News is filtering out of the renewable energy manufacturers that stand to benefit as a result of the conclusion of South Africa’s second-round Renewable Energy Independent Power Producers Program (REIPPP) auction. The South African government awarded preferred bidders contracts to develop seven large-scale wind power projects to end its second-round auction on May 21, the latest step forward in its strategic plan to diversify its energy base through the production of clean, renewable energy.
Wind power project awards make up 562.5 MW out of a total 1,043.9 MW of renewable energy capacity South Africa’s Dept. of Energy awarded. Denmark’s Vestas and India’s Suzlon are among the wind turbine manufacturers who will play a big part in helping South Africa realize its renewable energy, as well as broader social, economic and environmental goals.
Vestas, Suzlon Wind Turbine Winners in South Africa’s Renewable Energy Auction
The worlds’ fifth-largest wind turbine manufacturer, Suzlon has been chosen by South Africa’s Exxaro Resources and India’s largest power utility, Tata Power Co. Ltd. as the preferred supplier for their Cennergi joint venture’s 138MW South African wind farm.
Terms that still need to be finalized call for Suzlon to deliver 66 of its S97-2.1MW wind turbines for the project, part of a full engineering, procurement and construction (EPC) agreement. If all goes well, construction of the Cennergi wind farm is expected to begin in early 2013.
Vestas came out a big winner as a result of the second-round contract awards. The world’s second-largest wind turbine manufacturer has been selected as the supplier to five South African wind energy projects with a combined capacity of 297MW:
- West Coast 1, 94 MW, Developer: GDF Suez/IPR
- SA Tsitsikamma, 95.33 MW, Developer: Cennergi (Pty) Ltd.
- Grahamstown, 24.60 MW, Developer: EDF EN France
- Grassridge, 61.50 MW, Developer: EDF EN France
- Chaba, 21.53 MW, Developer: EDF EN France
These add to the two first-round Renewable Energy IPP Program wind energy projects for which Vestas is supplying wind turbines. Vestas has now been chosen as the preferred supplier of wind turbines for 36% of the wind power contracts– totaling 435.1MW– awarded by the South African government to date.
Advancing SA’s Clean Energy Economy Plans
Both Vestas and Suzlon South Africa executives highlighted the wide-ranging benefits of helping build South Africa’s wind and renewable energy infrastructure.
“Our objective is to provide not only clean and green energy, but also to create many jobs. This venture shows how a South African Black empowered developer (Cennergi) partnered with a South African Black empowered manufacturer (Suzlon) can ensure that the Government’s commitments on wind energy are realized,” commented Suzlon South Africa CEO Silas Zimu.
“We see yesterday’s news as further proof of our focus on building the wind energy industry in South Africa and ensuring that we contribute to the social and economic development of South Africa and its people,” stated Vestas South Africa sales manager James White.
“The tender process puts a strong emphasis on local content. “These projects will not only deliver clean energy, but also benefits to the communities where these projects will be built,” White stated.
“This includes skills development through Vestas’ integrated education, training and career opportunity structure that will help to develop and train a workforce that meets the skills requirements of the promising renewable energy industry in South Africa.”
The wind turbine suppliers have six months to complete financing of the wind and renewable energy projects. During this period, Vestas and Suzlon need to negotiate and finalize turbine supply, service and maintenance, and construction contracts.