Background Information Document and Invitation to Comment

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Background Information Document and Invitation to Comment Environmental Impact Assessment for the Proposed Drennan Photovoltaic (PV) Solar Power Plant, Cradock, Eastern Cape Province Scoping/EIA DEA Ref Number: 14/12/16/3/3/2/359 ERM Ref Number: 0166587 PURPOSE OF THIS DOCUMENT Solairedirect Southern Africa (Propriety) Limited (hereaer referred to as Solairedirect) is proposing to construct a new Photovoltaic (PV) Solar Power Plant on the Genoegsaam Site, on the remaining extent of Farm Drennan (two preliminary development footprint op$ons have been proposed, on Por$on 39 of Farm 523 and Por$on 0 of Farm 600 ( ini$al PV footprint ), as well as on Por$ons 15 and 16 of Por$on 1 of the Farm Waai Plaats (no. 550) and Por$on 39 of Farm 523 ( current PV footprint ), Cradock) Inxuba Yethemba Local Municipality, Eastern Cape (see a7ached map Figure 5). The aim of this Background Informa$on Document is to provide stakeholders with informa$on about the proposed Drennan Solar Park project as well as the associated Environmental Impact Assessment (EIA). This document outlines the required EIA Processes, associated Public Par$cipa$on Process and provides stakeholders with ini$al project informa$on. You are encouraged to register as an Interested and Affected Party (I&AP) so that you can be kept informed about the project throughout the EIA process. Before construc$on on the Drennan Solar Park can begin, a full Scoping/Environmental Impact Assessment (EIA) must be undertaken in terms of the Na$onal Environmental Management Act, 1998 (Act No. 107 of 1998), as amended (NEMA) to obtain the necessary environmental authorisa$ons. Figure 1: Typical Photovoltaic Solar Park Further documents will be available at various stages during the EIA process to provide stakeholders with more detailed informa$on about the project and there will be further opportuni$es to ask ques$ons, raise issues of concern and give sugges- $ons for enhanced benefits. Stakeholders will also be given the opportunity to verify that their issues have been considered and to comment on various study findings. Thereaer, the findings, along with your comments will be submi7ed to the relevant authority, namely the Na$onal Department of Environmental Affairs (DEA) for considera$on. ERM s Role Environmental Resources Management Southern Africa (Pty) Ltd (ERM) has been appointed by Solaire Direct to undertake the Environmental Impact Assessment (EIA) and associated Public Par$cipa$on Process. You are invited to register as an I & AP and to comment on this project. Please complete the enclosed registra$on/ comment sheet and/or contact: Tougheeda Aspeling Tel: 021 702 9100 Fax: 021 701 7900 Email: Drennan.solar@erm.com Postal address: Postnet Suite 90, Private Bag X12, Tokai, 7966. Page 1

Project Description The proposed total development includes the installa$on and opera$on of solar panels with a projected output of up to 90 MW at the Drennan Site, see map a7ached. The proposed current PV footprint (refer to Figure 5), will have photovoltaic (PV) solar panel arrays that will occupy up to a maximum of 110 ha (1.1 km 2 ). The PV arrays are mounted on aluminium frames that are then a7ached to screwfoot founda$ons or concrete founda$ons, depending on soil condi- $ons. The PV arrays will face north in order to capture the maximum sunlight. Figure 2 shows a typical PV panel. The final design and detailed layout of the development will be based on a number of environmental, social and technical factors that will be explored in the EIA phase. Figure 2: Typical Photovoltaic Panel Construcon: Prior to construc$on of the solar park the site would be prepared as necessary, this will include removing tall vegeta$on, crea$ng access roads and preparing the founda$ons. Once the PV components have arrived on site, technicians would complete the assembly and test the facility. Construc$on of the facili$es will be undertaken in phases over a period of 1 2 years. Operaon: It is an$cipated that, once opera$onal, the facility will generate up to 90 MW of electricity which will be fed into the na$onal power grid. The key components of the proposed solar power plant include the following: PV Arrays - A number of PV arrays, as described above, will be arranged in rows that will cover the selected site and will be connected to one another by underground cables. Electrical Connecons - An inverter will connect to each row of PV panels to convert the direct current (DC) output to alterna$ng current (AC). The inverters will be connected to a number of step-up transformers, which will convert the low voltage AC to a medium voltage suitable for distribu$on via a substa$on. Substaon and Grid Connecon - There is an exis$ng Eskom substa$on on the site (Figure 3) that would be used to connect the Drennan Solar Park to the na$onal grid network. Figure 3: Drennan Traction Substation Addional Support Infrastructure - Addi$onal infrastructure on the site will include access roads for construc$on and maintenance vehicles; a permanent solar irradia$on measuring panel to collect data on the solar resource at the site; a small office and storage building with security and ablu$on facili$es; and fencing around the site. Once the facility is complete and opera$onal regular maintenance would be required to keep the PV cells in op$mal working order. Who is Solairedirect Solairedirect is a solar photovoltaic (PV) developer, contractor and operator founded in 2006 and based in Paris & Aix-en-Provence (France). The company s current South African interest is a manufacturing facility in Cape Town (South Africa) that was commissioned in early 2009, and currently has a number of solar photovoltaic projects under development. It is a ver$cally integrated power producer providing a turnkey solar power genera$on service. Solaire Direct completed the construc$on of the first solar photovoltaic park in France, with a peak genera$ng capacity of 4.3 megawa7s-peak (MWp), close to the village of Vinon-sur-Verdon in 2009. Since then the company has fully developed, financed and completed 14 solar parks with a total installed capacity of 120MW. Solairedirect has made significant private investment into the local renewable energy manufacturing industry in the past five years, with more than R50 million invested in not only the photovoltaic module manufacturing facility in Cape Town, but also in project development. Decommissioning: The Solar Park will be decommissioned aer 20-30 years, alterna$vely upgraded or an applica$on submi7ed to obtain a new license. If decommissioned, all components excluding the founda$ons and some roads would be removed and the site Page 2

