Transcript CSP Project Development

Eskom CSP / Solar Augmentation Conference
CSP Project Development
Marc Immerman
Director Solafrica
Contents
• Bokpoort Introduction
• Key Project Facts
• Project Benefits
• Regulatory & Licensing Challenges
• Financial Challenges
• Why?
Bokpoort CSP 50MW Trough
Major Project Participants
EPC:
TSK, Acciona,
Sener, Crowie
O&M:
ACWA ,
Invest in
Africa
Senior
Lenders:
Investec,
ABSA,
OMSFIN
Equity:
Lereko Metier
Funds,
ACWA Power,
PIC,
Kurisani,
Local
Community
Developers:
Marc
Immerman,
Mike
Goldblatt,
Lereko,
Metier,
IDC,
ACWA
Key Facts
• Status: Successful bidder in R2 of the REIPPP, plant in early construction
• Technology: Trough
• Capacity: 50 MW incorporating 9.5 hrs storage
• Size: Approximately 300 hectares
• Location: South Africa, Northern Cape Province, Groblershoop. 120 km SE of Upington
• DNI: 2800
• Grid Connection: Garona Substation situated on Bokpoort Farm
• Development timeframe: 4 years
• Construction timeframe: 30 months
• PPA term: 20 years
Bokpoort Site: 120km SE of Upington
Project Benefits
•
•
Government Objectives
•
Renewable energy targets
•
Green economy priority (State of the Nation Address)
•
Industrial Policy Action Plan (CSP targets)
•
Electricity Integrated Resource Plan (CSP allocation)
•
Addressing South Africa’s severe energy shortage
Economic Development
•
ED / SED: Significant % of revenue to flow to BEE farming and youth development
•
Capital investment: 40% local content
•
Local investment: civil engineering, roadworks, site preparation, metals fabrication, etc.
•
Construction employment: ± 1,000 jobs from unskilled to highly skilled.
•
Permanent employment: ± 60 (formal, permanent jobs)
•
Numerous indirect benefits: transport, catering, tourism, real estate, fuel supply,
maintenance, waste management, etc.
Development Challenges
• Funding ~ risk-return
• Timeframes
• Complexity
• Limited pool of partners
• Grid, Water and Sun
• Varied experience and skillsets required
• Diverse technology options
Regulatory & Licensing Challenges
• Time consuming
• Expensive
• Co-ordination between multiple local, national and provincial
government departments
• Trailblazing
• Extensive detail required
• Agricultural land ownership and subdivision complexity
• Stakeholder engagement
• Local community engagement
Bokpoort – Regulatory Permits
Permit/Approval
Regulatory Agency
Environmental Authorisation (ROD)
Department of Environmental Affairs
Waste Management License
Department of Environmental Affairs
Water Use License
Department of Water Affairs
Obstacle Approval
Civil Aviation Authority
Grid Connection Confirmation Letter
Eskom
Land Use (Departure)
Land Use (Rezoning)
Biodiversity Consent
Heritage Consent
Local Municipality and Department of
Agriculture
Local Municipality and Department of
Agriculture
Department of Forestry and Department
of Nature Conservation
Heritage Resource Agency
Financial Challenges
• Significant investment tickets dictate large number of financing parties
• Limited pool of operational partners
• Scale of debt against average ticket size and number of banks in SA
• Perceived level of technology risk
• Scale of forex and interest rate swap
• EPC balance sheet
• O&M balance sheet
Why Develop CSP?
• Commercially proven storage capability
• Only large-scale renewable energy technology able to satisfy the peak
demand profile in South Africa
• ‘Less developed’ SS market and high level of local content presents an
opportunity for SA to participate meaningfully in supply chains
• Solar resource in SA
• Less competitive than PV and Wind
• Scale benefits
Thank you