In light of ongoing grid constraints, some wind industry practitioners are warning that only about 2 GW of the 3.2 GW wind allocation in Bid Window Six (BW6) of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) is likely to be taken up, given that lower-priced solar photovoltaic projects could absorb a portion of the remaining available network in the key wind provinces of the Eastern and Western Cape. There are also warnings that South Africa’s logistics and construction sectors are not in a position to cope with the anticipated acceleration of wind-related project activity, which is increasingly likely to be driven by private-sector projects rather than the REIPPPP. Any further delays on the back of a protracted period of procurement disruption between 2015 and 2021 and difficulties in ensuring that projects procured under BW5 reach financial close will contribute to extending loadshedding, which has already intensified dramatically this year. Engineering News Editor Terence Creamer raised these concerns with South African Wind Energy Association (SAWEA) CEO Niveshen Govender, whose responses are outlined below.

Engineering News: Do you believe there is a risk that the full 3.2 GW allocated to wind as part of BW6 might not be taken up?

Govender: The wind industry has typically exceeded the allocation in terms of what has been submitted and constraints are usually related to grid capacity. Areas of high levels of wind resource are the most constrained. The allocation for the REIPPPP can only be taken up if there are sufficient bids which meet the Department of Mineral Resources and Energy (DMRE) and IPP Office guidelines at a competitive cost. We have seen that there are more bids, with a combined capacity of about 4.2 GW, than the allocation for BW6, which is 3.2 GW. Where there is available capacity, the best suited technologies for the country must be evaluated whilst considering maintaining the integrity of the programme.

Given that price is the key evaluation criteria and PV projects could come in cheaper than wind during BW6, is there a risk that grid capacity in areas of strong wind resources will be diverted to PV, which only has a 1 GW allocation?

The evaluation process allows for both wind and PV projects to be evaluated equally based on price and grid-connection availability, hence the most cost-effective projects will use up the initial grid capacity in a specific region. Once the allocation for one technology is used up (e.g. PV since it has a lower allocation as part of BW6), the remaining allocation for the bid round falls to the other technology whilst ensuring that the specific allocation for that technology is not exceeded. Although PV may allow for lower tariffs in certain instances, considerations need to be made as to the holistic set of factors required of a power generation facility, including the availability factor – with new wind energy projects reaching approximately 50%, that needs to be taken into consideration. It is within the purview of the government and system operator to lay out the requirements for a technology to meet the demand. As SAWEA, we advocate that the government and system operator consider these additional factors given the struggles the State utility is undergoing.

Is there anything that can be done to safeguard grid capacity for wind projects during BW6?

Grid capacity is one of the main constraints to the expansion of wind energy projects and renewable energy projects at large in South Africa. Preferred bidders are chosen by the IPP Office and DMRE through a rigorous closed-door evaluation process hence wind projects must comply with requirements as set out in the BW6 request for proposals (RFP) in order to ensure they are chosen as preferred bidders. Although as an industry we can see the advantages of safeguarding grid capacity for wind-specific projects, we must ensure that the integrity of the REIPPPP is not compromised.

Has the industry eng...

Eskom’s proposal to restructure renewable energy tariffs will impede growth in private sector investment in renewable energy projects and destroy intentions to wheel surplus energy through Eskom’s grid, as doing so will hold little financial gain, Meridian Economics MD Grove Steyn has said.

Speaking at public hearings held by the National Energy Regulator of South Africa (Nersa) on October 27, he said that, despite the need to balance Eskom’s revenue collection efforts with the need for a rapid rollout of renewable energy projects, the issue of restructuring tariffs was “very complex” and that loadshedding was the most pressing issue that needed to be resolved in the immediate term.

“Our main concern is that [Eskom] did not take into account the short to medium term economic reality in the power sector and the fact that we have a massive loadshedding crisis, and that reality did not seem to influence and shape the technical analysis they did for this proposal,” said Steyn.

He explained that South Africa was now heavily dependent on a rapid acceleration of private sector investment in distributed generation to help the country overcome loadshedding as soon as possible.

Loadshedding was made worse by “significant challenges” in terms of Eskom’s energy availability factor, as well as delays and challenges with the Independent Power Producer (IPP) Office’s procurement programmes, particularly the Risk Mitigation Independent Power Producer Procurement Programme and the Renewable Energy Independent Power Producer Procurement Programme, stated Steyn.

