First South African Order Received To Build, Own And Operate Up To 30 Gigawatts Of Green Electricity
First South African Order Received To Build, Own And Operate Up To 30 Gigawatts Of Green Electricity. BioPower Operations Corporation as HYFI Corp., announced that its Joint Venture with POWGEX ENERGY SOUTH AFRICA, POWGEX-HYFI, has secured its first significant green electricity generating facilities order for up to 30 Gigawatts (GW). The venture is invited to build, own and operate an initial 1 GW facility with the potential to expand to up to 30 GW of solar power in the populous Municipalities of Mpumalanga, South Africa.
It is contemplated that project installations for the first 1 GW will begin in Q1 2024 with a total project cost of $2.5B, with the main costs attributed to solar pv panels, battery storage, EPC & O&M. A market leading solar pv and battery storage OEM has been selected for the first 1 GW of deliverables to be provided and installed. POWGEX-HYFI is presently in discussions with a world leading EPC and O&M provider for installation of the project deliverables.
Mpumalanga,is a prosperous province situated to the east of Johannesburg and Pretoria. This is the first of what is expected to be multiple orders from municipalities looking to contract directly with POWGEX-HYFI and establish long-term Power Purchase Agreements (PPAs). The Municipalities in Mpumalanga Province have a vibrant economic region with activities in manufacturing, mining, construction, finance and power generation.
POWGEX-HYFI has been invited to provide an initial 1 GW Solar Power Plant, with future expansion between 5GW to 30GW within the larger Mpumalanga region. Total transmission capacity in Mpumalanga Province is close to 22GW in Substation and Transformer Capacity, but only 6.5GW of readily available generating capacity. Adding additional capacity can comfortably be accommodated within the current infrastructure and in time up to 30GW could be added on the basis of Eskom’s Grid Connection Capacity Assessment.
The scale of the challenge for renewable power investment in South Africa was highlighted in a government-backed report: Net zero in South Africa – It all hinges on Renewables. South Africa National Business Initiative, September 2022. “By 2050, at least 190 gigawatts (GW) of renewables need to be deployed to fully decarbonise the power sector. Capturing the opportunity presented by the Green Hydrogen economy (a national aim) requires potentially up to 170-200 GW of additional dedicated renewables capacity. That means South Africa will need to build ~6-7 GW of renewables every year for the next three decades for the power system alone. The annual renewables build rate would further increase if the Green H2 opportunity is pursued.”
