BPC adds more solar generation
Mbongeni Mguni | Tuesday August 20, 2024 10:15
The power stations, known as solar photovoltaic (PV) will be grid-tied, meaning their generation will feed into the national grid for supply around the country. The selected firms will develop and operate the power stations, selling the electricity to the BPC under 25-year contracts known as Power Purchase Agreements (PPAs). “This has been a very long journey that started in November 2018 when the Corporation floated an international open tender for the development, financing, construction, commissioning, ownership, operations, and maintenance of these solar PV power plants,” said BPC CEO, David Kgoboko.
The Corporation wanted 12 plants, but only identified one firm for the development and construction of two sites, being Bobonong and Shakawe, which are currently operational and supplying four megawatts to the grid. “The Corporation re-tendered for the remaining 10 sites in February 2020 and managed to award three sites in July 2021. “Unfortunately, the developer was unable to achieve financial close of all three sites. Two tenders were floated in July and September of 2023 for seven and three sites respectively,” the CEO said. The development of the small-scale solar plants was reserved for wholly citizen-owned companies, in line with government’s drive for citizen economic empowerment, he added.
On Thursday, at a ceremony witnessed by the Vice President, Slumber Tsogwane, the BPC signed PPAs with six citizen-owned companies for the development of eight solar PV projects. “The BPC will play its role in supporting the project sponsors to deliver the projects as envisaged in the PPAs,” Kgoboko said. The Corporation had a busy week, as it signed a PPA last Monday for the development of the 100MW Jwaneng Solar Photovoltaic plant, the country’s second utility-scale renewable energy project. China Harbour Engineering in partnership with China Water and Electric Company will work with local investors on the project that is due for commissioning in the second quarter of 2026.
The Chinese consortium will finance, build, and maintain the plant, selling the electricity to the BPC under a 25-year contract. The deal also involves the construction of a 132-kilovolt substation and associated transmission lines to connect the plant to the national grid. The various renewable energy plants are being developed under the revised Integrated Resource Plan, a 20-year blueprint for the electricity government will self-build or procure around the country. The solar plants will push the country towards eliminating the need for daytime electricity imports. Government is also working with the World Bank to develop two 50MW battery storage systems, which will support the Jwaneng and Mmadinare utility-scale projects, helping to power night-time supply.