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| The Government of South Africa, through the Ministry of Energy signed a Memorandum of Understanding with the Clinton Climate Initiative (CCI) in October 2009 to execute a pre-feasibility study exploring the potential of establishing a Solar Park within the. The initial investigation around the country confirmed Northern Cape Province as the best preferred area in terms of the solar irradiation. The concept of a solar park is similar to an industrial park, where bulk infrastructure, such as access to land, water supply, feeder lines to electricity transmission system, roads and support industries are provided to support the development of solar energy generating plants.
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| The prefeasibility study was completed and approved in May 2010 (Detailed study attached). All the work was carried out through the review of public data, as well as data supplied by the Department of Energy and Eskom. Several potential sites were identified in the Northern Cape Province, that is, 2 sites in Upington, 2 sites in Groblershoop, Prieska and De Aar. The results indicated that the conditions in Northern Cape, in particular Upington are ideal for solar parks with a potential of 5000 MW, which is a figure estimated to be reasonable in attracting significant investment. Further to the pre-feasibility analysis confirmed is that the Northern Cape has excellent and consistent sun, flat and sparsely-populated land, the ability to connect to the electricity grid at multiple points, water available from the Orange River, a developed highway system, and the Upington airport, making it an ideal location for solar deployment. Numerous regions of the province meet most, if not all, of the key criteria listed above. |
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In view of the positive results from the prefeasibility study, Cabinet took a decision in September 2010 that the Department should continue with a detailed feasibility study and further host an international Solar Investors Conference. Since the project required support from other governments that have a role in energy matters, six Inter-departmental Working Groups were established to look at various aspects of the project. The working groups were set up to contribute towards the feasibility study with the following focus areas: Site Infrastructure; Economic Development; Finance and Regulatory Framework; Solar Park Authority; Media & Investors Conference and Northern Cape Government. The following departments and organisations are represented across all the working groups: Economic Development Department (EDD), Department of Trade and Industry (DTI), Department of Environmental Affairs (DEA), Department of Public Enterprises (DPE), Department of Water Affairs (DWA), Department of Public Works (DPW), Department of Science and Technology (DST), National Treasury (NT), Northern Cape Government – Premier’s office and Department of Economic Development, //Khara Hais Municipality, Central Energy Fund (CEF), Development Bank of Southern Africa (DBSA), Eskom, IDC, etc.
The Solar Park Investors conference was held successfully on 28-29 October 2010 in Upington. More details about the conference can be found on the conference report. |
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As part of the commitment and efforts by Clinton Climate Initiative to assist the DoE to do further work in affirming the decision to proceed with feasibility study and present some firm analysis during the conference, CCI entered into a contract with FLUOR S.A (PTY) Limited to execute the Indicative Master Plan study on behalf of DoE.
The Indicative Master Plan (IMP) is one of the pre-requisite technical fatal flaws investigation required prior to undertaking a comprehensive feasibility study. The purpose of this IMP was to assist the department or government to make an informed decision in relation to whether the identified land is feasible for the project. The scope of services for the Indicative Master Plan Study included investigating the technical and economical feasibility of establishing one or more industrial parks dedicated to the deployment of solar technology, including PV, CPV and CSP. Flour started executing this work in August 2010 prior to the solar investors’ conference. A high level presentation was done at the investors’ conference to inform the investors of the status of the identified sites. Full details of the outcomes of the IMP can be found on the attached study report.
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In January 2011, the Minister requested CEF to lead the South African Government on the Solar Park programme feasibility study as well as engaging all stakeholders on the project. CEF is currently the implementing agent for the programme but the Department is managing and overseeing the process. Currently CEF and DoE are working together on executing the full bankable feasibility study.
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