U M OYA E NE R G Y (R F ) ( P T Y ) LT D
Round 1 wind farms shift focus to operations and community projects www.sawea.org.za
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Good Example in South Africa IPPs Set a
Umoya Energy has demonstrated its commitment to not only contribute to creating a greener future for the country, but also the ongoing provision of community upliftment projects Writer: Emily Jarvis • Project Manager: Tom Cullum
Cookhouse Wind Farm
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moya Energy is an IPP (Independent Power Producer) created as a special purpose vehicle (SPV) to develop and own Hopefield Wind Farm, South Africa’s first wind farm to reach commercial operation date (COD) on 1 February, 2014. Umoya is a recognised name in South Africa’s wind energy sector, having been on the renewable energy scene since the start of the REIPPP Programme this decade. During this time, the Company has been joined by a wide range of local and international IPPs also seeking to participate in the
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flourishing renewable energy industry in South Africa. “The shareholders of both of our wind farms [Hopefield and Cookhouse] have taken an active and supportive role throughout the development, construction and operational phases. Given that both projects were built in the first round of the REIPPP Programme, shareholder support was welcomed as we have navigated what was fairly uncharted territory in South Africa,” says Sam Cook, Technical Manager for Hopefield Wind Farm and Cookhouse Wind Farm. Since completing construction, Umoya has turned its attention to
optimising the operation of its power plant as well as implementing and supporting community projects in the Hopefield area. “The South African Wind Energy Association (SAWEA) is promoting coordination between its members, and some IPPs whose projects are in close proximity are already preparing to work together on economic development (ED) projects. Given that Hopefield Wind Farm (HWF) has been fully operational for more than 17 months now, our attention has turned to economic development (ED) initiatives, in addition to continuing in our efforts to optimise operation
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and maintenance (O&M) of the wind farm,” Cook explains. As with other Round 1 projects, the necessary skills for building-out both wind farms were sourced through a combination of local and foreign companies. Now, as operating plants, the requisite skills are largely and increasingly coming from within South Africa as the companies involved invest in ongoing training and development of staff. Cook continues: “Both O&M contractors [Vestas for Hopefield and Suzlon for Cookhouse] are continually training their wind turbine service technicians. Suzlon has 15 South African technicians on staff who operate and maintain our S88 turbines. They began their training as wind turbine technicians at our wind farm during the construction phase and some have even visited India for training. Their training and professional development is ongoing.”
Driving costs down
Wind energy alone is predicted to contribute around R7 billion to the community development over the next twenty years. We think this will fundamentally transform these rural communities for the better
Creating a highly skilled pool of talent is vital considering the rapid growth of wind power in South Africa in general. While it is subsequently having an extremely positive effect on the country’s economy, it is also helping to mitigate power generation challenges, as well as delivering cost savings to those participating in the REIPPP Programme, which in turn leads to cheaper electricity. Commenting on the current state of the industry and its economic impact in SA so far, SAWEA comments: “Research by the Council for Scientific and Industrial Research (CSIR) has shown that wind energy is presently costing South Africa less than nothing. Savings in diesel and coal costs should be added to the economic savings
REIPPPP Renewable Energy Independent Power Producer Procurement Programme South Africa has a high level of Renewable Energy potential and presently has in place a target of 10,000 GWh generated by renewable energy sources. The required generation capacity from renewable energy sources is estimated at 3,725 megawatts to ensure the continued uninterrupted supply of electricity throughout South Africa. This IPP Procurement Programme has been designed so as to contribute towards the target of 3,725 megawatts and towards socio-economic and environmentally sustainable growth, initiating the growth and stimulation of the renewable industry in South Africa.
Hopefield Wind Farm
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Hopefield turbine
from avoided load shedding. These benefits have increased significantly in the past six months, over the previous period. If we assume South Africa will be electricity constrained until 2020, it is fair to assume that an expansion of the REIPPP Programme will yield enhanced benefits. “We believe that the South African government agrees with this logic, leading to the Minister of Energy’s recent announcement that the Programme is being expanded and expedited. Wind energy alone is predicted to contribute around R7 billion to the community development over the next twenty years. We think this will fundamentally transform these rural communities for the better.” Those within the industry hope that firm commitments will be made with respect to megawatts allocated under future rounds of the REIPPP Programme in order to enable further investment in local manufacturing.
Cookhouse Wind Farm
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ALESCO
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lesco is a global insurance broker and risk management consultant, with specialist teams operating in the power and energy industry. We represent our clients throughout the development, construction and operational phases of Independent power projects, interacting with sponsors, lenders, contractors and any other parties engaged in your Project. Our expert teams design, arrange and service construction and operational insurance programmes. Our client base on the African continent spans 6,000 MW of independent power across 15 countries and includes thermal, hydro, wind and solar projects.
