Concentrating Solar Power Chosen for Spate of South African Projects

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Written by Richard Finlayson, Senior International Editor for Industrial Info--Solar-generated power is taking a larger share in South Africa's forward energy plans, and concentrating solar power (CSP) is the technology of choice among a number of major project developers. A key factor is the ability of CSP to store generated power for more than the regulation six hours. The ability to store the power, using a number of technologies, means that the output can be managed and distributed at times of optimum demand, and thus optimizes the return on capital. Two of the main storage technologies are steam- and water-based, and molten salt-based.

Major South African and international energy and construction companies are developing projects. Group Five (JSE:GSF) (Sandton, South Africa), a global civil and construction company, is planning a $735 million, 150-megawatt (MW) solar power plant in the Kalahari Solar Park at Kathu, using parabolic trough technology. The company believes that CSP creates more jobs than other renewable technologies, and that it can use more local content in the construction process than wind-sourced power projects or solar photovoltaic (PV) plants. Group Five's Kathu plant will create 1,000 construction jobs and 80 permanent operational and maintenance jobs. For related news item, see February 25, 2011, article - Fluor Develops Master Plan for South Africa's 5,000 Megawatt Solar Park.

Exxaro Resources Limited (OTC:EXXAY) (Pretoria, South Africa) last year withdrew from a CSP project in the country's northern Limpopo province, citing lower levels of solar radiation than expected and higher final project costs than originally estimated. The company is joining a consortium to develop solar power facilities in the Northern Cape, which is becoming the center of South Africa's solar industry.

Solafrica (Sandton, South Africa) has joined with Saudi Arabia's ACWA Power International as a strategic partner in a $515 million project using parabolic trough technology at Groblershoop in the Northern Cape. The project is also supported by independent funds and has a black empowerment partner and is in ongoing talks with a large local company. ACWA is a Saudi Arabian company with project creation and development experience on major power and water projects in the Middle East.

Ilangalethu Solar Power Pty Limited is planning a parabolic trough CSP plant east of Upington in the Northern Cape, on a 500-hectare site. The national power utility, Eskom (Johannesburg), is also planning a 100-MW CSP plant in the area using a solar tower application. Eskom is also working on a major transmission and distribution network in the area to handle the grid input requirements of the spate of solar power development coming through in the next five years. South Africa's Industrial Development Corporation (IDC) (Sandton) is believed to be participating in all the projects mentioned, except for the Group Five Kathu plant.

The government's integrated resource plan of 2010 allocated 1,000 MW for CSP through 2025, 8,400 MW for wind power, and 8,400 MW for solar PV. The current trends may see these allocations superseded. The SA Solar Thermal and Electricity Association is asking for 2,000 MW of CSP by 2020 and 10,000 MW by 2030. The association estimates that 10,000 MW of CSP would create 80,000 to 100,000 construction jobs, 8,000 to 10,000 operation and maintenance jobs, and 3,000 to 5,000 manufacturing jobs.

The solar development companies are now in competition for the first 200-MW CSP tranche of the renewable energy feed-in tariff (Refit) program. The finer details of the national power plan have yet to be finalized, including the prospects for independent power producers. With a wide range of power project proposals waiting for the final implications of the forward strategic plans, the current allocations could come under heavy pressure to have levels adjusted upwards. For related news, see March 25, 2011, article - Strong Reactions as South African Regulator Cuts Back on Renewable Feed-In Tariffs.

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