“We have a huge gap and we need to scale up the distributed generation sector rapidly,” he said.

“Our concern is that Eskom’s tariff restructuring proposals will have unintended consequences of substantially disincentivising and delaying the rollout of these critical investments in the short to medium term and that this should be avoided at all costs.

“[We dispute Eskom’s] proposal, in particular to transfer generation capacity cost recovery from variable to fixed charges,” Steyn said.

In this regard, he said that a main finding from a power system modelling study recently done by Meridian Economics – which was based on hourly data from Eskom from the entire power system in 2021 – showed that, with an increase in available renewables in the system, 96.5% of all loadshedding in 2021 would have been eliminated. “This is a really important finding.”

Another finding, Steyn highlighted, was that, even if Eskom paid for these new renewables, based on conservative cost assumptions, the utility would still have saved R2.5-billion in 2021, compared with its total generation costs. “The saving will be much larger for Eskom if it does not have to pay for the renewables.”

Therefore, he said that despite investors pouring money into embedded generation projects and bearing all the costs and risks associated thereto, they provide significant benefits to the power system currently “for free”.

This, Steyn said, was a prime example of a positive externality, and a “really important” part of the economics South Africa’s electricity grid currently faced, and which needed to be taken into account when considering tariff restructuring.

The savings stemming from using renewables are as a result of having to use, to a lesser extent, peaking power plants, which Eskom has recently been operating throughout numerous days to reduce loadshedding stages, he said.

Peaking power plants are designed and intended to be used only during peak power demand times, such as evenings, and are not intended to be relied upon for baseload generation throughout the day.

“Renewables have the opportunity to reduce how much we have to use those very expensive resources [the peaking power plants].

“On the pumped storage side, they are huge efficiency losses – about a third of the energy that we get from the pumped storage will be saved if we had additional renewables on the system,” said Steyn.

A similar point applies to Eskom’s op...

Eskom’s latest Transmission Development Plan (TDP2022) includes assumptions that deviate materially from those contained in the outdated Integrated Resource Plan of 2019 (IRP2019) and points to the need for a significant acceleration in grid-related investments to facilitate the integration of 53 GW of new generation capacity, mostly renewables, over the next ten years.

Covering the period from 2023 to 2032, the latest edition of the plan, which is published yearly, points to the need for the construction of 14 218 km of new high-voltage transmission lines over the period.

It also outlines the need for the deployment of 170 transformers, with a capacity of 105 865 MVA, along with 40 capacitors and 52 reactors to support stable and reliable grid operations and the integration of new generation capacity and load centres.

However, it deviates from earlier editions by proposing a front-loading, in the coming five years, of investments in new transformers to unlock 16.6 GW of grid capacity ahead of the introduction of major new power corridors, owing to delays in securing the necessary servitudes for such lines.

Eskom estimates that 12.1 GW of additional capacity can be unlocked in the north-eastern parts of South Africa through 23 transformation projects across multiple sites in the Mpumalanga, Gauteng, Free State, North West and Limpopo provinces.

A further 4.5 GW is earmarked to arise from 13 projects in the Northern, Eastern and Western Cape provinces, where South Africa’s wind and solar resources are at their most potent but where the grid has either reached its limits or is close to full capacity.

Transmission MD Segomoco Scheppers reports that, overall, the TDP2022 points to the need for investments with a combined value of R72.2-billion over the coming five years to add 60 transformers, with a capacity of 26 970 MVA, and 2 890 km of new high-voltage lines. The 11 325 km of line outlined in the ten-year plan are backloaded to between 2028 and 2032.

Scheppers told stakeholders that the revised assumptions were prompted by changes in the environment since the publication of the IRP2019, which was also being reviewed by government, as well as the fact that the TDP2022 extended beyond the IRP2019’s 2030 horizon.

The latest TDP has also been aligned with Eskom’s corporate plan to 2035, which has been shared with government and which incorporates an accelerated decommissioning of the existing, poorly maintained and unreliable coal fleet relative to the schedule outlined in the IRP2019.

The plan assumes that the energy gap will be closed largely using electricity derived from variable wind and solar photovoltaic (PV) generators, supported by some diesel and gas plants and a large deployment of battery energy storage.

Senior manager for strategic planning Ronald Marais indicates that, relative to the IRP2019, the TDP2022 assumes an accelerated decommissioning of an additional 3.4 GW of coal by 2030, largely on the back of an accelerated shutdown of Tutuka. However, Eskom is also assuming that the private coal plants included in the IRP2019 will not feature in the 2030 mix.

