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African Energy Resources registers multiple projects for SA’s baseload IPP programme

African Energy Resources has responded to South Africa’s Department of Energy has request for registration (RFR) to developers of projects for their 2 500 MW coal baseload IPP procurement programme.

This programme seeks to secure up to 2,500MW of coal-fired baseload independent power projects, and is one of the core initiatives under the Policy Adjusted Integrated Resource Plan of 2010.

“The 2,500MW IPP procurement is separate from any coal-fired power project that is undertaken directly by Eskom, South Africa’s power utility, and thus represents a unique opportunity for independent power producers in the region,” African Energy said in a statement.

South Africa’s baseload IPP programme

The procurement programme is structured to consist of separate Bid Submission Phases in which Bid Responses shall be submitted to the Department of Energy on specified Bid Submission Dates. Projects submitted in the first Bid Submission Phase must be capable of commercial operation by the end of June 2019, and have a maximum contracted capacity of 600MW.

Cross Border Projects in which the facility is situated outside South Africa are permissible. Bidders who register their projects by the deadline of 25th July will be invited to meetings with the Department of Energy and/or other relevant government stakeholders to discuss their project.

African Energy’s interest in the baseload IPP programme

In response to the RFR, African Energy has been involved in the submission of four registrations under the RFR. The company has delineated total resources of approximately 8.7 billion tonnes of in-situ coal in its Botswana projects. Technical studies undertaken to date have indicated the suitability of the coal at the Sese deposit and the Mmamantswe deposit to be used for power generation.

African Energy and its lead development partner, ACWA Power International, are seeking to develop one or more 300MW power projects at the Sese deposit. African Energy has also been in discussions with several groups in relati on to opportunities to jointly develop power projects at Mmamantsw.

Registration of multiple projects

African Energy and ACWA Power International have submitted a joint registration for a 300MW power project at Sese. This project will be similar in scale and design to the project that has been submitted as an Expression of Interest for Botswana’s own 300 MW Greenfield IPP.

African Energy has also submitted three separate registrations for 600 MW projects at Mmamantswe, each registration as part of a different consortium. The Mmamantswe project lies in Botswana but is only 20km from the South African border. Mmamantswe has an approved EIA for up to 10mtpa of coal mining and up to 2 000 MW of electricity generation.

An 8 GL per year water source suitable for >1 500 MW has also been identified and registered. Eskom’s System Operations and Planning Department completed a Generation and Integration Feasibility Report on this project in 2009. A Letter of Support from the Ministry of Minerals Energy and Water Resources in Botswana accompanied each registration.

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