CONTENTS 2. PROJECT DESCRIPTION NEED FOR THE PROJECT ABOUT THE PROPONENT SITE SELECTION OVERVIEW OF THE PROJECT 2 5

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2 CONTENTS 2. PROJECT DESCRIPTION NEED FOR THE PROJECT ABOUT THE PROPONENT SITE SELECTION OVERVIEW OF THE PROJECT 2 5 Figure 2.1: Provisional wind profile for the Jeffrey s Bay site showing daily and seasonal variation 2-5 Figure 2.2: A 2.3 MW turbine: A representative of the type of wind turbine proposed for this project 2-6 Figure 2.3: Jeffrey s Bay Proposed Wind Farm and Land Parcels 2-8 pg 2-1

3 2. PROJECT DESCRIPTION This chapter is based on information provided by Mainstream Renewable Energy Jeffrey s Bay. A description of the site location, road access to the site and adjacent land use is provided in Chapter 3. Mainstream Renewable Power Jeffrey s Bay (Pty) Ltd is proposing the construction of a wind energy facility near Jeffrey s Bay in the Kouga Municipal area of the Eastern Cape Province. The proposed project, referred to as the Jeffrey s Bay Wind Project, will utilise wind turbines with a combined generation capacity of a maximum of 180 MW. This proposed 180 MW facility will include the Kouga Wind Project of approximately 16 MW proposed by Genesis Eco-Energy and for which an environmental authorisation was obtained in March As explained below, Genesis Eco-Energy has since entered into a joint venture with Mainstream Renewable Power South Africa (referred to as Mainstream SA ). A 180 MW wind project could produce enough electricity to power approximately typical Eastern Cape households 1 in a year, or approximately 25-30% of the power demand of the Nelson Mandela Metropolitan area, when at full generation capacity. 2.1 NEED FOR THE PROJECT The National government has set a renewable energy target and is promoting renewable energy using mechanisms such as the favourable renewable energy feed-in tariffs announced in April These tariffs are intended to stimulate the development of renewable energy projects, such as wind farms. At a national scale, renewable energy (in particular, wind energy) has the potential to play an important role in meeting South Africa s energy demand through diversifying the sources of power generation whilst reducing the country s carbon footprint from coal power generation. Currently, approximately 90% of South Africa s power generation is derived from coal. A 180 MW wind farm would offset 513,721 tonnes of CO 2 per year or tonnes of CO 2 over the lifetime (25 years) of the project. Wind farms have a relative short construction lead time and could therefore be quickly installed to meet South Africa s power need. The project will also make a significant contribution to meeting provincial power supply requirements. The Eastern Cape Province is reliant on electricity supply from other provinces, and is currently limited by both generation and transmission capacity. This situation is restricting the significant industrial and rural development potential of the province, for example, at the major metropolitan centers such as Port Elizabeth and East London. At a local scale, this wind energy project will contribute to improved energy stability and security of supply. In the Kouga area, secondary agricultural processing companies and both small and commercial scale farmers experience an unreliable supply of electricity. In the towns of Jeffrey s Bay and Humansdorp, the power supply is struggling to meet the local demand. These towns are most severely affected by power failures as they consume more than 75% of the Kouga municipal 1 Were a typical Eastern Cape household uses 1500 kwh per annum. In South Africa, usage ranges from less than a 1000 kwh per year to over 8000 kwh per year. pg 2-2

