Irish renewable energy company Mainstream, in conjunction with a local wind farm developer Genesis Eco-Energy, plan to build wind farms in South Africa. The project, expected to cost R11 billion, would generate 500 MW by 2014.
Located in the Eastern, Northern, and Western Capes, Mainstream chief development officer Torben Andersen said that if appropriate renewable energy feed-in tariffs (Refits) are incorporated along with regulatory framework, investment will grow within the sector. The National Energy Regulator of SA (Nersa) is set to announce the long-awaited renewable energy feed-in tariffs at the end of this month. He added that in order to capitalize on the tariffs to provide sustainability, Refits would need to be higher than those earlier proposed by Nersa in December. The regulator said feed-in tariffs for wind energy in the period between last year and 2013 would range between 65c/KWh and 75c/KWh. A feed-in tariff of about R1/KWh would stimulate investment, he said.
Andersen said construction of the first of these projects – a 30 MW wind farm in Jeffreys Bay – would commence next year and would be fully operational early in 2011. The project would comprise 15 wind turbines, each generating at least 2 MW, the companies said. While the companies await Nersa’s announcement, Mainstrean and Genesis would have to conclude a power purchase agreement with state utility Eskom for the transmission of the power from the plants since Eskom is the only buyer of electricity produced by IPPs.
Andersen said the companies would wait for Nersa’s announcement. The companies have said that access to Eskom’s grid and the ability to sell power to the grid "without obstruction" are challenges facing the project.
The Darling wind farm in the Western Cape is currently the only commercial wind farm in the country.