Coega Welcomes The Signing Of IPP Contracts

The Coega Development Corporation (CDC) welcomes government’s commitment to clean energy, which forms part of the broadened South African energy mix.

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The announcement by the Department of Energy follows the signing of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) contracts from Bid Windows 3.5 and 4, worth fifty six billion rands (R56 bn) by Minister Jeff Radebe recently.

Cumulatively, the twenty-seven (27) projects are expected to add 2 300 MW of electricity to the national grid over the next five years. “With various localization and socioeconomic impact potential linked to them,” highlights Sandisiwe Ncemane, CDC Project Development Manager – Energy Projects.

The CDC as a state-owned entity adopted an energy approach that is aligned to the prevailing vision for an integrated energy transition (including of electricity, liquid fuels and natural gas) for SA’s economy in terms of energy security, diversity and socioeconomic development. The organization has an integrated approach consisting of five (5) focus areas, namely, power generation, manufacturing, enablers, centre of excellence and operations & maintenance.

Currently at the Coega Special Economic Zone (SEZ) and linked to the renewable energy component manufacturing, is a wind tower manufacturing facility that has supplied wind towers to the various wind REIPPP projects within the region.

To complement the logistics movement of the wind blades, the CDC has invested over R9 million in a lay down area for normal and abnormal cargo. The 12 hectares of land in Zone 1 of the Coega SEZ located on the boundary between the Port of Ngqura and the Coega SEZ has played an integral role in the regional connection of wind power.

Cementing the Coega SEZs status as a hub for mega energy projects, is the Dedisa Peaking Power Plant – R3.5 billion investment with a capacity of 342MW. Further evidence of Coega’s traction as one of the leading investment hubs, the SEZ is allocated 1000MW in the Independent Power Producer (IPP) Gas to Power Programme. As such, the organization is driving an Environmental Impact Assessment for the Gas to Power Plant.

Appreciating the diverse nature of the energy mix, the CDC is working closely with various entities with a focus on advancing readiness for nuclear localization. “This is to ensure that the CDC continues to build momentum related to the national energy transition in order remain relevant to the developmental trajectory of South Africa,” concludes Sandisiwe.

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