Sparks Electrical News August 2019
ENERGY EFFICIENCY
11
CONSTRUCTION ON BEGINS ON NEW 140 MWWIND FARM
SCHOLARSHIP FUNDING IN THE ENERGY SECTOR
A study undertaken by the Department of Energy’s IPP of- fice shows that 25% of renewable energy funded-scholar- ships fall to the Globeleq Scholarship Fund (GSF), which launched in 2014 to help develop young engineering students for the nascent renewable energy industry and actively support the transformation of the industry. Energy Minister Jeff Radebe recently acknowledged the contri- bution that the Renewable Energy Independent Power Producers (IPPs) have made towards education within remote local com- munities. Over R1 billion has been spent on education by upskill- ing teachers, providing extra teachers and classrooms, as well as awarding an astounding number of scholarships and bursaries to students from disadvantaged communities, with over 50% of these bursaries being taken up by women. “In our capacity as the management services company of Droogfontein Solar Power, De Aar Solar Power and Jeffreys Bay Wind Farm, we developed this programme to help meet the de- mand within the industry for qualified engineers, to not only create a skills pipeline for our organisation, but also to help meet the growing demand for qualified black engineers and thereby sup- porting our country as a whole,” explained Dhesen Moodley, Man- aging Director of Globeleq South Africa Management Services. Since 2016, the GSF recipients have been 100% black youth and over 55% female for the last two years, setting an ambitious target not only for the renewable energy industry but for other sectors who are striving to support the transformation of South Africa. The GSF programme believes that it utilises a less con- ventional and holistic approach to funding, by typically not only focusing on academic achievement, but rather on financial need, location of the students and gender to demonstrate its commit- ment to increase the cache of women engineers in the country and to the sector. “Over the years the GSF has grown and expanded, however, it has consistently provided young people with exposure to the re- newable energy industry, as well as offering opportunities through an internship programme for beneficiaries to gain the necessary work experience. Specifically, the opportunity for national diploma students to complete their required in-service training and there- by fill the technical skills gap within the renewable energy indus- try,” added Moodley.
ENEL , through its renewable subsidiary Enel Green Power RSA (“EGP RSA”), has begun construction of its Oyster Bay wind farm, of around 140 MW, in the Kouga Lo- cal Municipality, in South Africa’s Eastern Cape province. The construction of Oyster Bay, which is Enel’s fourth wind project in the country, will involve an investment of approximately 180 million euros. Antonio Cammisecra, Head of Enel Green Power, said: “With the start of con- struction of the fourth wind project in South Africa’s Eastern Cape province, we are con- tinuing to contribute to the socio-economic development of the area through our zero- emission energy and initiatives to create shared value. These initiatives include the innovative model implemented at the Oys- ter Bay construction site, as well as the sus- tainability activities focused on scientific and technical education in the area around the project. Looking ahead, we will continue to harness South Africa’s abundance of renewable resources, creating a virtuous circle of sustainable energy generation, education and development.” Once fully up and running, due in the second quarter of 2021, the 41-turbine Oyster Bay is expected to generate around 568 GWh per year, avoiding the annual emission of around 590 000 tons of CO 2 into the atmosphere. The wind farm will be supported by a 20-year power sup- ply agreement with the South African energy utility Eskom, as part of the South African government’s Renewable Energy Independent Power Producer Procure- ment Programme (REIPPPP) tender, which awarded in April 2015 a total of five wind projects for 700 MW to the Enel Group in
The GSF includes two streams, namely Engineering and Education, a focus that was added into the pro- gramme in 2017 to specifically build teaching capacity within rural com- munities. The Engineering stream, which aims to meet anticipated re- newable industry technical skill de- mand, enables aspirant engineers from around the country to acquire the qualifications and skills demand- ed by this sector, particularly BTech and ND electrical engineering and mechatronics, an inter-disciplinary field, combining traditional electrical, electronic, mechanical, control and computer engineering skills, as well as the traditional pure electrical en- gineering field.
