paleisheuwel solar park - nersa · • holding all the rights and permits on 82.5 mw paleisheuwel...

Cape Town, 20 Feb 2014 PALEISHEUWEL PV - NERSA Public Hearing

Electra Capital

PALEISHEUWEL SOLAR PARK PUBLIC HEARING CAPE TOWN 20 FEBRUARY 2014 Western Cape PV Project – 82.5 MW


Electra Capital

PALEISHEUWEL SOLAR PARK • Located in the of Farm N.400,

Bergvaley, Cederberg Municipality, Sandveld Region, Western Cape Province

• Approximately 200 ha extension • Installation area is splitted into

the two zones so called area 1a and area 2d, divided by the secondary Road R365

Coordinates of the site: Latitude 32° 25' 23" S

Longitude 18° 44' 08" E

PALEISHEUWEL SOLAR PARK Location of the PV plant

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Electra Capital

Address: Cederberg Municipality, Sandveld Region, Western Cape Province

Total Area: around 200 ha

Generation type: Solar Photovoltaic Plant (PV)

Expected Commissioning: October 2015

Planned Capacity: 82.5 MWp DC

Estimated annual output: 143.1 GWh – average over 20 years

Specific Output: 1 784 kWh/kWp/year

CO2 Saved: 145 281 tons/year

Coal Saved: 38 685 tons/year

PALEISHEUWEL SOLAR PARK PV plant general technical information

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Electra Capital

PALEISHEUWEL SOLAR PARK Project Company Overview

ELECTRA CAPITAL PTY LTD – IPP RE PV 0077 001

• Established in 2011

• Involved in Renewables Energy, specific focus on PV Solar technology

• Holding all the rights and permits on 82.5 MW Paleisheuwel Solar Park, Western Cape

• As of today 100% owned by Enel Green Power RSA

• Preferred bidder in REIPPPP Round 3

Other Information:

• Registration no - 2011/101903/07

• Registered Office: 3 Atherstone Bower, 77 King Edward Road, Lombardy East, Johannesburg, South Africa

• Postal Address: 2005, Edenvale 1610

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Electra Capital

Permit Status EA Granted

Civil Aviation Granted Heritage Consent Granted

Consent for Subdivision of Agricultural Land In process

DMR Consent Granted LCC No Claims

Water Use License Granted for industrial use

Building Plan Approval To be applied

PALEISHEUWEL SOLAR PARK Permitting & Licensing

A detailed roadmap to Financial Closing has been submitted to the DoE at the end of January ‘14

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Electra Capital

EGP SPA

EGP SA BV 60%

RBH Resources Holdings (Pty) Ltd

100% 100 % Paleisheuwel

Community Trust

10% 100 %

Electra Capital (Pty) Ltd

40 %

Ned Bank

Funding

100%

Royal Bafokeng Holdings (Pty) Ltd

100%

Royal Bafokeng Nation

Development Trust 100%

EGP INTERNATIONAL BV

100%

Lisinfo245 Investments (Pty) Ltd 30%

100 %

100 %

100 %

Black ownership %

%

% Shareholding

Legend

South African ownership

0 %

0 %

0 %

100%

100%

100% 0%

0%

0% 100%

40%

TerniEnergia Projects (Pty) Ltd

EPC - O&M

Contractor

TerniEnergia SpA

80%

20 %

20% 80 %

PELE GREEN

ENERGY (Pty) Ltd

100%

PALEISHEUWEL SOLAR PARK Project Structure: SPV, EPC/O&M

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Electra Capital

• A subsidiary of Enel Green Power SpA, the Renewable company of Enel SpA the biggest Italian Electricity Group

• Established in 2013, specifically for participation in the Third Bid Submission Phase of the Department of Energy’s IPP-Renewable Procurement Programme

• Awarded in the Third Bid Submission Phase for 6 Renewable Projects (4 PV and 2 WIND) > 500 MW

• Participating in Upington PV Project (Northern Cape) awarded during the Second Submission Phase, currently under construction

• Focused on long term presence and complex business plan in South Africa

PALEISHEUWEL SOLAR PARK The Sponsor Companies – ENEL GREEN POWER SOUTH AFRICA BV

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Electra Capital

Italy&Europe

Capacity: 4,112 MW Production: 15.3 TWh

Technologies:

North America


Technologies:

Iberia&Latam


Technologies:

Capacity by technology Production by technology

Reported capacity as of September 30, 2013

Geo Hydro Wind Biomass Solar

2

Total = 8.7 GW

30%

9%

57%

3% 1%

Total = 28.7 TWh 39%

20%

38%

1% 2%

PALEISHEUWEL SOLAR PARK The Sponsor Companies – ENEL GREEN POWER

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Electra Capital

• The primary investment vehicle of the Royal Bafokeng Nation (RBN), a community of approximately 150 000 Tswana-speaking people in South Africa’s North West Province

• Established in 2006 as a community-based investment company

• Holding assets across the mining, financial services, infrastructure, oil and gas services and industrial sectors

• Looking for stable and long term growing investments

• Additional information at http://www.bafokeng.com/

PALEISHEUWEL SOLAR PARK The Sponsor Companies – Royal Bafokeng Holdings (Pty) Ltd (BEE partner)

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http://www.bafokeng.com/


Electra Capital

• Learn from Historical Lessons

Involve community from the beginning

Plan for worker demobilisation

• Compliance Is Threshold, Development Is Target

• Give The Communities Voice

• Recognise Existing Assets: Leverage Resources

• Legacy achieved only through Sustainability

PALEISHEUWEL SOLAR PARK Key Tenets of Impactful ED

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Electra Capital

Sub-Elements Compliance Obligations

Construction Jobs Operations Jobs Beyond

Compliance

South African Citizens 97,86%

2 680 pm equal to 223 jobs

15 540 pm equal to

1295 jobs

Youth and women – ensuring

representation via EPC contractors

Black Citizens 88,83% 2 042,3 pm

equal to 70 jobs

14 496 pm equal to

1208 jobs

On-site apprenticeship for unskilled labour

Skilled Black Citizens 75,79%

710 pm equal to 59 jobs

6 276 pm equal to 523 jobs

Demobilisation strategy that will focus on post-construction education (bursary)

Local Citizens 68,47% 466 pm equal to 39 jobs

12 281 pm equal to

1023 jobs

On-site training for O&M phase

(diploma programmes)

PALEISHEUWEL SOLAR PARK Job Creation

pm = person/ month

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Electra Capital

PALEISHEUWEL SOLAR PARK Local Content

Sub Elements

Compliance Obligations

Beyond Compliance

Key Components

49,09%

Early identification of key suppliers- WOV, QSEs, SMES, local suppliers

Local supplier Chain Support- formalisation & record keeping

Educate SMMEs & WOV about RE Opportunities

Marketing: Cross-project linkages despite different EPC/O&M

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Electra Capital

PALEISHEUWEL SOLAR PARK Preferential Procurement

Sub Elements

Compliance Obligations

Beyond Compliance

BBBEE 60% Early identification of key suppliers- WOV, QSEs, SMES, local suppliers

QSE 11,08% Local supplier Chain Support- formalisation & record keeping

Women Owned Vendors 5,13% Educate SMMEs & WOV about RE

Opportunities

Cross-project linkages despite different EPC/O&M

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Electra Capital

PALEISHEUWEL SOLAR PARK Management Control

Sub-Elements Compliance Obligations Beyond Compliance

Black People 100% 100% Black top management

Women 50% Skills development in key areas to grow IPP specialisation

Working with willing BEE PARTNERS

to become true IPPS

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Electra Capital

PALEISHEUWEL SOLAR PARK Enterprise Development

Sub-Elements Compliance Obligations

Beyond Compliance

Enterprise Development Contributions

0,6%

Invest in ED during construction to leverage project opportunities

Develop local industry to respond to the infrastructure needs of the sector

& beyond Connect local enterprises to national &

global value chains

Create community-based development professionals

Measure Impact, not just accounting for expenditure

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Electra Capital

PALEISHEUWEL SOLAR PARK Socio-Economic Development

Sub Elements

Compliance Obligations Beyond Compliance

Socio-Economic Development Contributions

1,5% First SED project to be implemented during construction phase to avoid delayed social

benefit Link skills development to enterprise

opportunities to ensure post-qualification demand

Measure Impact, not just accounting for expenditure

Build a local development institution with research, fund-raising and project management

capabilities

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Electra Capital

PALEISHEUWEL SOLAR PARK Socio Economic needs Assessment

75 Participants in focus groups

drawn randomly from various communities

7 Semi-Structured Interviews with leaders ranging from Black

Farmers’ Union to Govt. LED Officer

Community Priorities: 1. Public Transport

2. Communication services 3. Electricity

Community Voices: “Some of our kids haven’t seen the sea – which is only 30kms away…” Research participant

