OVERVIEW Energy Private
OVERVIEW Energy Private generation is picking up. The concentrator at Mogalakwena Mine requires vast amounts of energy. Credit: Anglo American PGM miner Ivanhoe Mines wants to be procuring some of the power it needs for its Platreef mine from green sources by 2023. The mining company is building its own 5MW solar plant and has also signed an offtake agreement with Renergen to have access to the electricity generated by that company’s gas and solar power plant in the Free State province. Renergen is powering ahead with a project to produce helium and liquified natural gas at its Virginia Gas Project. Both Special Economic Zones in Limpopo are making a play for the green hydrogen market. This is discussed in a Special Feature elsewhere in the journal. The Musina-Makhado SEZ has also signed an agreement with a Chinese company for the first phase of a project that will supply 1 000MW of solar power to support the SEZ’s metallurgical complex. The two local municipalities in the area have been allocated R147-million by provincial government for infrastructure upgrades, including electricity. The Fetakgomo-Tubatse SEZ also has intentions of attracting green power. One of the region’s biggest minerals-processing companies, Samancor Chrome, intends building a solar photovoltaic (PV) plant that will deliver up to 60MWp-capacity (Mining Weekly). The current will be converted and sent to the Samancor grid in support of the Tubatse ferrochrome smelter. The company has appointed consultants to carry out a heritage impact assessment on the farm Goudmyn in the Fetakgomo Local Municipality. A new public-private planning exercise, known as Impact Catalyst, is working on focus areas which include biofuels and intends to prepare the province to deal with the emergence of new sectors such as renewable energy. ONLINE RESOURCES National Energy Regulator: www.nersa.org.za South African Independent Power Producers Association: www.saippa.org.za South African National Energy Development Institute: www.sanedi.org.za South African Photovoltaic Industry Association: www.sapvia.co.za SECTOR INSIGHT A Chinese company will build a solar plant in the north. Two of the province’s other big mining companies have also announced plans to generate their own power. Exxaro’s huge coal mine at Grootgeluk (which supplies Eskom power plants) will be the site of an 84MW solar project and Northam Platinum plans to build a 10MW solar plant at its Zondereinde smelter. The Northam plant should be operational in early 2023 and the company expects to recoup its investment within four years. The concentrator of the Mogalakwena Mine run by Anglo American Platinum (Amplats) relies on constant and reliable electricity supply. With energy comprising a significant portion of costs and Eskom experiencing difficulties in terms of its debt and its ability to supply reliable power, the mining company is investigating the installation of a large solar PV project. Implats is already using natural gas to supply its refinery in Springs. In Phase one of the project 20 Doosan fuel cells are generating 8MW of power. The long-term goal is to generate 22-30MW. ■ LIMPOPO BUSINESS 2022/23 48
Bid Window 6 doubled to cope with crisis Excerpts from President Cyril Ramaphosa’s address to the nation on the energy crisis on 25 July 2022. ENERGY Credit: GCIS The set of additional actions I am announcing this evening firstly, are aimed at improving the performance of Eskom’s existing fleet of power stations. Secondly, will accelerate the procurement of new generation capacity. Thirdly, are intended to massively increase private investment in generation capacity. Fourthly, are designed to enable businesses and households to invest in rooftop solar. Finally, are directed at fundamentally transforming the electricity sector and positioning it for future sustainability. To end loadshedding, however, we need to urgently add much, much more capacity to the grid. Our second priority is therefore to accelerate the procurement of new capacity from renewables, gas and battery storage. The relevant government departments are working together to ensure that all projects from Bid Window 5 of the renewable energy programme can start construction on schedule. This includes taking a pragmatic approach to the local content requirements for these projects, prioritising the need to build new capacity as quickly as possible. The Department of Trade, Industry and Competition, together with the Independent Power Producers Office, will provide further details. The amount of new generation capacity procured through Bid Window 6 for wind and solar power will be doubled from 2 600MW to 5 200MW. We will release a request for proposals for battery storage and a further request for gas power thereafter. The Minister of Mineral Resources and Energy will issue a determination for the remaining allocations in the Integrated Resource Plan 2019 and will open further bid windows on an expedited basis. To ensure effective planning, the country’s Integrated Resource Plan is being reviewed to reflect the need for additional generation capacity and our climate commitments. Third, we are accelerating greater private investment in generation capacity. Last year we announced the raising of the licensing threshold to 100MW. This move was widely welcomed. It has unlocked a pipeline of more than 80 confirmed private sector projects with a combined capacity of over 6 000MW. We are already working together with industry to accelerate the most advanced projects, several of which are already entering construction. These changes have fundamentally changed the generation landscape. Following the success of this reform and the enthusiasm shown by the private sector, we will remove the licensing threshold for embedded generation completely. This will enable private investment in electricity generation to rise to higher levels. While they will not require licences, all new generation projects will still have to register with the regulator and comply with the technical requirements for grid connection and our environmental legislation. ■ 49 LIMPOPO BUSINESS 2022/23