Cookhouse, the largest wind farm in Africa today
Cookhouse Wind Farm
Located near the town of Cookhouse in the Eastern Cape Province, Cookhouse Wind Farm comprises 66 turbines, each with a hub height of 80 metres, giving a total installed capacity of 138.6MW. One of the largest wind farms in Africa, it reached COD in November 2014 and has been delivering electricity to the Eskom grid since then. Jannie Retief, CEO of Cookhouse Wind Farm, says that the project is expected to deliver around 370,000MWh per annum of clean
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energy into the grid; which is enough electricity to power 138,000 lowincome homes or 57,000 mediumincome houses. “The excellent cooperation of contractors, subcontractors, shareholders, lenders and Eskom, underpinned by a strong contractual framework governing these relationships, has supported the realisation of the project. This made Cookhouse, the largest wind farm in Africa today, a reality,” he continues. In order to produce the same amount of electricity using fossil fuels, a South African coal-fired power station would emit approximately 384,000 tonnes of CO2 every year; equivalent to taking over 78,000 cars off the road. Cookhouse Wind Farm has established itself as a market leader in a number of aspects. Over and above being the largest South African wind farm at the time, it is 25 percent owned
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On our key projects across the continent we work in tandem with our Africa partner, Lapis Re, to ensure we consistently provide our clients with the global expertise and local knowledge needed to deliver innovative and competitive insurance solutions. Lapis Re is a renewable energy specialist insurance and reinsurance broker with international presence but rooted in Africa powering our client’s insurance solutions on the continent in respect of Development, Construction and Operational Projects. Our benefits to our clients engaged in Power Generation, Transmission and Distribution is our ability to provide investor security through insurance solutions that result in materialized and sustainable projects by applying knowledge, skill and the know-how in the 14 countries we have conducted business on the continent. Henry Croft-Baker - Partner T +44 (0) 207 204 6191 E Henry_Croft-Baker@alescorms.com Bob Lock - Partner T +44 (0) 207 204 1824 E Bob_Lock@alescorms.com Devash Appalraju – Director T +27 (0) 31 819 7872 E Devash@lapisre.com
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MANY INSURANCE DEMANDS, ONE INSURANCE SPECIALIST For independent power producers With experience servicing 6,000MW of independent power in 15 countries across Africa, including thermal, hydro, wind and solar projects, our team of experts understands your complex business needs. For more information visit:
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Alesco is a trading name of Alesco Risk Management Services Limited. Alesco Risk Management Services Limited is an appointed representative of Arthur J. Gallagher (UK) Limited which is authorised and regulated by the Financial Conduct Authority. Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AW. Registered in England and Wales. Company Number: 1193013.
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ARCUS CONSULTANCY
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rcus Consultancy Services is an environmental, planning and engineering consultancy, based in Cape Town, South Africa. Arcus Ecologists are undertaking environmental monitoring at the Hopefield Wind Farm in the Western Cape, South Africa, one of the first operational facilities in the country, to understand and minimise the impacts of wind turbines on bats and birds. Arcus designed the monitoring survey which employs Hopefield community members to undertake regular searches for bats and birds, giving them opportunities in the environmental and renewable energy sectors. Arcus is committed to delivering technically sound projects efficiently and with minimum risk.
www.arcusconsulting.co.za
Hopefield Home Improvement Project
by the local community through the Cookhouse Wind Farm Community Trust; five times the governmental target for local community ownership. The project has already supported many local charitable organisations including soup kitchens, special day-care centres for children with disabilities, care homes for the elderly, foster care homes and sports facilities. The establishment of the Community Trust will ensure that local development projects will continue to benefit from dividends throughout the 20-year project life.
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Hopefield Home Improvement Project
Over a period of two years, 19 previously unemployed residents in Hopefield are being trained and working as artisans
The Hopefield Home Improvement Project is the first major project undertaken by the Hopefield Wind Farm Local Community Company. Over a period of two years, 19 previously unemployed residents in Hopefield are being trained and working as artisans making improvements to more than 600 homes in this small town in the Western Cape. “The Home Improvement Project will see the installation of solar water
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Environmental Consultants Committed to delivering technically sound projects efficiently and with minimum risk.
Tel: +27 (0) 21 412 1529 Cell: +27 (0) 76 340 8914 Email: AshlinB@arcusconsulting.co.za Arcus Office 211 Cube Workspace, Cnr Long Street and Hans Strijdom Avenue, Cape Town, 8001 www.arcusconsulting.co.za
geysers, insulated ceilings and electrical reticulation in Hopefield homes. By the end of June, a total of 207 homes had been completed by the 19 local artisans who are being trained in plumbing, electrics or carpentry. Their training commenced with a four week course at Northlink College in Cape Town. “The artisans are now honing their skills further with on-the-job training. The project aims to prepare them for employment or entrepreneurship roles in construction and related sectors. We are looking at ways to assist them in this regard,” explains Cook.
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MARSH IS DELIVERING CHANGE WHERE OTHERS SEE RISK, WE SEE OPPORTUNITY Proudly leading the market in the South African REIPPP MARSH AFRICA Africa’s pre-eminent Insurance Broker and Risk Advisor www.africa.marsh.com | +27 11 060 7100
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