MONITORING RENEWABLE ENERGY PERFORMANCE OF POWER PLANTS. Progress in the first half of 2017 (Issue 10)

Transcription

1 MONITORING RENEWABLE ENERGY PERFORMANCE OF POWER PLANTS Progress in the first half of 2017 (Issue 10) September 2017

2 Contents 1. Background on Renewable Energy Support in South Africa Implementation of Renewable Energy Ministerial Determinations Procurement of Renewable Energy Progress of Renewable Energy Independent Power Producer Programme (REIPPP) projects New utility scale RE Power Plants from the REIPPP Energy Production Monthly energy contribution Hourly energy profiles Renewable Energy Power Costs of REIPPP Job creation and economic development under REIPPP Renewable Energy Power Plants not under IPP Procurement Programme of the Department of Energy Concluding Remarks APPENDIX A: Distribution of All Renewable Energy Projects in South Africa APPENDIX B: List of all RE IPP in Commercial Operation under the Procurement Programme of the Department of Energy APPENDIX C: Provincial Allocation RE IPP Projects Glossary of Terms and Abbreviations GLOSSARY ABBREVIATIONS

3 1. Background on Renewable Energy Support in South Africa In terms of section 4 of the Electricity Regulation Act 2006 (Act No. 40 of 2006) ('the Act'), NERSA has a mandate to 'establish and manage monitoring and information systems and co-ordinate the integration thereof with other relevant information systems'. The Renewable Energy (RE) Independent Power Producers (IPPs) are required to submit reports on their monthly energy production, pursuant to section 15 of Grid Connection Code for Renewable energy version 2.9 of A number of policies have been enacted in order to enable renewable energy to be developed and implemented in South Africa. The 2003 White paper on Renewable Energy set a target of GWh by 2013 to be sourced from various renewable energy technologies. The Integrated Resource Plan (IRP) , currently being updated, outlines the preferred energy mix aimed at ensuring that the electricity demand is met over the 20-year planning period. In line with the national commitment to transition to a low carbon economy, MW of the 2030 IRP target is expected to be from renewable energy sources, with MW to be operational by 2019 and a further MW (i.e. combined MW) operational by In May 2011, the Department of Energy (DoE) gazetted the Electricity Regulations on New Generation Capacity ( the Regulations ) under the National Energy Regulator Act, 2004 (Act No. 40 of 2004) ( the ERA ). The ERA and Regulations enable the Minister of Energy to make Determinations in consultation with NERSA. In the Regulations, Eskom is designated as the Buyer of power from IPPs. In November 2011 South Africa launched the Green Economy Accord at the COP17 talks in Durban 1. The Accord was aimed at creating new jobs by 2020, in economic activities as diverse as energy generation and manufacturing. The other 1 Accessed online 20 July

4 objective was to ensure that there are farming activities to provide feedstock for biofuels, soil and environmental management and eco-tourism. In 2012, Government also developed the National Development Plan (NDP) 2030 which also supports the development of RE as planned in the IRP of the country. As one of its goals, the NDP identifies the need for South Africa to invest in economic infrastructure that is aimed at supporting South Africa s medium- and longterm economic and social objectives. At the heart of economic development, energy plays an important role in ensuring that the economic growth plans set out by the country are realised. 2. Implementation of Renewable Energy 2.1. Ministerial Determinations The implementation of the promulgated IRP was carried out using Ministerial Determinations, which are regulated by the Regulations. To date, the Minister of Energy has made four Determinations for RE, including the 2015 Solar Park Determination, and these are listed in Table 1. The total capacity of signed projects so far is 3 907MW. Table 1: Ministerial Determinations of renewable energy and their capacities Determination Capacities 2011 Renewable IPP Renewable IPP Renewable IPP Solar Park Total Capacity Determined Total Capacity Signed However, on 01 September 2017, the Minister issued a Media Statement 2 regarding the delayed signing of the Power Purchase Agreements (PPAs) between Independent Power Producers (IPPs) of Bid Window (BW) 3.5, BW4 and Eskom. The Minister of 2 IPP Media Statement: Accessed online, 14 September