By 2032, the TDP2022 assumes that there will be 27.9 GW of coal, down from 39.4 GW currently, and that South Africa will have a 97.4 GW installed based, comprising coal (27.9 GW), wind (26.3 GW), solar PV (18.3 GW), open cycle gas turbines (8.4 GW), batteries (6.55 GW), imported hydro (4 GW), pumped storage (2.5 GW) and nuclear (1.86 GW) with landfill gas, small hydro, biomass and concentrated solar power making up the balance.

“Generation has become the primary driver for new transmission infrastructure, and we are aiming to capacitate the grid for new generation connections, of which wind and solar will be the two dominant technologies,” Marais says.

However, the transmission unit, which is in the process of being unbundled to become the National Transmission Company South Africa, is also prioritising the acquisition of ancillary services to ensure a stable s...

Engineering News Editor Terence Creamer discusses some of the highlights from Finance Minister Enoch Godongwana's Medium-Term Budget Policy Statement, which was delivered to Parliament on October 26.

Better-than-expected revenue collection enabled Finance Minister Enoch Godongwana to report an improvement in government’s fiscal position relative to the one forecast in the February Budget.

However, slowing global and domestic growth together with ongoing power cuts pose a risk to the fiscal outlook, as does the prospect of a higher-than-budgeted public-service wage settlement.

The National Treasury had already lowered its gross domestic product (GDP) growth forecast for 2022 to only 1.9%, having projected growth of 2.1% in February. GDP growth is also expected to average only 1.6% over the coming three years.

Revenue collections during the first half of 2022/23 were 9% higher than the same period of the prior year as the positive impact of high commodity prices continued.

The gross tax revenue estimate for 2022/23 was, thus, projected to be R83.5-billion higher, at R1.68-trillion, than the R1.59-trillion forecast in February.

Godongwana said government would use a portion of this revenue to reduce the budget deficit, with the consolidated budget deficit projected to narrow from 4.9% of GDP in 2022/23 to 4.1% next year, 3.9% in 2024/25 and 3.2% in 2025/26.

However, spending on health, education, local government free basic services, infrastructure, and policing would also be increased, along with support for Denel, Sanral and Transnet.

Additional new expenditure of R37-billion was outlined for 2022/23, comprising R54.1-billion in spending increases, partially offset by projected underspending.

SANRAL, TRANSNET, DENEL SUPPORT

Sanral would receive an additional R23.7-billion to pay off government-guaranteed debt, which is said to be conditional on a solution to Phase 1 of the Gauteng Freeway Improvement Project (GFIP).

In addition, Godongwana announced that a decision had been made to transfer Sanral’s R47-billion debt relating to the GFIP to the national and Gauteng governments in a bid to resolve the long-standing e-toll issue.

He also revealed that the Gauteng provincial administration would assume responsibility for the cost of maintaining the 201 km of highway and associated interchanges, as well as any future investments.

Seventy percent of the debt, or R32.9-billion, would be absorbed by the national government, while the Gauteng provincial government would take on the 30% balance, or R14.1-billion.

Another R5.8-billion would be directed to Transnet, half to repair infrastructure damaged by the April floods in KwaZulu-Natal, and half to increase locomotive capacity, which together with theft of cable and lines was undermining the performance of some key export corridors.

Transnet Freight Rail has confirmed that it has over 300 locomotives currently out of service, owing to a long-running dispute with its Chinese supplier, which has refused to provide the utility with locomotive spares. A recent in-principle settlement agreement is expected to clear the way for both the delivery of spares and additional locomotives.

Arms manufacturer Denel would receive R3.4-billion to complete its turnaround plan and R204.7-million to reduce contingent liabilities arising from its weak financial position.

The Minister said that discussions were still under way to consider options for a replacement for the temporary Covid-19 social relief of distress grant, which was currently being distributed to 7.4-million people.

“No final decision has been made about a replacement or how it would be financed. As a result, the temporary grant will be extended for one year until March 2024.”

PRIMARY SURPLUS

Godongwana also announced that government expected to achieve a primary budget surplus, with revenue exceeding non-interest spending, of 0.7% in 2023/24.

However, he did not provide details of what was expected to be a R200-billion debt-relief package for Eskom, announcing that the scale and the structure of the programme would be unveiled only in February.

