Electricity and Control August 2023

ENERGY MANAGEMENT + THE INDUSTRIAL ENVIRONMENT

equipment maintenance, vegetation control, and power system management. A risk management plan is a must for businesses planning to own and operate independent facilities. Scatec offers Operation and Maintenance contracts alongside its renewable energy solutions for the life of the project,” he says. He highlights too that in South Africa, private PPAs are governed by various regulations and policies. The country has taken steps to promote renewable energy development through programmes like the REIPPPP and by lifting thresholds for private sector power generation. He says it’s important for private entities to understand the regulations and policies applicable to their circumstances, and to obtain the necessary licences and approvals before engaging in a PPA. As South Africa’s renewable energy market progressively aligns with those of other countries, it is driven by the demand for dependable power and a commitment to minimising the country’s environmental impact. In Fourie’s view, the growth of renewable energy in South Africa’s energy market signifies a pivotal moment in the nation’s pursuit of a greener, more sustainable future. □

Another private PPA secures 75 MW solar Air Products South Africa (Pty) Ltd (Air Products) has concluded a long-term Power Purchase Agreement with Mulilo Renewable Project Developments (Pty) Ltd (Mulilo). In terms of the agreement, Air Products will purchase up to 75 MW of renewable energy from a dedicated solar farm, which is to be constructed in the Northern Cape. The solar farm will be jointly owned by Air Products and Mulilo. Financial close is anticipated in the fourth quarter of 2023, looking to generation of power supply from mid-2025. The facility will have the capacity to generate about 240 GWh of electricity annually. The electricity will be supplied by wheeling from the solar farm to Air Products’ air separation units in various locations around the country. Air Products Managing Director Rob Richardson noted: “Air separation is an electrically intensive process and electricity is our most important raw material. This agreement is a significant step towards meeting our medium-term goal, which is to reduce fossil-fuel-based energy requirements and CO 2 emissions by one-third by 2030. Once the project is com pleted, it will get us a long way down that path, with more to come.” Mulilo CEO, John Cullum said: “Mulilo is excited to partner with Air Products on this important project. It will be one of the first large-scale wheeling solar projects in South Africa and will consolidate Mulilo’s standing as a leading renewable energy supplier in the country. The “Navigating the business of power generation and the regulatory environment, including environmental, social, and land permitting requirements, is critical for businesses looking to establish energy generation facilities. Working with experienced entities like Scatec offers them smooth navigation of the regulations and action plans,” he says. Fourie explains that PPAs in South Africa must follow the Electricity Regulation Act No.4 of 2006: Electricity Regulations on New Generation Capacity. “Private power generators must register with NERSA, and the IPP-generated power is sold either directly to a customer or through a trader. PPAs are typically long-term contracts, but recent changes in regulations, technology, and industry enable shorter agreements and shared risk, allowing more tailored PPAs for private consumers,” he adds. He highlights market education as crucial in the ongoing transformation, as businesses may have limited knowledge of the energy market and the potential for cost-effective par ticipation. Scatec, as a leading renewable energy provider, offers its well-established expertise to walk the path with businesses, alleviate fears and misconceptions, and share insights for successful clean energy implementation.” Managing operational risks is equally important. “Renewable energy projects face challenges such as

For more information visit: www.scatec.com

ENERGY MANAGEMENT + THE INDUSTRIAL ENVIRONMENT : PRODUCTS + SERVICES

Rob Richardson, Managing Director, Air Products.

John Cullum, CEO, Mulilo.

project is furthermore an important step in contributing to ending loadshedding in South Africa, where the private sector has the ability to play an important role.” Wheeling involves the delivery of energy from a generator to an end-user located in another area through the use of an existing distribution or transmission network. It allows privately generated power to be transmitted across the national grid to customers who want it, in a willing buyer/willing seller model. This facilitates renewables-based energy transmission from sites with good wind and solar resources to corporate, industrial and residential customers in locations that may be less suitable to renewable energy production.

For more information contact Air Products. Visit www.airproducts.co.za. Or Mulilo Visit www.mulilo.com.

AUGUST 2023 Electricity + Control

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