its fourth round. EGP will use innovative tools and meth- ods to build this wind park, such as ad- vanced digital platforms and software solutions to monitor and remotely sup- port site activities and plant commission- ing, digital tools to perform quality controls on site and smart tracking of wind turbine components as well as an active safety system. These processes and tools will enable swifter, more accurate and reliable data collection, improving the quality of construction and facilitating communica- tion between on-site and off-site teams. In addition, the company has commit- ted to ensure job creation in the commu- nity surrounding Oyster Bay, while also prioritising education, a key driver of so- cio-economic development, by supplying schools with clean energy through mini-PV systems, awarding scholarships in Science, Technology, Engineering, and Mathematics (STEM) subjects to local students and sup- porting school feeding programmes in the Kouga municipality. EGP promotes STEM in the community, also by supporting the employment of three fulltime teachers. Enel Green Power is the Enel Group’s glob- al business line dedicated to the develop- ment and operation of renewables across the world, with a presence in Europe, the Ameri- cas, Asia, Africa and Oceania. Enel Green Power is a global leader in the green energy sector with a managed capacity of more than 43 GW across a generation mix that includes wind, solar, geothermal and hydropower, and is at the forefront of integrating innovative technologies into renewable power plants.
Enquiries: www.globeleq.co.za
Enquiries: +27 (0)10 344 0200
SOLAR: THE SOLUTION FOR BUSINESSES I ncreased demand and technological advances have attributed to the significant decrease in Solar Photovoltaic (PV) systems cost over the years says SAPVIA, the representative voice of the solar PV industry in South Africa.
Installation costs Factors that determine costs of installation for the business include the design of the solar PV system, the value of the technology procured, professional engineering sign off on the system and costs involved in the financing model selected. To have a good business case for solar PV factors such as a high day-time electricity tariff, excellent operations and main- tenance (O+M) plan have to be considered says Chilwan. Financial models One of the significant obstacles businesses face is the hefty cost of installation. Besides self-funding, Chilwan explains that other financial models available to businesses looking to procure a solar PV system are available. These include debt financing from banks and the Power Purchase Agreement (PPA) – an innovative model that the EPCs or developers offer. Banks can provide term loans covering 70-100 percent of the capital costs within a five to ten-year loan term. “With a PPA, the PPA provider owns the system and therefore lays out the capital to install the solar PV system, the client buys the electricity from the PPA provid- er at a tariff rate usually less than the current tariff the business is on. These are long-term agreements of usually 15 years and have “buy-out” clauses within the PPA,” he explains. As solar PV becomes more efcient and technology costs decrease, the business case will also improve, providing businesses more reason to consider investing in solar PV systems.
A Solar PV system can save small to medium businesses up to a third of their electricity costs with a payback period averaging three to eight years from installation. It can also decrease exposure to energy price increases as well as increase the property value for the property owner. The cost of the technology is reducing on an annual basis, and the trend is set to continue, says Seraj Chilwan, Smart Grids Project Man- ager at Green Cape, a SAPVIA member and leading non-profit organi- sation focused on the development of the green economy. “What is positive to see is that we also have local businesses that have the qualifications, competencies and experience to engineer, pro- cure and install these solar PV systems,” he says. “I think a real game changer will be when battery energy storage becomes more cost-ef- fective for businesses to invest in; so that is a technology to look out for.” However, it is important to note that some South African provinc- es, for instance, the Northern Cape are better suited for solar PV than coastline provinces such as KwaZulu-Natal. Chilwan explains that this is due to the fact that the solar irradiation levels in places like the North- ern Cape are higher, which means the solar PV systems will produce more electricity than systems with lower irradiation levels. “However, we have seen that businesses in provinces, like the Western Cape, have also benefited greatly from solar PV when the system is sized correctly,” he explains. The first step Getting a solar PV Engineering, Procurement & Construction (EPC) company to do due diligence on the facility is the first step in making sure that a business facility is the right candidate for solar power. “It will be able to ascertain the solar PV system size you require, if your facility is ‘roof ready’ for a system, analyse your electricity bill and load profile and design and quote for a solar PV system accordingly,” adds Chilwan. SAPVIA has an accredited list of solar PV installers with PV GreenCards. The installers can be contacted for assessments and quotes.
Enquiries: www.sapvia.co.za
SPARKS ELECTRICAL NEWS
AUGUST 2019
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