Generation license issued for 140MW Ngonyama Solar project in South Africa

  • The Energy Regulator of South Africa, NERSA, has issued a generation license to the 140MW Ngonyama Solar project as the sixth preferred bidder of the Department of Mineral Resources and Energy’s (DMRE’s) Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window Six (BW6).
  • The six preferred bidders are listed in Table 1 below.

On 3 March 2023, Ngonyama Solar (RF) (Pty) Ltd was announced as the sixth preferred bidder, with a contracted capacity of 140 MW. This brings the total contracted capacity for BW6 to 1 000 MW for solar projects. Ngonyama Solar’s preferred bidder status letter was issued on 13 March 2023.

Ngonyama Solar applied for a generation licence in accordance with section 7 of the Electricity Regulation Act, 2006, which requires that no person may operate a generation facility without a licence issued by the Energy Regulator. NERSA analysed the application and found that it met all the licensing requirements. There were no objections received to the application.

Credit: NERSA

On 20 March 2023, South Africa’s the Department of Mineral Resources and Energy published an updated list of preferred bidders in REIPPPP Bid Window 6 (Additional) without a formal press release. The updated list now includes the Ngonyama Solar PV project (140MW) as a 6th preferred bidder. It has been revealed that the Ngonyama project was a special purpose vehicle (SPV) bought by ib vogt and the full allocation of shares in the SPV were transferred to them last year. According to CIPC records,  the two directors of the company are Sachin Jaichund Thakurpersad and Sefakor Agbesi, both are employed by ib vogt.

Related news: ib vogt raises EUR 350 million financing from Santander CIB

The Ngonyama project was previously part of the “29 Solar Development” cluster. According to the CSIR, who were commissioned to do the environmental impact assessment (EIA) in 2015, 29 Solar (Pty) Ltd (Reg. No. 2015/002969/07) proposed to construct and operate five 100 megawatt (MW) solar photovoltaic (PV) facilities and associated electrical infrastructure over nine farms close to Dealesville, in the Free State province.

Related news: South Africa’s REIPPPP is in tatters while energy crisis deepens, Mantashe must be held accountable

Author: Bryan Groenendaal

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