans are also being drawn for two biodiesel projects, which would attract investments worth R 3 billion. Mxenge revealed that four companies in Germany were negotiating with CDC currently for the development of solar energy projects. He also divulged that the existing biomass project called EC Biomass was producing wood pellets and exporting them to Scandinavia. Other biomass projects were still in the pre-feasibility stage. Financial closure stage was reached by two biodiesel projects with investors from Germany and Australia.
According to Mxenge, wind energy projects had the most merit but other renewable energy resource projects would also be considered. He revealed that biogas would most probably be overlooked as there was no critical mass of waste, which could be used as input inside the IDZ. The biogas project may be considered by the Nelson Mandela Bay Municipality closer to the rubbish dumps. If the projects gain approval they would create 6825 jobs, both direct and indirect.
Source: http://www.coega.co.za/