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Energize RE Supplement Creating a Cleaner, Brighter Future The 50 MW photovoltaic (PV) De Aar Solar PROJECT DESCRIPTION In November 2012 the project signed a 20 year Power project mobilised its construction teams Power Purchase Agreement with Eskom for the sale of electricity and an implementation agreement in December 2012 and is one of the first solar Located 6 km outside the town of De Aar on land with the Department of Energy for the project. facilities in the country to start construction owned by the Emthanjeni Municipality in the Mobilisation of the construction teams commenced as part of the South African Government’s Re- Northern Cape. The project will cover an estimat- in December 2012 and it is expected to be opera- newable Energy Independent Power Producers ed 100 hectares and will generate about 50 MW of tional in mid 2014. Programme (REIPPP). clean renewable power. Once constructed, the De When generating, the facility will supply enough Aar Solar Power facility will convert energy from clean, renewable electricity to power more than With demand for electricity continuing to grow in the sun into electricity using 167,580 PV panels 30,000 South African homes and eliminate over South Africa, the introduction of this clean energy that will be fed directly into the Eskom 132 KV dis- 82,040 tonnes of carbon emissions each year. will have far reaching benefits for the country’s tribution system. power sector, economy and people. TECHNICAL SUMMARY HOW IS ELECTRICITY PRODUCED Solar Panel Suntech STP 290/295, 24Vd 290/295 Watt FROM THE SUN? Photovoltaic (or solar cells) operate by means of two layers of PV Panel rated capacity 290 Watt and 295 Watt semiconductors, usually silicon. When light falls on the solar cells they create an electronic reaction. The voltage produced can Number Panels 167,580 (71,440 290 & 96140 295W) drive a direct current with one side of the cell receiving a nega- tive charge and the other receiving a positive charge. When a Size of panel 1 x 2m circuit connects the two sides, an electric charge is formed. A photovoltaic module is made by connecting a number of solar Inverter SINVERT PVS2400 cells electrically to each other and mounting them in a frame. The modules are connected together in strings and the direct current Construction period 16 months generated is carried through wiring to an inverter which converts the current to alternating current (AC) so it can be used to power Homes supplied (average) 21,200 homes and businesses. WHAT THE PROJECT MEANS FOR SOUTH AFRICA Generation for a Cleaner Environment into the environment. As solar energy does not con- consultation and has received full Environmental Authorisation from the Department of Environmen- Solar energy is one of the most promising renew- sume water during the generation process it also tal Affairs. able energy sources in the world. Solar panels can helps preserve scarce water resources. Sunshine is be used anywhere the sun shines and electricity plentiful and renewable so it won’t deplete natural The project owners are preparing registration of produced using the sun is clean. The use of solar resources or damage the environment. the project as a Clean Development Mechanism generation reduces the reliance on traditional power The project conducted a comprehensive Environ- (CDM) project under the Kyoto Protocol. plants which emit CO2 and other damaging gases mental Impact Assessment, which included public SAVINGS VOLUME UNIT Expected Electricity Production 85,458 MWh per year Power for South African Homes Approx 21,200 Houses per year year Annual CO2 emissions avoided 82,040 Tonnes per year Lifetime CO2 emissions avoided 1,640,800 Tonnes over lifetime of project Estimated water savings 161,729,260 Litres/ per year BENEFITS TO THE LOCAL COMMUNITY PROJECT OWNERS The local communities in the vicinity of De Aar Solar Power will benefit from the project in multiple ways, including: Droogfontein Solar Power has been made t &OUFSQSJTFEFWFMPQNFOUBOETPDJPFDPOPNJDEFWFMPQNFOUDPOUSJCVUJPOT possible by the dedication and commitment t $PNNVOJUZUSVTUPXOFSTIJQ BOE of many participants including the Govern- t &NQMPZNFOUBOEQSPDVSFNFOUPQQPSUVOJUJFT ment of South Africa, the Department of Energy, Eskom; local municipalities; commu- nity members; international and regional finan- ENTERPRISE DEVELOPMENT AND SOCIO ECONOMIC ciers, private investors and technical experts. DEVELOPMENT PROGRAMMES The project is owned by a consortium group Once the De Aar Solar Power project begins operations in mid 2014 it will spend a percentage of opera- of experts dedicated to providing clean, re- tional revenues on socio economic and enterprise development programmes. Enterprise development newable energy to the people of South Africa: includes initiatives to assist