4 energy supply. Furthermore, due to the length of the Eskom power lines from the power stations (e.g. in Mpumalanga) to the Kouga area, and the inherent characteristics of the Kouga network, the towns suffer from periodic power quality issues and voltage instabilities. Given these challenges, one of the objectives of the project is to help stabilize energy supply to the Jeffrey s Bay, Patensie, Hankey and Humansdorp area. The local economy, and local businesses who can benefit from the economic stimulation as well as emerging entrepreneurs who suffer from the power instability, will benefit from a more stable and reliable energy supply in the area. If built in this location the project could reduce system losses in excess of 11mil kw/h which is sufficient to power over 8000 households per annum. South Africa has a growing energy intensive economy which is highly reliant on fossil fuels: Ninety three percent of South Africa s energy is produced from coal fired power plants. SA currently has MW power generation capacity installed, with 248 Terawatt hours (TW/h) of electricity consumed annually. Current forecasts predict that SA will need almost twice today s electricity demand, doubling to approximately MW by Renewable energy reduces electricity generation costs: South African electricity is highly subsidised. Diversifying a country s portfolio of generation plants leads to lower overall generation cost. In other parts of the world wind power has reduced the long term price of electricity and has contributed to stabilising the price volatility of fossil fuels. It is seen as the cornerstone of German, British, Danish, and Spanish energy generation. Renewable energy reduces fossil fuel costs: Increased levels of renewable energy generation lower the demand for coal, oil & gas, reducing the price of these commodities and ultimately the cost of electricity. Renewable energy decreases greenhouse gas emissions: SA is currently the 12th largest polluter in the world and the largest in Africa. Renewable energy reduces carbon emissions, resulting in avoidable costs to the economy in terms of global obligations and the domestic social and economic impacts of such emissions Renewable energy increases water availability: Agricultural & economic yield is increased due to an increased availability of water resources that would have alternatively been used for coal-fired power generation. Renewable energy creates jobs: Large-scale renewable energy creates employment in the development, construction and operation of the wind farms, contributing to rural development, transferring skills and knowledge from abroad and enhancing a domestic manufacturing supply chain. Renewable energy aids grid stability: In certain areas, particularly in the south of the country, wind energy contributes to aiding grid stability. Wind power works: Wind is an internationally tried and tested reliable form of power generation. It is also the fastest growing form of power generation in the world with more than MW worth of energy facilities installed globally. It is forecasted that this figure will increase by more than MWs each year over the next decade. In 2008, more wind energy facilities were installed in Europe and the US than any other form of conventional or renewable form of power. South Africa has abundant reserves of wind and solar energy resources. South Africa has potential for more wind energy projects: A recent technical study carried out by Mainstream SA confirms that SA has the potential to generate over MWs of wind energy. This could contribute up to 42% of the country s forecast for total electricity demand by pg 2-3

5 2.2 ABOUT THE PROPONENT In early 2009, Mainstream Renewable Power South Africa (Mainstream SA) was formed by a joint venture agreement between Genesis Eco-Energy ( a South African renewable energy development company and Mainstream Renewable Power ( a Dublin (Ireland) -based company. The vision for Mainstream SA is to develop, build and operate in excess of 500 MW of wind and Concentrated Solar Power (CSP) projects across South Africa by Genesis Eco-Energy has a long history in promoting renewable energy in South Africa and has been developing the Phase 1 Kouga Wind Project (of approximately 16 MW) since The 16 MW project is to be located on Sunnyside Farm off the R102 road, near Jeffrey s Bay. The project received environmental authorization in March Mainstream Renewable Power was established in February 2008 to develop, build and operate renewable energy plants in collaboration with strategic partners across South Africa, Europe, North America and South America. Mainstream SA is based in Cape Town and Johannesburg. For the Jeffrey s Bay Wind Project, the proponent is Mainstream Renewable Power Jeffrey s Bay (Pty) Ltd, which is a Special Purpose Vehicle set up specifically for this project by Mainstream SA. 2.3 SITE SELECTION In the pre-feasibility stage of the Phase 1 project (16 MW) sites were considered in the wider Southern and Eastern Cape regions, leading to the selection of the Kouga area for more detailed studies and wind monitoring for the project. The Kouga region was seen as an ideal area for this project due to the following factors: The wind regime in the area appears favourable (see Figure 2.1). Eskom power lines are in close proximity to the proposed site. There were willing landowners. Access to the site was viable. Initial investigation suggests there are few additional constraints to the development of the wind farm in the immediate area. There is a need for additional energy capacity to support and stimulate economic growth. The network within the Kouga area can benefit from a localized power plant to stabilize the grid. The need for regional economic stimulus that a development of this kind could bring. pg 2-4

