Pretoria - The National Energy Regulator of South Africa (Nersa) has granted a license for Eskom’s Sere wind farm, the parastatal said on Monday.
The granting of the license will open the way for construction to go ahead on the R2.4 billion project which is due to be in full commercial operation by the end of 2014.
This was a milestone for Eskom’s move towards a cleaner energy mix.
“Sere is our first large-scale renewable energy project. It demonstrates our commitment to reducing our carbon footprint and to investing in a sustainable energy future,” said Eskom Chief Executive Brian Dames.
Located near Koekenaap (Vredendal area) in the Western Cape, the farm will generate up to 100 MW of power for the national grid, avoiding nearly 4.7-million tonnes of carbon emissions over 20 years.
The project has been funded by a group of development finance institutions, including the World Bank, African Development Bank, Clean Technology Fund and Agence Francaise de Developpement.
Sere takes its name from the Nama word for “cool breeze”.
“We are very pleased that we have been able to take advantage of attractive financing from international development finance institutions to construct the project at costs which compare favourably with the market,” Dames said.
The levelised cost of the Sere plant compares favourably with the average of R1.14/kWh for the independent power producers procured in Phase 1 of the Department of Energy’s renewable energy procurement programme and the 89.7 c/kWh in Phase 2, reflecting Eskom’s lower cost of capital.
The total overnight cost of the Sere project (calculated at $2516/kWh) is within the International Energy Agency benchmarks.
The utility expressed its support of Government’s Renewable Energy Independent Power Producer (REIPP) programme, which will introduce 3 725 MW of new generating capacity (mainly wind and solar).
Eskom has already signed power purchase agreements with the independent power producers procured by the Department of Energy in Phases 1 and 2 of the programme and stands ready to connect the new producers to the national grid.
Eskom’s Sere wind farm will comprise 46 Siemens 2.3-108 wind turbine generators and is expected to deliver first power to the national grid in the first half of 2014, with full commercial operation scheduled by the end of 2014.
The project includes construction of a new substation and a 132 KV distribution line. It will create approximately up to 170 direct jobs during the construction phase.
It has an expected operating life of 20 years, with average annual energy production of about 233 000MWh, enough clean energy to power about 97 000 standard homes. - SAnews.gov.za
