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South Africa

South Africa

Eskom hands Siemens 100MW deal

SOUTH AFRICA: Siemens has won the 105MW supply deal for utility Eskom's demonstration project at Sere, north of Cape Town.

The projects uses Siemens' 2.3MW turbine
The projects uses Siemens' 2.3MW turbine

The contract is for 46 2.3MW turbines with 108-metre rotors and 115-metre towers, and a five-year maintenance contract. Installation is set to begin in the second half of this year, with the aim of bringing the project online in early 2014.

Speaking about the deal, Siemens Wind Power CEO Felix Ferlemann said: "South Africa has outstanding conditions for the utilisation of wind energy and has set up a remarkable renewable energy programme with the independent power producer procurement programme."

Sere is Eskom's largest project. It has been on the project list for a number of years and was even shelved in 2009 because of a funding crisis. In 2010, the wind farm was resurrected by the World Bank with a $260 million loan from the International Bank for Reconstruction and Development.

The deal follows the South African government's approval of seven wind power projects totalling 563MW selected in the second round of its renewable energy independent power producer procurement programme (REIPPP).

Signing of the implementation agreements with preferred bidders by the Department of Energy (DoE) last month paves the way for the projects to secure power purchase agreements with state utility Eskom, allowing the projects to proceed to financial close.

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