Results of Primary & Secondary Data

Analysis

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Electra Capital

PALEISHEUWEL SOLAR PARK Defining the Community

Key Beneficiary Communities

Paleisheuwel

Kruisfontein

Bo-Bergvlei Farm

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Electra Capital

PALEISHEUWEL SOLAR PARK Enterprise & Development Opportunities defined by the Community

Operations Phase

Small spaza shops would be a good addition to the local community

Local farmworkers can look at starting their own company to make the potato bags or even wash the potatoes

There is potential to establish satellite offices/campuses linked to educational institutions that could provide opportunities for local people

There is potential to develop renewable energy sources with locals and engage schools in other green activities

ICT Centre to provide computer access, interne and telephone services

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Electra Capital

PALEISHEUWEL SOLAR PARK EGP Flagship Training Programme

A training programme to develop technical skills in solar photovoltaic, solar PV installation and general business management

• Basics and advanced elements of electricity & solar photovoltaic

• How to set up and manage an enterprise

• Business plan of a solar PV installation

• Client relationship management

Key Outputs

• Trainees will be capable to deliver solar photovoltaic installations throughout South Africa.

• Graduates to set-up and manage small businesses individually or as small groups.

Long-term Vision

• EGP franchising network for rooftop installations

• Preferential procurement for EGP Programme Graduates

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Electra Capital

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BACK UP


Electra Capital

• The Italian electricity market incumbent, established in 1962

• One of the biggest European electricity player

• Presence in 40 countries

• Installed capacity 97,800 MW

• Annual production 296 TWh

• Employees 73,700

• Customers 61 million

• Capex 2013-17 27 Bln €

• EBITDA 16.7 Bln €

• Enel is listed on the Milan stock exchange

(~1.33 mln shareholders)

Data as of 31.12.2012

PALEISHEUWEL SOLAR PARK The Sponsor Companies – ENEL GROUP

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Electra Capital

PV Module Technology: Thin Film

Module Supplier/model: Sharp/NA - ExxxG5

Module output: 140/135/130/125 Wp

Inverter Supplier: Elettronica Santerno S.P.A.

Inverter Model: Santerno - SUNWAY TG Family

Mounting Structure: Fixed ground mounted 14 x 3 portrait tilted at 20°, oriented at 0°N

PALEISHEUWEL SOLAR PARK PV plant technology information

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Electra Capital

• The PV installation will cover the so call areas 1a/2d

• The connection to the Eskom grid will be made in the Eskom Paleisheuwel-Substation by the installation of “Paleisheuwel PV Plant 132 kV feeder bay”

• The step up 33/132kV of the voltage will occur in the MV/HV Substation of the customer located in the same farm of the facility

• In order to connect the Facility to the Eskom grid, there will be no need to build further power lines passing through other properties

PALEISHEUWEL

ESKOM Substation

PALEISHEUWEL PV SOLAR PARK

PALEISHEUWEL SOLAR PARK PV facility & grid connection

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Electra Capital

TIMING Construction Operations

Start date 01-Jul-14 01-Oct-15 Duration 15 months 20 years

End date 30-Sep-15 30-Sep-35

CAPEX SUMMARY AND DRAWDOWN PROFILE % of Total

Modules 37.6% BOP 57.6%

Land Acquisition 0.0% Development Costs 3.1% Connection - Eskom 0.5%

Connection - EPC 0.0% Scada (BOP - Movable) 0.1%

Engineering costs 0.1% Safety costs 0.9%

Socio Economic Development 0.1% TOTAL 100%

0%

20%

40%

60%

80%

100%

ZAR

cos

ts

Cumulative Capex Spend

PALEISHEUWEL SOLAR PARK Investment Information

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Electra Capital

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THANK YOU!

paleisheuwel solar park - nersa · • holding all the rights and permits on 82.5 mw paleisheuwel...

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