ADAMS SOLAR PV PROJECT. Northern Cape PV Project 82,5MW PUBLIC HEARING KIMBERLEY 18 FEBRUARY 2014

Transcription

1 ADAMS SOLAR PV PROJECT PUBLIC HEARING KIMBERLEY 18 FEBRUARY 2014 Northern Cape PV Project 82,5MW

2 PROJECT COMPANY General information PREFERRED BIDDER IPPID RE_PV_0006_004 Adams Solar PV Project Two (Pty) Ltd 2012/114124/07 Preferred bidder in REIPPPP Round 3 Registered address: No. 3 Atherstone Bower, 77 King Edward Road, Lombardy East 2090 Johannesburg, South Africa PO Box 2005, Edenvale 1610 Tel: Alternative: riccardo.dalisera@enel.com 18/02/2014 NERSA PUBLIC HEARINGS 2

3 COMPANY STRUCTURE: SPV, EPC and O&M Contractors 3

4 THE SPONSOR COMPANY OVERVIEW Enel Green Power South Africa BV A subsidiary of Enel Green Power SpA, the Renewable company of Enel SpA the biggest Italian Electricity Group Established in 2013, specifically for participation in the Third Bid Submission Phase of the Department of Energy s IPP-Renewable Procurement Programme Awarded in the Third Bid Submission Phase for 6 Renewable Projects (4 PV and 2 WIND) > 500 MW Participating in Upington PV Project (Northern Cape) awarded during the Second Submission Phase, currently under construction Focused on long term presence and complex business plan in South Africa 4

5 ENEL GREEN POWER GLOBAL PRESENCE September 2013 North America Iberia & Latin America Italy&Europe Capacity: 1,679 MW Production: 4.9 TWh Technologies: Capacity: 2,898 MW Production: 8.5 TWh Technologies: 2 Capacity: 4,112 MW Production: 15.3 TWh Technologies: Capacity by technology Production by technology 57% 9% 38% 3% 30% 1% 2 2 Total = 8.7 GW Geo Hydro Wind Biomass Solar 20% 39% 2% 1% Reported capacity as of September 30, Reported production latest twelve months 2. Including co-generation 5 Total = 28.7 TWh

6 ENEL TODAY An international energy operator Presence in 40 countries Installed capacity 97,800 MW Annual production 296 TWh EBITDA 16.7 Bln Customers 61 million Employees 73,700 Capex Bln Stock exchange Enel is listed on the Milan stock exchange (~1.33 mln shareholders). 14 companies of the Group are listed on Milan, Madrid, Mosca, New York stock exchanges and in other Latin American countries Data as of

7 THE SPONSOR COMPANY OVERVIEW Enel Green Power South Africa BV The primary investment vehicle of the Royal Bafokeng Nation (RBN), a community of approximately Tswanaspeaking people in South Africa s North West Province Established in 2006 as a community-based investment company Holding assets across the mining, financial services, infrastructure, oil and gas services and industrial sectors Looking for stable and long term growing investments 7

8 LOCATION OF THE PV PLANT The Adams Solar PV project is situated in the Northern Cape Province, 21 kilometers south of Hotazel and 39 kilometers north of Kathu along the R380 tarred road joining these two towns, on the farm Adams 328. The site adjoins the tarred road to the east, while Mamatwan manganese mine (owned by the BHP Billiton mining group) occurs west of the tarred road and open pit excavations occur roughly 2 kilometers west of the site Latitude 27 22' 13.32" S` Longitude 23 05' 52.36" E 8

9 Use: Insert Classification PV PLANT GENERAL TECHNICAL INFORMATION Address: Farm Adams, Number 328, Portion 0 Kuruman RD, Joe Morolang Municipality Total Area: 275 ha Generation type: Solar Photovoltaic Plant (PV) Expected Commissioning: August 2016 Planned Capacity: 82.5 MWp DC Estimated annual output: 167 GWh average over 20 years Specific Output: 2032 kwh/kwp/annum CO2 Saved: tons/year Coal Saved: tons/year PV Module Technology: Thin Film Mounting Structure: Fixed ground mounted 14 x 3 portrait tilted at 20, oriented at 0 N 9

10 PV PLANT SITE & GRID CONNECTION 1/2 Use: Insert Classification The proposed construction of a line from the Project site to the Dougnor substation was dependant on the construction of a second line between the Dougnor Substation and the nearby Ferrum-Umtu 132kV line. This second line has been delayed and therefore it will no longer be possible for Adams Solar PV 2 to supply into the Dougnor substation. As a direct consequence the solution as presented in the Cost Estimate Letter is no longer feasible. The new solution under consideration involves the construction of a Switching Station adjacent to the Ferrum Umtu line. A line of roughly 700m between the on-site transformer and this switching station will be built. Eskom proposes this as a Self-Build project. 10

11 PV PLANT SITE & GRID CONNECTION 2/2 Use: Insert Classification New Ferrum- Umtum OHL ADAMS PV PLANT PV Plant Step Up Dougnor Station 132kV/32kV 700 m OHL between Step-Up and Switching Station Switching Station 11

12 LIST OF PERMITS Permit Status Comments EA Granted Date: 28/03/2013 Civil Aviation Granted Date: 17/06/2013 Heritage Consent Granted Date: 20/04/2012 Consent for Subdivision of Agricultural Land Expected Mid March Currently drafting approval letter Consent for Site Access Granted Date: 12/07/2013 SKA Approval Granted Date: 19/07/2013 DMR Consent Granted Date: 28/11/2012 LCC (Land Claim Consent) No Claims Date: 13/08/2012 Water General Authorization Submitted Consent to Change Land Use - Rezoning To be obtained prior to Financial Close Granted Approved by Municipality (22/01/2014) Building Plan Approval Pending To be obtained prior to Financial Close 12