Gross debt is now projected to stabilise at 71.4% of GDP in 2022/23, representing a mater...

Finance Minister Enoch Godongwana has confirmed that government will take over between one-third and two-thirds of Eskom’s R400-billion debt, as intense loadshedding, which government expects to persist for 18 months, contributed to a downward revision to the country’s growth outlook.

The National Treasury is now forecasting real gross domestic product growth of only 1.9% for 2022, having projected growth of 2.1% in the 2022 Budget Review published in February.

Delivering his Medium-Term Budget Policy Statement (MTBPS) to Parliamentarians in the Cape Town City Hall during ongoing power cuts, Godongwana said details of the debt-relief package, along with the conditions, would be outlined during the 2023 Budget, in February.

Godongwana’s decision to delay an announcement on the structure and scale of the relief package was unexpected, given the broad-based expectation that the package, which has been on the cards for years, would be finally unveiled during the MTPBS.

These expectations were reinforced by the July 25 address of President Cyril Ramaphosa, when he signalled that debt relief would be part of the interventions being pursued to tackle intensifying loadshedding.

Alexforbes chief economist Isaah Mhlanga, who expected a R200-billion debt-relief package, said that markets, investors, and credit rating agencies expected some solution so that they could properly assess South Africa’s fiscal position and, therefore, its credit rating.

The Minister described the matter as complex and requiring consultation with bondholders before it was implemented.

He said the intervention, once finalised, should permanently ease financial pressure on the utility, so as to enable it to implement its unbundling into three units of generation, transmission and distribution, while freeing up resources for investment by these units.

It would also be designed to ensure that the utility – identified as the largest long-term risk to the economy, owing to its high debt levels and unsustainable business model – no longer relied on government bail-outs.

“While the selection of the relevant debt instruments and the method of effecting the relief is still to be determined, the quantum is expected to be between one-third and two-thirds of Eskom’s current debt,” he said, indicating that both guaranteed and non-guaranteed debt was being considered.

He stressed, too, that the relief was unlikely to be implemented in a single fiscal year.

In 2019, government announced a R230-billion support package for Eskom and R140-billion of that package had already been disbursed, with another R21.9-billion injection earmarked for the 2022/23 financial year.

In addition, Eskom represented a large component of the contingent liabilities outlined in the national accounts, which stood at R758-billion and were expected to breach the R1-trillion level in 2024/25.

The National Treasury’s guarantee exposure increased from R567-billion in 2020/21 to R594-billion by March 31, driven largely by further drawdowns by Eskom, which accounts for 78% of guarantees to State-owned companies.

“The National Treasury is leading a process to finalise a debt relief programme designed to restore Eskom to efficiency and financial sustainability.

“The specifics of the programme, including the selection of the relevant debt instruments and the method of effecting the relief, are still being finalised.”

STRICT CONDITIONS

Nevertheless, the National Treasury insisted that the programme would include “strict conditions” on Eskom and other stakeholders before and during the debt transfer.

The identity of the other stakeholders was not provided, but is expected to include the National Energy Regulator of South Africa, whose decision to exclude a R69-billion National Treasury injection from Eskom’s allowable revenue in a tariff determination neutralised the effectiveness of the injection in stabilising the utility’s finances. That decision was subsequently overturned by Eskom in the courts.

“These con...

Finance Minister Enoch Godongwana announced on Wednesday that a decision had been made to transfer Sanral’s R47-billion debt relating to the Gauteng Freeway Improvement Project (GFIP) to the national and Gauteng governments in a bid to resolve the long-standing e-toll issue.

In addition, the Gauteng provincial administration would assume responsibility for the cost of maintaining the 201 km of highway and associated interchanges, as well as any future investments.

The Gauteng administration, the Minister said, would have the power to decide whether the maintenance and any future investments would be funded through the existing electronic toll infrastructure, new toll plazas, or any other revenue source within their area of responsibility.

Godongwana announced that 70%, or R32.9-billion, would be absorbed by the national government, while the Gauteng provincial government would take on the 30% balance, or R14.1-billion.

He described the protracted uncertainty surrounding the GFIP as having had major negative implications for road construction in the country.

“We need to move on from the debates of previous years and find solutions to this challenge.

“To resolve the funding impasse the Gauteng provincial government has agreed to contribute 30% to settling Sanral’s debt and interest obligations, while national government covers 70%.”

