In addition to the two new bidders - Kathu Solar Park and Redstone Solar Thermal Power, which will both build 100MW capacity - there are five other concentrated solar power projects, including one belonging to Eskom, that have been commissioned.
The bidding by independent power producers is done competitively.
Redstone said on Thursday, 8 January, it had provided the lowest tariff bid to date from any concentrated solar power project in the country. It did not disclose the cost at which it will supply power, but renewable energy remains substantially more expensive than coal-fired energy in SA.
Concentrated solar thermal power is able to store solar power generated during daylight hours.
Redstone said the project would be the first of its kind in Africa. "The project uses molten salt energy storage technology in a tower configuration with the capability to support SA's demand for energy both day and night.
"The 100MW project with 12 hours of full-load energy storage will be able to reliably deliver a stable electricity supply to more than 200,000 South African homes during peak demand periods, even well after the sun has set."
However, like several other renewable projects that formed part of the third-round window, the Redstone project has not yet reached financial close. It has been delayed by Eskom, which has not been able to easily connect all successful bidders to the grid.
Previous rounds of the renewable energy independent power producer procurement process have been a success, with 21 renewable projects, which will provide 1,076MW, connected to the grid.
The renewable programme is seen as important for closing the power gap, with energy supply in SA highly constrained.
But the third round has run into problems with a delay in undertakings by Eskom to provide grid connection and a sudden rise in prices for the service.
This has had a knock-on effect on the finalising of the contracting necessary to achieving financial close.
Source: Business Day
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