13 FINANCIAL INFORMATION TIMING Construction Operations Start date 01-Jul Aug-16 Duration 25 months 20 years End date 31-Jul Jul-36 Capital Costs % of Total Modules 37.2% BOP 58.1% Land Acquisition 0.2% Development Costs 2.5% Connection - Eskom 0.3% Connection - EPC 0.6% Scada (BOP - Movable) 0.1% Engineering costs 0.1% Safety costs 0.9% Socio Economic Development 0.1% TOTAL 100% CAPEX SUMMARY AND DRAWDOWN PROFILE 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% ZAR costs 01-Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul-16 Cumulative Capex Spend 13

14 KEY TENETS OF IMPACTFUL ED 1. Learn from Historical Lessons Involve community from the beginning Plan for worker demobilisation 2. Compliance Is Threshold, Development Is Target 3. Give The Communities Voice 4. Recognise Existing Assets: Leverage Resources 5. Legacy achieved only through Sustainability 14

15 JOB CREATION Sub-Elements Complian ce Obligatio ns Constructi on Jobs Operations Jobs Beyond Compliance South African Citizens 93.34% 4 973pm= 414 jobs pm= 1443 jobs Youth and women ensuring representation via EPC contractors Black Citizens 78.06% 3 449pm= 287 jobs pm= 1265 jobs On-site apprenticeship for unskilled labour Skilled Black Citizens 56.24% 463pm = 39 jobs 3 500pm= 292 jobs Demobilisation strategy that will focus on postconstruction education (bursary) Local Citizens 61.81% 2 472pm = 206 jobs pm= 1023 jobs On-site training for O&M phase (diploma programmes) 15

16 LOCAL CONTENT Sub-Elements Compliance Obligations Beyond Compliance Key Components 51,87% Early identification of key suppliers- WOV, QSEs, SMES, local suppliers Local supplier Chain Support- formalisation & record keeping Educate SMMEs & WOV about RE Opportunities Marketing: Cross-project linkages despite different EPC/O&M 16

17 PREFERENTIAL PROCUREMENT Sub-Elements Compliance Obligations Beyond Compliance BBBEE 77,04% Early identification of key suppliers- WOV, QSEs, SMES, local suppliers QSE 17,7% Local supplier Chain Support- formalisation & record keeping Women Owned Vendors 5,26% Educate SMMEs & WOV about RE Opportunities Marketing: Cross-project linkages despite different EPC/O&M 17

18 MANAGEMENT CONTROL Sub-Elements Compliance Obligations Beyond Compliance Black People 100% 100% Black top management Women 50% Skills development in key areas to grow IPP specialisation Working with willing BEE partners to become true Energy Service Providers 18

19 ENTERPRISE DEVELOPMENT Sub-Elements Compliance Obligations Beyond Compliance Enterprise Development Contributions 0,6% Invest in ED during construction to leverage project opportunities Develop local industry to respond to the infrastructure needs of the sector & beyond Connect local enterprises to national & global value chains Create community-based development professionals Measure Impact, not just accounting for expenditure 19

20 SOCIO-ECONOMIC DEVELOPMENT Sub-Elements Compliance Obligations Beyond Compliance Socio-Economic Development Contributions 1,5% First SED project to be implemented during construction phase to avoid delayed social benefit Link skills development to enterprise opportunities to ensure post-qualification demand Measure Impact, not just accounting for expenditure Build a local development institution with research, fund-raising and project management capabilities 20

21 SOCIO-ECONOMIC NEEDS ASSESSMENT 45 Participants in focus groups drawn randomly from various communities 5 Semi-Structured Interviews with leaders ranging from Black Farmers Union to Govt. LED Officer Results of Primary & Secondary Data Analysis Community Priorities: 1. Health Care 2. Education 3. Jobs on existing infrastructure & mining projects IDP Priorities: 1. Water & Sanitation 2. Road Maintenance 3. LED- SMME Dev 21

22 DEFINING THE COMMUNITY Key Beneficiary Communities Tlapeng Tsineng Matoro Dinokaneng Tsineng-Kop Mokalanoga Magobing Magojaneng Masankong Kanana The PRA Tools also revealed the relative development status of each community Gasese Gatshekedi Maipeng 22

23 PROGRAMMATIC RESPONSE Construction Phase Agricultural exchange programme Enterprise Development Operations Phase (first 5 years) Community-Owned Jobs Fund ENELSI Training programme Starting Chance: ECD SMME Support Community Healthcare Targeted Need Agricultural skills Transfer & Social Cohesion Developing SMMEs to become procurement ready Targeted Need Job Creation & Bridging work experience gap Developing construction workers skills Addressing education from developmental phase Technical and financial support for new and existing entrepreneurs Developing NGO capacity to deal with diagnostic health services & mental wellness 23

24 ENEL GREEN POWER Flagship training programme A training programme to develop technical skills in solar photovoltaic, solar PV installation and general business management 1. Basics and advanced elements of electricity & solar photovoltaic 2. How to set up and manage an enterprise 3. Business plan of a solar PV installation 4. Client relationship management Key Outputs Trainees will be capable to deliver solar photovoltaic installations throughout South Africa. Graduates to set-up and manage small businesses individually or as small groups. Long-term Vision EGP franchising network for rooftop installations Preferential procurement for EGP Programme Graduates 24