5 Energy mentioned that, after a meeting with the Minister of Public Enterprise, representatives from the DoE, the Department of Public Enterprise (DPE), National Treasury, Eskom and the IPP Office, a conclusion was reached that the procurement programme of RE under the DoE will be placed on hold until a proper review is done and to allow the Integrated Energy Plan (IEP) and IRP to be concluded in order to give an indication of the capacity needed by the country. In the short term, the moratorium imposed by the Minister may have an impact on the rate of introducing additional annual capacity of RE as outlined in the promulgated IRP , but it will not affect the operating RE IPPs Procurement of Renewable Energy From 2011, the Department procured 6 428MW of RE in BWs 1 to 4, including a dedicated Concentrated Solar Power (CSP) BW, and two separate BWs intended for small-scale projects. Table 2 shows the total number of projects selected in all completed BWs. In total, 112 IPPs have been selected from the six BWs. Table 2: Selected 112 REIPPP projects through all completed BWs. Number of projects selected Technology BW 1 BW2 BW3 BW 3.5 BW 4 Small Projects Total number per technology Onshore wind n/a Solar PV CSP n/a n/a 7 Small hydro n/a 2 n/a n/a 1 3 Landfill gas n/a n/a 1 n/a 1 Biomass n/a n/a 1 n/a Biogas n/a n/a n/a n/a n/a Total number per BW These 112 IPPs are located across all nine provinces with Northern, Eastern and Western Cape sharing the majority of the projects. Table A1 in Appendix A shows the distribution map of RE projects across the country. 5

6 Table 3 shows the capacity allocation of different RE technologies per BW. The BW1 tender submission date was on 04 November 2011 and 28 Preferred Bidders with contracted capacity of MW were selected. The selected bidders signed agreements on 05 November BW2 IPP projects submission date was on 05 March 2012 and 19 Preferred Bidders were selected with contracted capacity of 1 040MW. The signing of the agreements took place on 09 May BW3 potential IPPs submitted their bids on 29 August 2013 and 17 Preferred Bidders with contracted capacity 1 457MW were selected. Signature of the agreements for 15 of these projects took place on 11 December Table 3: Capacity Allocation per Bid Window Technology BW 1 BW2 BW3 BW 3.5 BW 4 Small Projects Total RE Onshore wind Solar PV CSP Small hydro Landfill gas Biomass Biogas Total A separate Bid Window, BW3.5, dedicated for Concentrated Solar Power (CSP) projects, was announced and its Bid Submission Date was on 31 March Two Preferred Bidders with a contracted capacity of 200MW were selected. The Fourth Bid Window (BW4) Submission Date was on 18 August From BW4, 13 Preferred Bidders were selected, and were announced on 16 April The contracted capacity of BW4 was 1 121MW. An additional 13 Preferred Bidders for BW4 were announced on 07 June 2015 to provide a further 1 084MW of contracted capacity. In total, 2 205MW of contracted capacity has been procured for BW4. The projects of BW4 were expected to sign their agreements by the end of first quarter 2016, but Eskom indicated that it would be difficult to sign some of the projects due to high prices and excess capacity on the grid. In addition to the above BWs for large-scale RE IPPs, twenty small-scale IPP projects (with capacity between 1MW and 5MW) were selected through the bidding process. 6

7 Their total contracted capacity is 100MW. NERSA licensed the first ten projects on 26 April 2016, while the licence applications of the remaining projects are currently under evaluation. The public hearing for the remaining small-scale projects was held on 03 August Progress of Renewable Energy Independent Power Producer Programme (REIPPP) projects In this report, the capacity of commercial operating projects is reported until 15 August 2017, while energy production is reported until 30 June Renewable energy gridcapacity has increased substantially in the past two years, owing to the implementation of the Renewable Energy Independent Power Producer Programme (REIPPP) of the DoE. In 2016, approximately 888MW of RE IPP projects reached commercial operation. So far this year, about 362MW of capacity reached commercial operation. This capacity is from BW3 RE IPP projects. Section 4 of this report will briefly describe the two of recently connected RE IPP power plants. Figure 1 shows the cumulative capacity on the grid as of 15 August The capacity achieved by projects in commercial operation is 3 271MW. The detailed information regarding commercial capacities and operation dates of individual projects is listed in Table B1 of Appendix B. 7

