Search results

Developers of the Kpep hydro project have completed environmental and social, geotechnical, hydrological, design and engineering and market studies and the first-phase feasibility report. Joule Africa said in its quarterly newsletter on 26 March that the report had been submitted to the government, and would soon be presented to local stakeholders, after which key commercial terms would be discussed with the government.

The African Development Bank (AfDB) has signed a €20m ($26.7m) partial risk guarantee (PRG) to support construction of a transmission line to connect the 310MW Lake Turkana Wind Power project in northern Kenya to the national grid near Nairobi. Issued via the Bank’s African Development Fund (ADF) concessional loans arm, the PRG is the first of its kind for the AfDB and crucially, will allow project company Lake Turkana Wind Power (LTWP) to draw down on its long term debt, rather than relying on equity to fund construction, as has been the case until now.

Ethiopia on 16 December formally inaugurated the 1,870MW Gibe III hydro-electric plant on the Oromo River. The 234-metre dam, Africa’s tallest, was built by Italy’s Salini Impregilo, which signed a contract for the project in 2006, but construction was delayed by problems securing funding, until Industrial and Commercial Bank of China stepped in to provide 60% of the €1.5bn ($1.56bn) cost, while the balance was covered by the Ethiopian government. Electrical and electromechanical equipment was provided by Dongfang Electric Corporation. The first turbines started generation in October 2015.

The government of São Tomé and Príncipe signed a memorandum of understanding on 21 September with the United Nations Office for Project Services (UNOPS) for development projects in the island state. The agreement was signed in New York on the sidelines of the 72nd Session of the UN General Assembly. Foreign minister Urbino José Gonçalves Botelho said the UNOPS support would cover project and contract management, procurement and infrastructure development to structure investor-friendly deals with a focus on social housing and renewable energy.

The Department of Energy has announced the selection of the 100MW Redstone solar thermal project and 100MW Kathu Solar Park as preferred bidders for its third concentrated solar power (CSP) independent power producer (IPP) bid round. Earlier, two preferred bidders from previous rounds – 100MW Xina Solar One, owned by Spain’s Abengoa, the Industrial Development Corporation (IDC), the Government Employees’ Pension Fund (GEPF) and Kaxu Community Trust, and 100MW Karoshoek Solar One, owned by Emvelo, IDC, ACS Cobra Energia, GEPF, Investec and the Karoshoek Community Trust – signed power purchase agreements, implementation agreements and direct agreements that will allow them to reach financial close.

The 5MW Outapi solar project in the northern Omusati region began operating on 1 July, local impact investor and project founder Camelthorn Business Ventures told African Energy. The project has been under development since 2012 and was selected by NamPower in 2015 as one of 14 preferred bidders in the country’s interim renewable energy feed-in tariff programme

The natural hot sulphuric springs at Hammam Pharaon in South Sinai governorate on the east coast of the Gulf of Suez were a popular tourist destination before security concerns scared off most international visitors. They may now represent the best indicator of a potential geothermal resource which will be studied by a joint venture agreed on 24 April by New and Renewable Energy Authority (NREA) chairman Dr Mohamed Sobky and Ganoub El Wadi Petroleum Holding Company chairman Sherif Soussa. In a telephone interview with African Energy, Sobky said the new company study a pilot project at Hammam Pharaon, where “there is an early indication that we can utilise some of the geothermal energy”.

South African miner Gold Fields is in the process of procuring an on-site independent power producer at its South Deep project to generate 50MW from solar photovoltaic (PV). The company is also exploring the possibility of adding a storage option to the facility. Gold Fields is the latest African miner to consider renewable energy options in the search for alternatives to costly diesel power and an unreliable supply from the grid. Expressions of interest were received on 6 November and successful bidders will be invited to respond to a request for proposals in the coming days. The winning proposal is expected to be announced early in 2016.

Minister of water and energy Basile Atangana Kouna and Nachtigal Hydro Power Company (NHPC) general manager Olivier Flambard signed a generation concession agreement on 20 April for the Nachtigal Amont hydroelectric facility. The agreement makes NHPC the concession holder for 35 years and grants the project company land rights on the project site. NHPC was established in 2016, and is owned by the government of Cameroon (30%), the International Finance Corporation (30%) and EDF International (40%).

The Ministry of Energy and Minerals has invited bids for construction of the Rufiji Hydropower Project at Stiegler’s Gorge in the Selous Game Reserve. The project will have an installed capacity of at least 2,100MW, with a minimum guaranteed annual firm energy of 5,920GWh. Bids are due by 16 October.According to the tender notice, the project comprises construction of a main dam 134 metres high and additional structures, with an expected total reservoir storage capacity of 34bcm.

Investec Asset Management announced on 30 November that a follow-on equity investment has been made by a consortium of investors in off-grid solar home system provider Mobisol. Investec, the World Bank Group’s International Finance Corporation and Dutch development bank FMO initially bought into the company in late 2016, supporting the growth of Mobisol’s operations in Tanzania and Rwanda as well as a move into Kenya. Berlin-headquartered Mobisol has raised more than $25m over the last six months in debt and equity.

Saudi developer Acwa Power on 29 June inaugurated its 120MW Khalladi wind farm at Jbel Sendouq, 30km from Tangiers. The completed project comprises 40 wind turbines and will produce 380GWh/yr, contributing to the reduction of more than 144,000 t/yr of CO2. Khalladi, which cost around $170m to build, is one of the first privately funded renewable energy projects in Morocco and has been developed under Law 13-09, which allows private producers to sell electricity directly to high-voltage clients.

Independent power producer Nyangani Renewable Energy has commissioned the company’s first solar mini-grid, Riverside Solar Power Station, with capacity to produce 2.5MW of electricity. Built at a cost of $3.5m in Mutoko district in south-eastern Zimbabwe, the solar farm will supply 4,700MWh/yr to the national grid. The first phase has been built on one quarter of the available land, and the entire project, which is divided into four phases, will eventually generate 10MW.

With progress reported on the Mphanda Nkuwa HEP project, Mozambique could become southern Africa’s second powerhouse within a decade if it can implement all the projects in its pipeline, to provide another 6,000MW of generation capacity. For this to happen Eskom must sign more power purchase agreements, unless the conditions are created for other major purchasers to come in.

Although resolving the energy crisis topped a nine-point plan to kickstart the economy outlined in his State of the Nation address, President Jacob Zuma announced little in the way of new policies. His 12 February speech reiterated the plan to rescue Eskom, confirming that the utility would receive R23bn ($2bn) from the government over the next fiscal year, and he announced that the gas independent power producer (IPP) procurement programme would begin in Q1 of this year. Head of the Department of Energy IPP Office Karen Breytenbach later confirmed that a request for information would be issued in March.