Construction World October 2018

ALTERNATIVE ENERGY

CONSTRUCTION and operating PV plant

juwi Renewable Energies has concluded three Engineering, Procurement and Construction (EPC) and Operation & Maintenance (O&M) contracts, with a combined value of R3-billion, with African Infrastructure Investment Managers (AIIM), Africa’s largest and most experienced infrastructure-focused private equity fund manager and a member of Old Mutual Alternative Investments. This will deliver 250 MW of additional solar PV electricity to South Africa’s power grid

About the juwi juwi, one of the leading global companies in the field of renewable energy, celebrates its 22 nd anniversary in 2018. As an experienced renewable energy pioneer with a strong regional presence, juwi offers project development and EPC services with related offerings for the transition to greater utilisa- tion of sustainable energy globally. Company activities focus on solar photovoltaic (PV) and wind projects, and ongoing renewable energy power plant operations & maintenance activities. The juwi Group was established in 1996 in Rhineland-Palatinate, Germany. Since the end of 2014, Mannheim-based utility, MVV Energie AG, has been partner and majority shareholder (63%) of the juwi Group. juwi has about 1 000 employees located in offices on all continents and has a growing pipeline of project activities across the globe. Working together with passion to implement renewable energy economically and reliably is what drives us. So far, juwi has realised more than 950 wind turbines with a total capacity of more than, 2 100 megawatts at more than 150 sites globally. In the solar segment, more than 1 600 projects with a total capacity of around 2 300 megawatts have been designed and constructed. Combined, these energy systems produce around 7,7 billion kilowatt hours of clean energy per year, equaling the annual demand of more than 2,5 million German households. Within the past 20 years, juwi has initiated an investment volume of around 8,6 billion euros to realize these projects. juwi Renewable Energies based in Cape Town, South Africa participates in the Renewable Energy IPP (REIPP) Procurement Programme initiated by the South African government for utility-scale renewable energy power generation. To date juwi South Africa has built five solar plants totalling 121 MW under the REIPP Procurement Programme. juwi South Africa also develops and bids wind projects under the Programme, and is also active in the gov- ernment’s Small IPP Programme. In addition to this, juwi South Africa has realises large solar PV projects that deliver cost competi- tive electricity to a range of commercial and industrial end-users.

over the coming few years. U nder the deals signed, AIIM’s IDEAS Managed Fund is a 50,01% shareholder in the three projects which were signed by juwi, under Round 4 of the REIPPPP Programme. The IDEAS Managed Fund is one of South Africa’s largest domestic infra- structure equity funds with ZAR13,2-million under management. Debt funding has been provided by Absa and Nedbank. The agreements follow in the wake of Energy Minister Jeff Radebe’s R56-billion announcement in April 2018, contracting 27 independent renewable energy power produc- ers to add 2 300 MW of renewable electricity to the national grid over the next five years. The three projects are the 86 MW Water- loo Solar Park situated near Vryburg in the North West Province, the 78 MW Bokamoso Solar Park situated near Leeudoringstad in the North West Province, and the 86 MW Droogfontein 2 Solar Park situated near Kimberley in the Northern Cape. “We are delighted to have closed the EPC and O&M contracts and the associated agreements with AIIM, together with their equity and debt partners. For juwi, this represents a major milestone as the addition of this 250 MW triples our existing portfolio of solar PV projects constructed and operated in South Africa,” commented juwi MD, Greg Austin. juwi will operate and maintain the solar plants for an initial contract period of five years from commercial operation. Some of the key social and economic benefits of the new solar facility invest- ments include 100% SA ownership, 50% direct black ownership, greater than 65% black ownership including indirect black ownership, and 40% black participation in engineering, procurement and construc- tion (EPC) contracts, and the transition to majority black-owned operations and maintenance contractors. Additionally, the

three projects are expected to create over 1 600 jobs during construction and 4 000 jobs during the operations and mainte- nance phases. “The RE sector brings real socio-eco- nomic benefits to South Africa, offering significant job creation, and infrastructural development to facilitate economic growth and attract investment to the region,” said Austin, adding that the job benefits are enjoyed in diverse and more remote areas of the country as a result of the decentralised nature of renewable energy projects. “As part of the deal package, juwi has committed to structuring its construction and operations companies to align with the IPP Office’s black shareholder requests arising post-projects preferred bidder status,” said Austin. Richard Gordon CEO of ACED agrees that the future looks bright for renewables: “The finalisation of these contracts indicates that the government sees a future in renewable energy in South Africa and it’s given the investor community confidence in an area that has been lacking in the past two years. It bodes well for future rounds - Investors this as programme as being a solid long- term stable returns and it’s a secure place for banks to lend money into.” Financial close on all three REIPPPP projects was achieved during the course of July 2018, enabling the projects to now move into the construction phase. Con- struction will commence at Droogfontein 2 in Q3 2018, at Bokamoso in Q4 2018 and at Waterloo in Q1 2019. 

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SUSTAINABLE CONSTRUCTION WORLD OCTOBER 2018