8 Figure 1: Annual capacity of renewable energy IPP projects [Data Sourced from IPPs, August 2017] Table 4 lists capacities of RE IPP projects in commercial operation per province. Also shown in the table (in brackets) are the number of projects in commercial operation for each technology type. Table C1 in Appendix C provides further information on contracted capacities of each province. Table 4 Status of RE IPP project capacity in operation per province as of 15 August Provinces CSP (4) Hydro (2) Landfill (1) Solar PV (33) Wind (18) Total per province EC FS GP LP NC NW WC Grand Total Note: (#) = Number of Projects Figure 2 shows the contract status of projects from each RE IPP Bid Window as of 15 July All projects from BWs 1 and 2 were signed and have reached 8

9 commercial operation, while BW3 has 16 projects signed and one project not signed (i.e. not reached financial conclusion). Figure 2: Status and number of REI PP contracts as of 15 August 2017 [Data Sourced from Eskom, August 2017] 4. New utility scale RE Power Plants from the REIPPP Two new power plants that were commissioned in April 2017, namely the Red Cap Gibson Bay Wind Farm, located in Humansdorp (Eastern Cape), and the Goudkoppies landfill gas project within the Johannesburg Municipality. Figure 3 shows a picture of Gibson Bay Wind Farm. Gibson Bay Wind Farm consists of 37 Nordex turbines with a capacity 3.0MW. The total installed capacity will be 111MW and the expected annual energy production is 424GWh. The site where the wind farm has been built covers an area of about hectares. The total investment of the project is approximately ZAR2.25 billion. The project company structure consists of 60% Enel and 40% Gibson Bay community trust. 9

10 Figure 3: Arial view of Gibson Bay Wind Farm in the Eastern Cape. Courtesy Enel. The Goudkoppies Landfill is one of five landfill gas sites around City of Johannesburg Municipality that received preferred bidder status from BW3 of the REIPPP. The five landfill site projects are owned by Ener-G Systems and when fully operational will have a combined contracted capacity of 18MW. This project site is expected to contributing nearly 3MW of capacity of the 18MW. 5. Energy Production 5.1. Monthly energy contribution REIPPP power plants produced more energy in the first half of 2017 compared to the first half of This is mainly due to additional power plants that reached commercial operation before end of June Figure 4 below shows the monthly energy production of renewable power plants in the first six months of In this period RE IPP power plants generated approximately 3 761GWh, excluding Eskom s Sere Wind Farm. Wind and Solar PV technologies contributed more energy due to their high installed capacity compared to other RE technologies. The breakdown of energy produced by RE IPP power plants for each province is shown in Figure 5. The Northern Cape, followed by Eastern and Western Cape provinces, produced more energy than other provinces. 10

11 Figure 4: Monthly Energy Production of RE IPPs in the first half of 2017 [Data sourced from IPPs, June 2017] Figure 5: Sent-out Energy of RE IPPs per province from January to June 2017 [Data sourced from IPPs, July 2017] Figure 6 shows the trend of RE IPP monthly energy for 2017 and past two years. It is evident that RE has grown over the years and it is attributed to additional capacity from new RE IPP projects. 11

12 Figure 6: Comparison of Monthly Energy production in 2017 with the past two years. The data includes Eskom s Sere Wind Farm [Data sourced from Eskom, July 2017] Figures 7 and 8 show the individual Capacity Factors (CFs) of Solar PV and Wind RE IPP projects in the first half of Solar PV average CF was 23% and wind technology achieved an average CF of 31%. So far this year both technologies have achieved annual average CFs that are similar to those for the first half of 2017, when wind and solar PV power plants achieved average CFs of 31% and 24%, respectively. CSP technology s average CF was 25%, clearly indicating that thermal storage systems of the power plants were not used to their full potential. Hydro power plants achieved an average CF of 63% over the six-month period. 12

13 Figure 7: Capacity factors of solar PV technology power plants [Data sourced from IPPs, July 2017] Average Wind CF = 31% Figure 8: Capacity factors of wind technology power plants [Data sourced from IPPs, July 2017] Figure 9 shows the average daily contribution of REIPPP power plants to the total power system. The data shown for the Eskom fleet (brown plot) includes the Cahora- Bassa import hydro power plant. During the first half of 2017, the average daily contribution of RE to the power system was about 3.6%. By the end of the year, it is expected that the RE IPPs will contribute approximately 7% to the total capacity of the power system. 13

