South Africa’s state-owned Industrial Development Corp. (IDC) has announced plans to partner with independent power producers (IPPs) to work on renewable power projects.
The IDC has been approached to participate in a 500-MW wind farm in the Western Cape and is considering a R1-billion participation in Eskom’s R6 billion concentrating solar power project that could be built in the Northern Cape. In addition, the company is already participating with a smaller-scale solar energy pilot project and has approved a R74-million investment for a 7.5-MW wood biomass IPP in the Western Cape. It has also set aside R5 million for a project to capture and flare methane gas at one of the largest pig farms in Mpumalanga.
Two power plants are under discussion with one located in the Eastern Cape and the other in KwaZulu-Natal as negotiations with a consortium led by Suez Energy began last year. IDC said it was being courted by several IPPs either bidding to supply South Africa through Eskom’s Multi-site Baseload IPP tender or under the utilities Medium-Term Power Purchase. However, both processes have been delayed until the National Energy Regulator of South Africa (Nersa) finalizes the IPP cost recovery rules.