According to foreign media reports, Cape Town-based renewable energy developer Sola Group, South Africa, plans to install two photovoltaic systems with an installed capacity of 100MW each, which has received approval from the National Energy Regulatory Agency (Nersa) of South Africa.
Both projects, both located in South Africa’s North West Province, will sell power through a power purchase agreement (PPA) to US titanium products supplier Tronox, which operates several mines and smelters in the region.
Dom Wills, CEO of Sola Group, said: “The significance of installing these two PV projects is that it will pave the way for the installation of more large-scale private PV projects to be approved to contribute to the electricity generation capacity of the grid. This sends a message to the market. A clear signal that private power is achievable and that there are some private investors willing to invest in this market.”
The South African government raised the installation threshold for distributed generation photovoltaic systems to 100MW in August 2021 and exempted developers from applying for power generation licenses to improve the entire licensing process. The new rules also require transmission fees to be paid to Eskom, a state-owned utility in South Africa, for the maintenance and upkeep of its infrastructure that transmits energy.
“Under this mechanism, IPPs can produce electricity in one area connected to Eskom’s grid and sell it to customers in Eskom’s other grid-connected areas,” Wills said.
The company expects to complete the financial settlement of the two PV projects in July and plans to complete construction within 14 months.
“The advantage of this framework is that it allows the development of a perfect photovoltaic area and provides electricity for industrial and mining areas,” Wills said. “A perfect photovoltaic area is a flat area with abundant solar power generation resources and has a high negative impact on the environment or society.” Small, simple underground conditions, and can connect strong grid nodes with good potential for electrical evacuation.
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