14 Figure 9: Daily contribution of RE on the power grid from 01 January to 31 May 2017 [Data sourced from Eskom and IPPs, July 2017] 5.2. Hourly energy profiles Figure 10 overleaf shows the normalised hourly profile of RE power plants 3 for three seasons in It can be seen from figure that solar PV technology produced more than 70% of its maximum capacity around noon for the three seasons shown. It is also evident from the figure that in summer and autumn months, CSP power plants fed less power to the grid around noon than in winter months. 3 Hourly MW produced are normalised by rated capacity of the power plant. 14

15 Summer Autumn Winter Figure 10: Normalised Average Daily energy profiles of CSP, Wind and Solar PV over three seasons in Renewable Energy Power Costs of REIPPP In this section, individual prices/tariffs of RE IPP project in commercial operation were used to calculate the average price of different technologies based on the energy collected from RE IPPs. It is important to note that the early operation energy and curtailment energy is not included in this analysis. Table 5 shows the average prices of operational projects per BW, based on energy data received from RE IPPs. The total energy produced by RE IPP projects in the first half of 2017 was 3 761GWh, at a cost of approximately R7.6 billion. This resulted in an energy-weighted average price of R2.02/kWh. The average prices of BWs 1, 2 and 3 are R2.59/kWh, R1.85/kWh and R1.08/kWh, respectively. It is evident from Table 4 that the average prices of BW2 and BW3 are cheaper than BW1. This reduction in prices of subsequent BWs is expected to decrease the overall average price of RE going forward. The Landfill gas technology average price has not been included in this analysis since there is currently one project in commercial operation. 4 Renewable Energy Data and Information Service of DoE (REDIS) website: last accessed 20 August

16 Table 5: Average prices of RE IPP projects per BW in the first half of 2017 [Data sourced from IPPs and Eskom, July 2017] Average Price (R/kWh) PV Wind CSP Hydro Average Price per BW BW n/a BW BW n/a n/a Energy Production (MWh) PV Wind CSP Hydro Total Energy per BW BW n/a BW BW n/a n/a Grand Total Cost (R Millions) PV Wind CSP Hydro Total Cost per BW BW n/a BW BW n/a n/a 774 Grand Total Job creation and economic development under REIPPP The RE IPPs under the procurement programme of the DoE submit human resource information through NERSA s Generation Forms (G-Forms) four to six months after their financial year end. Data collected from IPPs in FY2015/16 and in 2017 was used in this analysis. The responses received were from BW1 and BW2 RE IPP projects. Tables 6 and 7 list reported jobs created during commercial operation and the amount spent on Socio-Economic Development (SED) by the power plants of BWs 1 and 2, respectively. The data represents power plants that were able to submit information to NERSA. In BW1, 20 projects out of a total of 28 projects submitted information on job creation. For BW2, NERSA received responses from 14 out of 17 projects. 16

17 Table 6: Bid window 1 Job creation under REIPPP [Data sourced from IPPs, August 2017] Technology MW Projected jobs (operation) Actual jobs (operation) Economic development (amount spent) (R mil) Wind Solar Photovoltaic Concentrated Solar Not provided Thermal Power Total Table 7: Bid window 2 Job creation under REIPPP [Data sourced from IPPs, August 2017] Technology MW Projected jobs (operation) Actual jobs (operation) Economic development (amount spent) (R' mil) Wind Solar Photovoltaic Concentrated Solar Not provided Thermal Power Total The total number of reported jobs during commercial operation for BW1 and BW2 are 719 and 173, respectively. In other words, the jobs reported by the 35 IPPs from BW1 and BW2 is 892. This amount excludes jobs created by operations and maintenance companies contracted by RE IPPs. It has been observed that during operation, other companies are contracted by IPPs to undertake operation and maintenance of more than one power plant, and this results in fewer actual jobs for the total number of power plants. The projected target of jobs during operation for the 35 IPPs was 961 jobs. This implies that these IPPs fell short by 69 jobs. Further analysis is required in order to establish the impact of REIPPP in job creation. The IPPs who could not submit the information on socio-economic development obligations are expected to submit it before end of February Ten projects from BW1 submitted information about the amount spent on SED. The reported total amount spent on SED for BW1 was R97.25 million. For BW2, the reported total SED amount spent was R23.20 million, coming from five projects that submitted information. So far, the total SED amount spent by 19 IPPs projects that submitted information to NERSA from BW1 and BW2 was approximately R120.5 million. 17

