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South Africa: Solar Plant to Sell Electricity
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Business Day (Johannesburg)
25 April 2008
Posted to the web 25 April 2008
Siseko Njobeni
Johannesburg
ISRAEL-based solar energy company MST Technology plans to enter SA's electricity generation industry.
It would build a turnkey solar power plant in Taung, North West, the company's SA representative, MK Malefane, said yesterday.
The company said the R48bn project would add 1000MW in the first year and 5000MW in all by the end of the fifth year.
SA faces an unprecedented electricity supply shortage, which is expected to continue until at least 2013.
Malefane said that from the seventh year power would be exported. It would cost the company € 4bn to set up the plant, with a capacity of 1000MW a day.
MST Germany would establish a joint venture with a South African entity, "By the seventh year we will be able to provide enough electricity for South Africa and still be able to export," Malefane said. Malefane said.
The company had made a proposal to the minerals and energy department, he said.
Department spokesman Bheki Khumalo said yesterday it was aware of MST's plans. "Our officials have requested a detailed proposal that will show project economics, viability and policy implications," he said.
Malefane said the company planned to set up another plant in Lesotho. "Earlier this month we signed an agreement with Lesotho's natural resources minister, Monyane Moleleki. The Lesotho plant will employ about 10000 workers."
National Energy Regulator of SA executive manager for electricity regulation Mbulelo Ncetezo said yesterday a company interested in power generation would have to negotiate a power purchase accord with power supplier Eskom.
"After that, they will have to come to us and we will do technical and financial analysis of the project to see if they are capable to doing what they say they can do," Ncetezo said.
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Eskom spokesman Andrew Etzinger was not aware of the discussions with the power supplier.
Meanwhile, Thomas Pearmain, an analyst at consultancy Global Insight, said the AES consortium's recent decision to walk away from the contract to build two open-cycle gas-turbine power stations in KwaZulu-Natal and Eastern Cape had raised questions about whether the project would be ready before the 2010 World Cup.
The minerals and energy department is embroiled in talks with a company, believed to be AES, to get the contract back on track. The projects are due to come on stream late next year.
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