- South Africa’s National Energy Regulator (NERSA), at its meeting held on 29 October 2024, approved IPP licence applications for energy storage operation (1), energy trading (4), energy import/export (1) and energy distribution (1).
Licence approval for operation of battery energy storage system
The Energy Regulator approved the issuance of a licence to AGV Projects (Pty) Ltd for the operation of a 177.50MWac/710MWh battery energy storage (BESS) facility. The Energy Regulator further approved the Capital Cost Recovery Charge Rate (CCRn) of R546.50/MWh (base year 1 April 2023) that is used to calculate the tariff in the Power Purchase Agreement (PPA) and noted the PPA between AGV and the National Transmission Company South Africa (NTCSA).
On 30 November 2023, the Minister of Mineral Resources and Energy announced that four bidders, Oasis Aggeneis, Magobe BESS, Oasis Mookodi and Oasis Nieuwehoop, as preferred bidders out of 17 bids received. Bids for the 153MW capacity allocated to the Garona Substation were still under evaluation. The preferred bidders applied for licences for the operation of generation facilities and were licensed on 27 June 2024. On 20 March 2024, the Minister announced AGV Projects (Pty) Ltd as the fifth preferred bidder with a contracted capacity of 153MW allocated to the Garona Substation, which means that the total contracted capacity for the battery energy storage project is 513MW.
Licence approvals for Electricity Trading Licence
The Energy Regulator approved four electricity trading licence applications for Discovery Green (Pty) Ltd, Green Electron Market (Pty) Ltd (GEM), CBI Electric Apollo (Pty) Ltd and GreenCo Power Services (Pty) Ltd.
Discovery Green concluded a 25-year Power Purchase Agreement (PPA) with Elu Energy and two customers, Hampton Court and Bruceheath Body Corporates. Elu Energy will sell the energy generated from the solar PV rooftop system to Discovery Green. Elu Energy Holdings (Pty) Ltd is the owner of two rooftops of solar PV generation facilities on the customer’s premises located in Edenvale, Ekurhuleni, Gauteng, registered in accordance with the NERSA registration prescribed procedure, having obtained the necessary connection agreements from the network service provider (the City of Ekurhuleni).
As a trader, GEM has entered into two separate agreements with a generator and a customer. The Generator Power Purchase Agreement (GPPA) is with the generator, Cetus Energy (Pty) Ltd, for 75MW solar PV from the Bela Bela Solar Park situated at Bela Bela in the Limpopo Province. The Electricity Supply Agreement (ESA) is with the off-taker, Evander Gold Mining, for 46MW of solar PV energy. GEM will use Eskom’s distribution network to wheel the electricity to Evander Gold Mining. GEM intends to sell the 29MW of excess energy to future customers. Cetus Energy (Pty) Ltd (‘Cetus Energy’) was registered to operate a 75MW solar PV generation facility by NERSA on 23 October 2023, in accordance with the Licensing Exemption and Registration Notice.
CBI Electric Apollo (Pty) Ltd concluded a 20-year PPA with Lumika Renewables Investments South Africa (Pty) Ltd (‘Lumika’) as the purchaser of 1.430MW from a solar PV generation facility located in Springs, Gauteng Province. The 1.430MW capacity bought by Apollo from Lumika will be sold to Fibertex South Africa over a period of three years, with an option to extend the term of the PPA.
GreenCo Power Services (Pty) Limited (‘GreenCo’) is a subsidiary of Africa GreenCo Group Limited in South Africa. GreenCo concluded a Generator Power Purchase Agreement (GPPA) with AMEA Power Rooidraai PV facility for a period of 25 years as a buyer of 85MW capacity. GreenCo also signed a Customer Power Purchase Agreement (CPPA) with Sibanye Stillwater for a period of two years, with an option for renewal after two years. The energy from the 85MW generation facility will be wheeled from the generator to Sibanye Stillwater using the Eskom Distribution network.
Import and Export licence approval
The Energy Regulator approved that GreenCo Power Services (Pty) Ltd be issued an import and export licence, subject to licence conditions imposed. GreenCo intends to trade electricity in the Southern Africa Power Pool (SAPP) market through its sister company, GreenCo Zambia, which is a member of the SAPP. GreenCo is also licensed as a trader by the Energy Regulation Board (ERB) of Zambia. Its membership with the SAPP allows it to import and export power from the SAPP, through the Eskom network, to South African customers.
GreenCo intends to import 65MW into South Africa from Tati Solar, which is situated in Botswana. GreenCo and Tati Solar have entered into a five-year Generator Power Purchase Agreement (GPPA). Tati Solar is currently building a 100MW solar PV generation facility in Botswana, and its intended commercial operation date is December 2026. The 65MW of energy imported by GreenCo aims to bring more capacity into the Republic of South Africa and will be sold to Sibanye Stillwater and GreenCo’s other future customers.
Licence to operate Distribution Facility approval
The Energy Regulator approved that Lion Thorn Solar (Pty) Ltd (‘Lion Thorn Solar’) be issued a registration certificate to operate a distribution facility located in Maquassi Hill Local Municipality, North West Province.
The distribution facility is for the operation of a 3.6km, 33kV overhead line from Leeuwbosch and Wildebeestkuil 20MW generation facilities to the point of connection at Lion Thorn 132/33kV Substation within the Maquassi Hill Local Municipality area. On 13 March 2023, NERSA issued registration certificates to Leeuwbosch PV Generation (Pty) Ltd and Wildebeestkuil PV Generation (Pty) Ltd to operate the generation facilities.
Author: Bryan Groenendaal