18 8. Renewable Energy Power Plants not under IPP Procurement Programme of the Department of Energy Table 8 shows the list of 24 renewable energy power plants not in the REIPPP of the DoE. The total licensed capacity of these power plants is nearly MW. Of this capacity, MW is in commercial operation. Table 8: Renewable Energy Power Plants outside REIPPP of the Department of Energy [Data sourced from Licensees, March 2017] Renewable Energy Power Plant Capacity Technology /Resource type Independent Power Producers Location Status Merino 4 Hydro Bethlehem, Free State Operational Sol Plaatjie 3 Hydro Bethlehem, Free State Operational Darlipp (Pty) Ltd 5.2 Wind Windhoek Farm, Darling, Operational Western Cape Shepa Trade 2.5 Biomass Mpumalanga Under construction Electrawinds 1.8 Wind Nelson Mandela Bay Operational Municipality Mpact Piet Retief 16 Baggase Piet Retief, Mpumalanga Operational Friedenheim Hydro 2.5 Hydro Nelspruit, Mpumalanga Operational Electric Power Station Bronkhorstspruit Biogas Plant 4.2 Biogas Bronkhorstspruit, Gauteng Under construction AC Witcher 5.67 Biomass Eastern Cape Operational Illovo 6.5 Bagase KZN Operational CPV Powerplant No Solar CPV KZN Operational (Pty) Ltd L'omarins 2.4 Hydro Western Cape Operational Green Grid Energy (Pty) Ltd Port Elizabeth Solar PV1 (Pty) Ltd 3.6 Biomass KZN Under construction Solar PV Estern Cape Under construction Municipal Power Plants Lydenburg 2 Hydro Lydenburg Dorpsgrond Operational Piet Retief Hydro 0.6 Hydro Mkhondo Municipality Operational Clanwilliam Dam Hydro 1.5 Hydro ClanWilliam, Western Operational Power Station Cape Eskom Power Plants Gariep Dam 360 Hydro Norvalsport/Between Free State & Northern Cape Operational Vanderkloof Dam 240 Hydro Petrusville/Between Free Operational State & Northern Cape Transkei hydro 42 Hydro Mbashe River/ Eastern Operational Colleywobbles Cape Transkei Hydro First Falls 6 Hydro Umtata River/ Eastern Operational Cape Transkei Hydro Second 11 Hydro Umtata River/ Eastern Operational Falls Cape Ncora Dam 2.1 Hydro Umtata River/ Eastern Operational Cape Sere Wind Farm Wind Western Cape Operational Total Capacity

19 This means that the total capacity of all licensed RE power plants in commercial operation, including MW of REIPPP projects, is MW. The power plants that reported energy production in the period 01 January 2017 to 30 June 2017 are listed in Table 9 below. Their total installed capacity is approximately 134.8MW. Table 9: Reported RE Power Plants not in REIPPP of the Department of Energy [Data sourced from Licensees, March 2017] Renewable Energy Power Plant Capacity Clanwilliam Dam Hydro Power Station 1.5 Darlipp (Pty) Ltd 5.2 Electrawinds 1.8 Friedenheim 2.5 Lydenburg Hydro 2 Mpact Piet Retief 16 Sere Wind Farm TOTAL CAPACITY Figure 11 below show the energy production of power plants listed in Table 6 above. Their total energy production from 01 January to 30 June 2017 was nearly MWh. The increase in energy production for May and June 2017 is due to data that NERSA began receiving from Eskom s Sere Wind Farm. Figure 11: Reported Energy of Power Plants outside REIPPP of DoE from 01 January to June2017 [Data sourced from IPPs and Eskom] 19