He also used his Medium-Term Budget Policy Statement address to announce that government was proposing to make an initial allocation of R23.7-billion to Sanral to support it with its immediate debt commitments.

The money, he added, would be disbursed on strict conditions.

The decision to pursue a debt transfer, as well as to transfer responsibility for the roads back to the province, had been taken so as to improve Sanral’s balance sheet and enable it to “do what it does best, which is to build and maintain roads”.

He described as “political” the decision not to implement the user-pay principle, which had met with overwhelming resistance not only from motorists but also politicians, including the African National Congress in Gauteng.

The debt transfer comes as government moved to pursue a similar, but far larger, transfer of a portion of Eskom R400-billion debt.

Godongwana said details of that debt transfer would be announced in the February Budget.

The Organisation Undoing Tax Abuse (OUTA), which was initially established to fight against the implementation of e-tolls in Gauteng, described the MTBPS address as "a clear indication that the e-tolling of the Gauteng freeways will be halted".

"OUTA has fought for over a decade to bring an end to the failed e-toll scheme, which was a battle fought through courts, through official inquiries, across social media, in protests on bridges and outside government offices, through millions of unpaid e-toll bills and the defence by OUTA of thousands of summonses by Sanral chasing debt," CEO Wayne Duvenage said in a statement.

He described it as a "massive victory for civil society" and a "significant message to government never to ignore the voice and the power of the people".

Duvenage stressed, however, that ending e-tolls had two aspects: establishing the alternative funding solution for the GFIP, and the legal dismantling of e-tolls.

"The Minister of Transport, Fikile Mbalula, should now announce the way forward to legalise the situation for users of the Gauteng tolled roads.

"OUTA believes that Sanral and the Department of Transport must now retract the notices which declared the GFIP roads as toll routes, which enabled tolls to be charged."

The organisers of this year’s inaugural Ilanga Cup Solar Challenge say the event will be back next year, albeit in a somewhat different format.

The 2023 edition will return to the Red Star Raceway, in Delmas, on July 5 and 6.

“We are thrilled to officially launch the highly anticipated Ilanga Cup Solar Challenge for 2023,” says race director Robert Walker.

“The inaugural event made great impact on the region. We have received lots of interest from schools and universities across Southern Africa that want to participate in the solar challenge.

“As the event focuses on driving the innovation of renewable energy within the transportation sector, it is important that we get young people involved and give them the platform to experiment with different energy concepts in order to contribute towards sustainable mobility,” adds Walker.

The Ilanga Cup Solar Challenge is Southern Africa’s first closed track endurance challenge.

The event has been created for teams to put their solar vehicles to the test in a controlled environment, designed to measure the vehicles' performance, efficiency and durability.

Next year’s event will incorporate some new features for the solar car teams.

Among other changes, the event is moving from an eight-hour to a 24-hour endurance challenge.

This will see teams truly test their vehicles, as well as push the limit of solar technology during both day and night settings.

“The Ilanga Cup is the first-ever solar challenge in Africa to conduct a 24-hour solar event,” notes Walker.

“We believe that, with this format, the participating teams will be able to gather useful data for the development and further improvement of solar technologies for sustainable transportation.”

Registration for the 2023 Ilanga Cup Solar Challenge is now open.

Transnet Freight Rail (TFR) CEO Sizakele Mzimela reports that the group’s plan to procure new locomotives will be put on hold in light of the recent in-principle agreements reached between Transnet and two original equipment manufacturers with which it has been in legal dispute – CRRC E-Loco, of China, and Alstom, which recently acquired Bombardier Transportation (BT).

Speaking during a briefing held to outline the progress TFR was making to recover from a recent strike, Mzimela reported that the agreements were likely to result in TFR securing both much-needed spares, the absence of which had left 311 locomotives standing idle, as well as the outstanding locomotives procured in 2015 under the so-called 10-64 contract, which was the subject of intense State-capture scrutiny during the Zondo Commission.

The inquiry found that the increase in the price of the procurement of the 1 064 electric and diesel locomotives from R38.6-billion to R54.5-billion was based on misrepresentations by senior executives and was to the detriment of Transnet, which had subsequently declared the contracts unlawful.

Under the contract, which was split between four suppliers, General Electric was awarded a contract to supply 233 of the 465 diesel locomotives, while China North Rail was contracted to supply the 232 balance. China South Rail was awarded a contract for 359 of the 599 electric locomotives ordered, with BT to supply 240. The two Chinese firms subsequently merged under CRRC.

