Page 15 - AfrElec Week 11 2023

AfrElec NEWS IN BRIEF AfrElec

this decade. It is also the first project on which hub in West Africa. seen a “rapid” rise in demand for domestic
JIBC has partnered with the EBRD since the The new $270mn facility sits on a 14,000 solar and battery storage installations, said
two institutions signed a memorandum of m2 plot, three times the size of the existing Dr Rethabile Melamu of the South African
understanding (MoU) in October 2022. terminal, and has the capacity to handle Photovoltaic Industry Association (SAPVIA).
1mn passengers a year, five times the current “There are equipment supply shortages
maximum, Airport World reports. in the market, and [this] led to increased
South Africa’s government country that a completely new international installation lead times due to installation
“This is the first time in the history of this
labour availability,” said Melamu.
launches request for airport terminal has been constructed, one renewable energy sources, alongside the
South Africa’s recent policy push towards
that has the latest technology and the highest
proposals to procure 513 compliance standards to make it more failings of the national power utility Eskom,
attractive to more international airlines,” Bio is has made an ideal climate for the battery
MW of battery energy quoted as saying. storage market to thrive.
The terminal was built by Summa, a
Solar provider Solana Energy says that
storage Turkish construction company with a South Africa is experiencing a residential
solar installation boom, with households
worldwide portfolio of marquee projects
South Africa’s Department of Mineral including airports, convention centres and importing over ZAR2.2bn ($120mn) worth of
Resources and Energy (DMRE) has launched hotels. solar photovoltaic (PV) panels in the first five
a process to procure 513 MW of battery Under the build, operate and transfer months of 2022 alone.
energy storage, News24 reports. (BOT) deal, Summa will now operate the According to SAPVIA, once this
According to the DMRE, five substation facility for 25 years, generating earnings to installation capacity is installed, it will surpass
sites have been identified in the Northern cover the outlay for construction, before over a decade of what the government has
Cape for the procurement of battery energy handing over ownership to the Sierra Leone been able to procure in solar energy.
storage systems (BESS) with a minimum of government.
four hours of storage capacity, or at least 2,052 The terminal, described as the central
MWh. part of Free Town’s International Airport Ghana assures IPPs it will
DMRE said potential bidders were renaissance, is powered by a 1.5 MW solar
officially invited to participate in the farm, is the first fully green airport terminal settle $1.3bn in arrears
procurement programme from Tuesday, in West Africa and is fully capable to
March 7. To access the documents relevant for accommodate eight widebody planes at once. As part of Ghana’s external debt
the bid, a prospective bidder is required to pay As part of efforts to develop the aviation restructuring process, the government has
a fee of ZAR25,000 (about $1,300) per project, sector following the twin shocks of the 2014 assured independent power producers (IPPs)
which is a standard practice in South Africa. ebola outbreak and the Covid-19 pandemic, that it is taking measures to settle arrears
The request for proposals (RFP) follows a the government has also revamped the with them that stood at $1.3bn as at the end
ministerial determination that was gazetted gateway’s 3.2km runway, taxiways and aprons, of January, the Business & Financial Times
for the battery storage on 25 September 2020, and has also modernised its communication reports.
writes News24. beacons. “In respect of the arrears, the government
“In line with the determination, the Battery will engage with IPPs under the ongoing
Energy Storage Independent Power Producer debt restructuring exercise, with a view
Procurement Programme has been designed South Africa experiences to restructuring the arrears in a manner
to facilitate the procurement of up to 513 consistent with the government’s debt targets
MW,” the DMRE said in a statement. solar panel sales boom as of 55% net present value (NPV) of debt-to-
Each bid response should be for the full GDP and external debt service ratio of 18% to
substation energy storage capacity, it added. power outages bite revenue by 2028, among others, to achieve a
“The department intends to select a single moderate risk of debt distress under the IMF-
preferred bidder in respect of each energy South Africa, which is experiencing WB Low-Income Countries (LIC) – Debt
storage substation.” crippling power shortages, has seen a sharp Sustainability Analysis (DSA) framework,” a
The deadline for submissions is July 5, the increase in solar power uptake, while new statement by the Ministry of Finance read as
DMRE said, and an online bidders conference tax incentives for businesses and households quoted by the report.
would be hosted for prospective bidders ahead are fuelling a surge in demand for solar PV, The move is aimed at enhancing Ghana’s
of the deadline. News24 reported on Friday 10 March. energy sector efficiency and as well as to
Finance Minister Enoch Godongwana prevent the accumulation of arrears in the
announced two tax incentives last week to future. The Institute for Economic Affairs
Sierra Leone opens encourage the rollout of rooftop solar PV. (IEA), a local think tank, had earlier called
for renegotiations of agreements with
According to News24, businesses will be
$270mn ‘green’ airport able to claim tax relief on 125% of the cost of IPPs, arguing that Ghana could save some
GHS12bn annually between now and 2026.
the renewable energy projects as of 1 March,
terminal, first built since 2023. This incentive will apply for two years. Programme (ERSP) which is aimed at
Under the Energy Sector Recovery
Households will be able to claim a tax relief
independence of 25% on solar equipment but not batteries providing a comprehensive roadmap to
and inverters. This incentive is capped at
restore and sustain Financial Viability in the
Sierra Leone’s President Julius Maada ZAR15,000 ($819) and is only valid for one energy sector through key strategic actions,
Bio this week opened the country’s first year from 1 March, 2023. the CWM will continue to make payments to
international airport terminal since its Since the end of the third quarter last year, the IPPs in order to improve liquidity in the
independence in 1961, a key milestone in a increasing levels of load-shedding – and now sector and help cover ongoing operational
drive to position the country as an aviation the risk of it escalating to Stages 7 and 8 – have expenses.

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