20 9. Concluding Remarks A total of 58 RE IPP power plants from BWs 1, 2 and 3 are in commercial operation. As of 15 August 2017, the total capacity from the REIPPP in commercial operation is MW. Based on submitted energy production data by IPPs in the first six months of 2017, RE power plants produced nearly 3 761GWh. In the first six months of 2017, the average monthly capacity factor for wind power plants was 31%, while the average capacity factor of solar PV was 23%. In the first half of 2017, the average cost of the energy produced by RE IPP projects under the REIPPP was approximately R7.6 billion, resulting in an average price of R2.02/kWh. The reported total number of jobs during operation from 35 IPPs of BW1 and BW2 of the REIPPP is 892. A further investigation and analysis is required in order to establish the benefits of the projects in terms of job creation and socio-economic development. The total ED amount spent by 19 IPP projects that submitted information to NERSA from BW1 and BW2 was approximately R120.5 million. The other licensed RE power plants not in the REIPPP of the DoE have a total capacity of nearly 835MW. In the first half of 2017, the energy production reported from seven of these power plants was approximately 61GWh. 20

21 APPENDIX A: Distribution of All Renewable Energy Projects in South Africa Figure A2: Renewable Projects across South Africa. Map includes non-re IPPP projects [Sourced form REDIS, July 2017] Wind CSP Solar PV Hydro Biomass Landfill 21

22 APPENDIX B: List of all RE IPP in Commercial Operation under the Procurement Programme of the Department of Energy Table A1: REIPP projects in commercial operation [Data sourced from IPPs] Power Plant Province Technology Contracted Capacity Achieved Capacity Achieved COD 155 RustMo1 NW Solar PV Nov Hopefield WC Wind Feb MetroWind EC Wind Feb Kalkbult Solar PV NC Solar PV Mar Aries Solar PV NC Solar PV Mar Konkoonsies Solar PV NC Solar PV Mar PV De Aar (SAMR) NC Solar PV Apr Droogfontein (SAMR) NC Solar PV Apr Herbert Solar PV NC Solar PV Apr Greefspan Solar PV NC Solar PV Apr Dassieklip WC Wind May Jeffreys Bay (SAMR) EC Wind May Letsatsi FS Solar PV May Lesedi FS Solar PV May Linde * NC Solar PV Jun Soutpan LP Solar PV Jul Nobelsfontein NC Wind Jul Mulilo de Aar NC Solar PV Jul Vredendal* WC Solar PV Jul Upington Solar * NC Solar PV Jul Dorper EC Wind Aug Solar Capital de Aar NC Solar PV Aug Reisa Kathu NC Solar PV Aug Witkop LP Solar PV Sep Mulilo Prieska NC Solar PV Oct Boshoff * WC Solar PV Oct Cookhouse EC Wind Nov Sishen * NC Solar PV Nov Touwsrivier (CPV No.1) WC Solar PV Dec Jasper * NC Solar PV Dec Aurora Rietvlei * WC Solar PV Dec Dreunberg * EC Solar PV Dec Kakamas Hydro* NC Hydro Jan Kaxu Solar One NC CSP Feb Kouga Red Cap EC Wind Mar Grassridge * EC Wind Jun West Coast (Aurora)* WC Wind Jun SlimSun* WC Solar PV Aug Gouda* WC Wind Aug Chaba* EC Wind Sep Waainek* EC Wind Jan Khi Solar One NC CSP Feb Bokpoort CSP* NC CSP Mar Solar Capital De Aar 3* NC Solar PV Apr _004 Noupoort Wind Farm** NC Wind Jun _002 Mulilo Sonidix Prieska PV** NC Solar PV Jul Amakhala* EC Wind Jul Stortemelk* NC Hydro Jul _003 Mulilo Prieska PV 4** NC Solar PV Aug Tsitsikamma* EC Wind Aug _001 Tom Burke Solar Park** LP Solar PV Aug _001 Paleisheuwel** WC Solar PV Oct _002 Nojoli** EC Wind Oct _001 Robinsons Deep; Goudkoppies ** GP Landfill Nov-16; 25- Apr- 17 Adams Solar PV** NC Solar PV Jan-17 Pulida** FS Solar PV Jan-17 Red Cap Gibson Bay** EC Wind Apr-17 Xina Solar One *# NC CSP Aug-17 TOTAL COMMERCIAL CAPACITY