In August, Transnet and CRRC E-Loco announced an in-principle agreement in relation to legal disputes between the companies, with a similar agreement reached with Alstom in early October.

“Now that we have an in-principle agreement that has been reached with both [CRRC E-Loco] and with BT-Alstom we believe that this will allow us to have sufficient locomotives to carry us through at least for the next three to four years,” Mzimela stated.

“So, at this stage, while we still have intentions to again go for an open-market tender for additional locomotives that will now be held back until we have received the full order from the Chinese and from BT.”

Prior to the agreements, Transnet CEO Portia Derby indicated that the group was preparing to procure about 400 new locomotives to close the gap given that Transnet had taken delivery of 595 locomotives under the 10-64 contract. The tender was initially expected for release in July, but never materialised.

Mzimela also reported that the agreement opened the way for TFR to receive the spares it required from CRRC E-Loco to return 311 idle locomotives to service, which would alleviate the capacity constraints on several corridors, most notably the North Corridor, which transports export coal.

Ahead of the strike, the Minerals Council South Africa estimated an export loss of R50-billion on an annualised basis this year for iron-ore, coal, chrome, ferrochrome and manganese exporters as measured by delivered tonnages by TFR against contracted rail tonnages.

TFR said the iron-ore had recovered well since the strike and that it had not revised its 60-million-ton export-coal target for the 2022/23 financial year, notwithstanding the fact that the corridor had been seriously disrupted during the recent strike.

“The in-principle agreement that has been reached with the Chinese will result in them helping us to bring back to service the long-standing locos first, but also to complete, once everything has been finalised, the supply of the outstanding number of locomotives that would have been part of the initial order,” Mzimela said.

The spares are required for the 53 Class 20E and 67 Class 21E locomotives.

It is anticipated that the agreement with Alstom will similarly allow for the completion of that contract, with Transnet having revealed recently that 85 of the BT locomotives had been delivered to date.

Overall, it is understood that Transnet has taken delivery of 595 locomotives arising from the 2015 contract, representing 56% of th...

Saudi developer, investor and operator of power generation, water desalination and green hydrogen plants ACWA Power and South Africa’s State-owned development finance institution the Industrial Development Corporation (IDC) have signed an extensive memorandum of understanding (MoU) exploring a partnership in the development of green hydrogen production and its derivatives in South Africa.

This partnership coincides with the State visit of President Cyril Ramaphosa to the Kingdom of Saudi Arabia.

The agreement was digitally signed by ACWA Power CEO and vice-chairperson Paddy Padmanathan; ACWA Power chief investment officer Clive Turton; IDC industry planning and project development head Rian Coetzee; and IDC legal services manager Russell Wallace, with agreement copies exchanged at a gathering attended by executive dignitaries.

This is the first agreement of its kind between ACWA Power and the IDC, but the parties have previously collaborated for equity in a renewable energy plant in South Africa.

The potential value of this MoU is estimated at $10-billion. ACWA Power will function as the developer for green hydrogen and its derivatives in South Africa, with the IDC acting as co-developer and equity partner in the proposed projects.

South Africa has set a 2050 net-zero target and plans to become a significant producer and exporter of green hydrogen and its derivatives.

Accordingly, the South African government has mandated the IDC to lead the development and commercialisation of the green hydrogen economy. The IDC, in partnership with the Green Hydrogen Panel, is in the process of finalising the South African Green Hydrogen Commercialisation Strategy (GHCS).

“The IDC recognises the substantial value and benefits that the green hydrogen economy will bring to South Africa. The green hydrogen economy presents new economic, skills, employment and community opportunities for the country. We are pleased to explore potential partnership opportunities with ACWA Power, given its pedigree and expertise in this industry,” says IDC COO Joanne Bate.

Given ACWA Power’s experience in the South African renewable energy industry and in green hydrogen projects abroad, the company posits that it can play meaningful role in supporting the objectives of the GHCS.

The parties will carry out a feasibility study, potentially cooperate, jointly develop and co-invest in projects in the green hydrogen value chain in South Africa. This MoU with ACWA Power will support the implementation of the GHCS and is expected to contribute towards the country’s green hydrogen production targets.

ACWA Power has had a footprint in South Africa since 2016 and currently has two solar energy plants – Bokpoort and Redstone – in the country. Both projects use concentrated solar power technology.