and accelerate the sustainability of local enterprises. Socio-economic devel- t Globeleq, an experienced operating pow- opment initiatives will promote access to the economy for all people. These programmes will continue er company actively developing energy for the 20 year life of the project and will focus on local communities within a 50 km radius of the project solutions for the emerging markets of . The programmes will be designed and implemented in consultation with the local municipality, com- Africa and the Americas, is the majority munity members and business leaders. equity investor in the project. The com- pany develops economically sustainable projects that support the continued de- COMMUNITY TRUST velopment of the electric power sector in Eight percent of De Aar Solar Power is owned by a community trust called the Rebuna Litsatsi Trust. emerging markets (www.globeleq.com). Mainstream Renewable Power, with a This ownership level is significantly higher than the government’s minimum threshold of 2.5% local t team of over 170 experienced people, ownership. The trust secured a loan from the Development Bank of Southern Africa (DBSA) to finance its Mainstream is developing more than share of the cost of constructing the project. The loan will be repaid through the shareholder dividends 15,000MW of solar and wind farms across generated by the project and once repaid, the trust will use its share of the dividends to benefit the local four continents. The project was devel- community within 50 km of the project. The trust structure and governance will be established in com- oped jointly between Mainstream and ing months in consultation with the local stakeholders. Genesis Eco-Energy. Mainstream is jointly managing construction with Globeleq and will remain a shareholder in the proj- ect during operation. (www.mainstream- rp.com) t Thebe Investment Corporation, a diversi- fied investment management company, which actively participates in the op- erational management of its core invest- ments. One of South Africa’s oldest black owned and controlled companies, Thebe was established in 1992 with a vision to be a trusted world class African company that develops and invests in businesses for the long term benefit of the community and other stakeholders. t The Rebuna Litsatsi Trust, a local com- munity trust established by the project company with the objective of carrying EMPLOYMENT AND PROCUREMENT out public benefit activities to benefit the local community in the areas of land re- During the construction period an average of approximately 70 people are expected to be required. form, enterprise development, education The number of jobs will vary from month to month depending on the stage of construction, with an and health. expected peak of approximately 300 jobs. More indirect jobs will be created or sustained at local manu- t Enzani Technologies an electrical & instru- facturers and suppliers. The contractor responsible for building the solar field is committed to employ- mentation engineering contractor which ing as many people from the local community as possible. provides services in the fields of engi- De Aar Solar Power and its contractor will procure goods and services from the local community where neering design, procurement, installation, testing and commissioning of electrical & possible. During the twenty year operation of the solar plant, around twenty long term jobs will be cre- instrumentation systems. Enzani has 18 ated to operate and maintain the facility. staff and is black women owned and man- aged. OTHER BENEFITS t Usizo Engineering is a consulting electrical Renewable energy is a relatively new industry in South Africa and the Department of Energy has created engineering firm that specialises in project a long-term framework through the REIPP program to develop the industry and provide sustainable work engineering & project management. The opportunities in the country. The De Aar Solar Power facililty provides the opportunity to contribute to firm has five offices in South Africa and employs 12 permanent staff members. training programmes for employees, suppliers and sub-suppliers to develop skills and expertise which Usizo is 100% black owned. can be applied to other projects, facilitating the development of the industry and sustainable employ- ment. The project owners have employed the services of experienced international and local contrac- The development of affordable, inexhaustible and clean solar energy tech- tors to ensure the highest quality, safety and nologies will have huge longer-term benefits. It will increase countries’ energy technical aspects are met. security through reliance on an indigenous, inexhaustible and mostly import-in- t Siemens Ltd, South Africa, part of the Sie- dependent
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