23 APPENDIX C: Provincial Allocation RE IPP Projects PROVINCE RE IPP PROJECTS TOTAL CAPACITY One REIPP power 18MW contracted plant; Landfill Gas power plant capacity Annual Expected Energy of MWh (P50) 5MW in commercial operation Gauteng Province Nine REIPP power 228.1MW contracted plants; Two Hydro power plants Wind power plants; Seven Solar PV capacity Annual Expected Energy of MWh (P50) 203.4MW in commercial operation power plants; Free State Province Three REIPP Power Plants Three Solar PV power plants 122 MW of contracted capacity Annual Expected MWh of MW (P50) 122MW in commercial operation Limpopo 23

24 PROVINCE RE IPP PROJECTS TOTAL CAPACITY One REIPP Power 16.5MW of Plant contracted One Biomass power capacity plant. Annual expected energy of MWh (P50) 0MW in commercial operation KwaZulu Natal Total of 17 REIPP 1 509MW Power Plants; contracted 16 Wind power capacity plants; Expected energy 1 Solar PV power MWh plants. (P50) 1 071MW in commercial Eastern cape operation Total of 59 REIPP power plants; 12 Wind power plants; 39 Solar PV power plants. Seven CSP power plants One small-hydro 3 621MW of contracted capacity Expected energy MWh (P50) 1 354MW in commercial operation power plant Northern Cape 24

25 PROVINCE RE IPP PROJECTS TOTAL CAPACITY Two REIPP power 30MW of plants; contracted Two Biomass power capacity plants Expected energy MWh (P50) 0MW in commercial operation Mpumalanga Six REIPP power plants; Six solar PV power MW of contracted capacity plants Expected energy MWh (P50) 6.93MW in North West commercial operation 25

26 PROVINCE RE IPP PROJECTS TOTAL CAPACITY 14 REIPP power 606.2MW of plants; contracted Eight Wind plants capacity Five solar PV power Expected energy plants MWh One Biomass power (P50) plant 509MW in commercial operation Western Cape 26

27 Glossary of Terms and Abbreviations GLOSSARY BID WINDOW Means any of the procurement phases under the Renewable Energy Independent Power Producer Procurement Programme of the Department of Energy. CAPACITY FACTOR Means the ratio of the power plant output over a period of time, to its potential output if it were possible for it to operate at full nameplate capacity continuously over the same period of time. SOCIO-ECONOMIC DEVELOPMENT Means development contributions that aimed towards a wide range of activities including rural development, the environment, infrastructure, enterprises, reconstruction of undeveloped areas, development programmes for women or youth, education, health care as well as arts and culture and sports. ENERGY REGULATOR Means the regulatory authority established as a juristic person in terms of Section 3 of the National Energy Regulator Act, 2004 (Act No. 40 of 2004). GOVERNMENT Means the Government of the Republic of South Africa, and any of its departments, agencies or other entities that it manages or controls. GIGAWATT HOUR Energy unit in which electricity consumption is measured. 1GWh = 1000MWh. 27

28 INDEPENDENT POWER PRODUCER (IPP) IPPs are defined as typically limited-liability, investor-owned enterprises that generate electricity either for bulk sale to an electric utility or for retail sale to industrial or other customers with certain conditions. MEGAWATT HOUR Energy unit in which electricity consumption is measured. 1MWh = 1000kWh. MINISTER Means Minister of Energy RENEWABLE ENERGY (from the 2003 White Paper on Renewable Energy) Renewable energy harnesses naturally occurring non-depletable sources of energy, such as solar, wind, biomass, hydro, tidal, wave, ocean current and geothermal, to produce electricity, gaseous and liquid fuels, heat or a combination of these energy types. 28

29 ABBREVIATIONS BW CF COD CSP DoE Bid Window Capacity Factor Commercial Operation Date Concentrated Solar Power Department of Energy IPP `. Independent Power Producer IRP MW MWh NERSA PV RE REIPPP SED TWh Integrated Resource Plan Megawatt Megawatt hour National Energy Regulator Photovoltaic Renewable Energy Renewable Energy Independent Power Producer Programme Socio-Economic Development Gigawatt hour 29