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South African energy news

REH commissions its third hydro power plant South Africa

Stortemelk Hydro, the third hydro power plant developed in South Africa by hydro-power developer, owner and operator, Renewable Energy Holdings (Pty) Ltd (‘REH’) commenced commercial operations on 29 July 2016. The combined capacity of the REH’s portfolio of hydro power plants in South Africa is 11MW with an annual generation in excess of 70GWh.
The 4.5MW, R 190 million project, which was awarded Preferred Bidder status under Bid Window 2 of the South African Government’s Renewable Energy Independent Power Producer (REIPP) Procurement Programme, is located near Clarens in the Free State province of South Africa.

Similar to the two hydro-power plants previously developed by REH (formerly known as NuPlanet) for Bethlehem Hydro Pty Ltd, the project is situated on the Ash River and utilizes the outflow from the Lesotho Highlands Water Project. The contractors to the Project were split between the ‘water to wire’ turbine, generator and switchgear contractors, Andritz Hydro GmbH of Austria and Indar Electrical SL of Spain, Aurecon South Africa Pty Ltd acting as the EPCM Contractor, whilst the civil works contract was awarded to Eigenbau Pty Ltd.

The capital cost of R 186 million (USD18 million) was financed with project finance debt from Rand Merchant Bank, while equity financing was provided by Renewable Energy Holdings, the Mertech Group and an independent broad based black economic empowerment (BBBEE) entity. Stortemelk Hydro is one of the few IPPs in REIPPP which is 100% South African owned.

The project employed some 50 people during its 18-month construction period. The operations and maintenance contractor, REH Operations and Maintenance Pty Ltd, is also operating the Bethlehem Hydro power projects.

Additional information: More info on Stortemelk hydro station
News date: 10/08/2016

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South Africa to add 6.3 GW to future REIPPPP tenders (16/04/2015)
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