Executive Summary 09 August 2023
EnergSA (Pty) Ltd
EnergSA (Pty) Ltd proposes the design and installation of a 100 MWp Solar Generation System for Agricultural purposes (AgriPV) in the Inxuba Yethemba Local Municipality in the Eastern Cape Province of South Africa with a 30 MWh battery storage back up. Energsa will thereby provide decentralized, reliable energy, jobs within the community, and the cultivation of specific crops on the land. While Energsa has secured a PPA, and the suitable land, the company seeks funding for the development of the project, and the feasibility studies of about € 150,000. The total required funding is about € 150 Mio (approx R 3 billion), including the material and equipment of the plant. The following provides a short overview of the financial, technical, and project related details.
EnergSA (Pty) Ltd is striving to spearhead the development of Agricultural Photovoltaic systems (Agri PV) in cooperation with our German Engineering team. In doing so, we will harvest the energy of the sun and different crops simultaneously without wasting precious land. Our objective is to construct and implement our projects with the best technology in the sector and choose our partners and associates well. Our projects developments foundation will be based on Strong feasibility studies showing high profitability, a success tailored model indicating adequate future cash flows and risk mitigation.
While we enable the local community to generate its own independent power, we will also generate work on the crop fields and within the technical realm of the solar plant. Our company is planning to train workers accordingly and transfer technical skills.
Our project is a 100 MWp Solar Power Generation Plant based on AgriPV. While converting the sunlight into electricity, it is built in a way that crops of spinach, cabbage, and onions will be cultivated underneath the PV construction. Modules will be placed at a specified height and at specified distances to optimize the yield of the crops, while maximizing the harvest of energy at the same time. Beyond the benefit of double use of land, the advantages are inherit in soil protection, crop protection from burning, and minimization of water consumption. The layout will be carried out by our specialized engineers for AgriPV from Germany.
Energy Background in South Africa
South Africa is currently facing a severe energy crisis. Having relied on old transmission lines and a monopoly of energy distribution, the economic costs are high today for unreliable energy sources, with power failures and load shedding being a daily struggle for the country’s infrastructure and business. Thus, there is a huge demand for independent power producers of solar, hydro- and wind energy. The government is supporting this development towards Renewable energy by having removed much of its red tape for speedy development and construction of power generation plants by independent power producers and developers.
Project Detail
Project Site and Location
The project is located within the Inxuba Yethemba Local Municipality in the Eastern Cape province through Municipal Power Purchase Agreement. Inxuba Yethemba Local Municipality is a Category B municipality situated in the Chris Hani District. It is approximately 240km north of Nelson Mandela Metropolitan Municipality. It is one of six municipalities in the district, making up a third of its geographical area.
Currently, there are two land pieces provided by the government suitable for the set up of the plant. Arrangements are currently under way.
Project Capacity and Size
This 100 MW project is an Agri PV solar system that is located adjacent to municipal substations for simple grid connection. It also includes a 30 MWh battery storage facility. It will be put into service in several phases.
Project Investment and Operational Model
The project will be supplying the power generated to Inxuba Yethemba Local Municipality based on the signed Power Purchase Agreement at R 2.05 per KWh rate that will be increased by the approved annual rate of the regulating body which is Nersa. Any additional energy generated would be wheeled on the network to other users for purchase. The project is guaranteed by the following key operational elements and mechanisms:
1. We will install smart electrical prepaid meters in the whole community of Inxuba Yethemba Local Municipality as part of the project and will be managed by ourselves as the developer to manage and control tempering and leakages.
2. All the sales will be through our Trust Bank account / (Escrow Account) which will also be managed by us as the Developers and payments will be made once per month to the Municipality and to us as the Developer.
3. We will run the project for a term of twenty-five (25) years with the potential of an extension on municipal property. The National Treasury or the Municipal Balance Sheet will not provide any guarantees for the project; instead, the two aforementioned mechanisms will do so.