6 Figure 2.1: Provisional wind profile for the Jeffrey s Bay site showing daily and seasonal variation A typical 2.3 MW turbine starts producing electricity at approximately 4 m/s. Maximum power is generated at approximately 13m/s. Power output stays constant up to about 25m/s where most modern turbines will shut down to protect themselves from damage. 2.4 OVERVIEW OF THE PROJECT The objective of the project is to generate electricity to feed into the national grid by installing a wind farm with a maximum capacity of 180 MW. The key components of the project are (see Figure 2.3): Wind turbines 40 to 85 turbines (number dependent on capacity of turbines selected in the range between 1.5 and 3 MW), with an expected hub height in the range 60 to 100 m and a blade diameter in the range 70 m to 120 m. Turbines to be supported on reinforced concrete foundations with an approximate size 20m x 20m x 2.5 m depth. Electrical transformers will be placed beside each turbine. Gravel surfaced hard standing areas (approximately 40 m x 20 m) adjacent to each turbine for use by cranes during construction and retained for maintenance use throughout life span of the project. pg 2-5

7 Blade diameter = 70 to 120 m Hub height: 60 to 100 m Figure 2.2: A 2.3 MW turbine: A representative of the type of wind turbine proposed for this project pg 2-6

8 Electrical connections The wind turbines typically will be connected to each other and to the substation using medium voltage cables which will, in most cases, be buried approximately 1 m below ground, except where a technical assessment of the proposed design suggests that overhead lines are appropriate. A new sub-station (with an approximate compound size of 90 m x 120 m) and a transformer with a connection of maximum 500 m, will be built to the 132 kv Eskom grid. The substation will preferably be located close to the 132 kv line. The connection from the substation to the Eskom grid line is a stretch of overhead line supported on an intermediate pole(s), depending on the location of the substation relative to the 132 kv line. Other infrastructure Operations and maintenance building: A single storey building, approximately m 2, with warehouse / workshop space and access, office and telecoms space, security and ablution facilities as required. Preferably these should be situated preferably close to the substation. Fencing will be erected as required. One to two permanent wind measuring mast /s of 70 m 100 m (covered by the Basic Assessment process for which authorization was received on 30 June 2010). Roads Gravel surfaced access roads will be constructed or upgraded from the public road to the turbine sites. Three permanent access route options and one temporary access route, for the construction period, are proposed. An internal road network to the turbines and other infrastructure (substation and operation and maintenance building) will be constructed. The road network may include turning circles for large trucks, passing points and culverts over gullies and rivers. All roads that will be used for the transport of wind turbine components will have a width of approximately10 m, which serves as the road servitude, including cabling and drainage. As far as possible upgrading of certain existing roads will take place. pg 2-7

9 Figure 2.3: Indicative layout for the proposed wind farm pg 2-8

10 Temporary activities during construction Lay down areas will have to be prepared, beside an access route, for the assembly of the turbine components. The lay down areas will cover an area of approximately 10,000 m 2 this hard standing area could be temporary or if the landowner prefers, left for long-term use. The overall site compound for all contractors would be an approximately of 5000 m 2. Approximately 5 borrow pits, which are subject to appropriate permits; will be distributed around the site. Existing borrow pits will be used as far as possible. The size of these pits will be dependent on the terrain and need for granular fill material for use in construction. At the end of construction these pits will be backfilled as much as possible using surplus excavated material from the foundations and vegetation will be rehabilitated as indicated in the EMP. The construction and commissioning phase is expected to require between 12 and 24 months. The operational life of the wind turbines is expected to be a minimum of 25 years. Turbine life can be extended beyond 25 years through regular maintenance and/or upgrades in technology. The final choice of the type of turbines will be based on, amongst other criteria, ease of erection, availability and suitability to the wind regime. Although an indicative layout, see Figure 2.3, is available, exact turbine positions will only be established once sufficient wind data has been received from the wind monitoring masts that will be installed on the proposed site. In order to minimize impact on sensitive environments, a map with no-go areas has been developed with input from all the specialists and based on international wind farm planning buffer standards. These no-go areas will be avoided during development of the wind farm. Wind turbines can be operated in parallel with farming activities. Internationally it is common practice for farming activities to take place in tandem with an operational wind farm. This leads to greater efficiency of land use and no loss of economic activity with the benefit of an additional passive income for the landowner. Internationally, wind turbines and related components take up between 2% and 5% of the surface area of the wind farm, allowing other activities such as grazing to continue undisturbed. pg 2-9