The Environmental Impact Assessment Process The Environmental Impact Assessment (EIA) for the proposed Solar Park is being conducted in terms of the Na$onal Environmental Management Act, 1998, (Act No. 107 of 1998), as amended (NEMA). Several ac$vi$es associated with the project have been iden$fied as listed ac$vi$es in terms of the EIA Regula$ons GN.R544, GN.R545 and GN R546. The proposed EIA Process is outlined below. Scoping Phase A full Scoping/EIA Process will be undertaken for a Solar Park on the Drennan Site, with an output of up to 90MW. The purpose of the scoping phase is to determine the scope of studies to be conducted in the EIA phase. The scoping report will provide a descrip$on of the environmental and social characteris$cs of the site and surrounds, poten$al alterna$ves and a detailed plan of study for the EIA phase. The Dra Scoping Report will be made available for your comment. EIA Phase In the Environmental Impact Report (EIR), the issues iden$fied in the scoping Figure 4: Power lines and PV panels report will be assessed and the significance of the impacts will be rated according to a prescribed methodology. The dra EIR will be made available for your comment. AUTHORITIES EIA PROJECT TEAM I&APs Consultation PROJECT INITIATION Kick-off meeting Site visit Authority consultation EIA Application for Authorisation Public Parcipaon You are invited to be part of the EIA process! As a stakeholder, you are invited to iden$fy issues and concerns about the project pertaining to poten$al posi$ve or nega$ve environmental and social impacts which will be inves$gated during the EIA process. Review SCOPING Initial stakeholder consultation Draft Scoping Report Final Scoping Report SPECIALIST STUDIES Public comment including public meetings/focus groups Publicly available The dra Scoping and EIR reports will be released for comment for 30 days each, during which $me, you will be asked to send your comments or ques$ons to ERM. The project team will provide a response to the ques$ons, and all comments and responses will be included in the final reports that will be submi7ed to the Department of Environmental Affairs for their considera$on. EIA REPORT & EMP Review Draft EIA Report & EMP Public comment including public meetings/ focus groups Final Specialist Studies, EIA Report & EMP Publicly available ENVIRONMENTAL AUTHORISATION Opportunity to appeal Page 3

Registration and Comment Sheet July 2012 Should you have any queries, comments or suggesons regarding the proposed project, please note them below Return this comment sheet to Tougheeda Aspeling of ERM Southern Africa: Tel: 021 702 9100Fax: 021 701 7900 Email: drennan.solar@erm.com Postal address: Postnet Suite 90, Private Bag X12, Tokai, 7966. Please formally register me as an interested and affected party (I&AP) and provide further in- Yes No I would like to receive my notifications by: Email Post Fax Comments: Please register the following people for this EIA: Title and Name: Organisation: Telephone: Cellphone: Postal Address: Fax: Email: Please fillin your contact details below for the project database.

Figure 5: Current PV Footprint Map