Page 15 - AfrElec Week 17 2021

AfrElec NEWS IN BRIEF AfrElec

Iraq, affirming that Egypt has an electricity be sourced from solar projects under South The Dakar powership will soon be
surplus. Africa’s renewable energy independent power switching from using heavy fuel oil, to gas,
Sisi noted that Egypt can export to each of producer procurement programme. contributing to the diversification of Senegal’s
these countries up to 1,000-2,000 megawatts energy sources.
of electricity based on their needs. MCB’s head of specialised finance Zaahir
Shaker said the ministry will choose an Sulliman said in a statement: “We are proud
international consultant for the power linkage INVESTMENT to be contributing towards Senegal’s universal
project with Cyprus at a capacity of 3,000 electrification goal and its transition from
MW. Senegal ramps up reliance on heavy fuel oil to LNG for its
The minister noted that Egypt carries electricity production.”
out power linkage projects with the aim of electrification efforts Sulliman added: “MCB is aware of its
turning the country into an international hub responsibility in the face of the climatic
of energy through linkage with Africa, Europe Funding of $60mn has been made available emergency” and that “financing Karpowership
and the Gulf countries. by Mauritius Commercial Bank, to support in Senegal is a first step in the right direction”.
electrification and liquefied natural gas (LNG) The International Energy Agency’s Africa
development in Senegal. Energy Outlook 2019 report stated that
The project finance loan provided by Senegal’s 2018 rate of electrification was 69%,
SOL AR Mauritius Commercial Bank (MCB) is the with only 42% in rural areas, compared with a
largest contribution to a total $140mn being 92% rate in urban areas.
Sasol and Air Liquide Invite made available to Karpowership, owner, Sustainable Energy for All in Africa
In March, international organisation
operator and developer of powerships, on
Bids to Procure 1,800 GWh which power plants are built. (SEforALL) announced receipt of a $1bn
The total loan, including MCB’s
grant from the United States Agency for
of Solar and Wind Per Year commitment, will be used by Karpowership International Development (USAID) to help
build up the electrification of health facilities
to run a 235-megawatt (MW) powership in
Sasol South Africa Limited (Sasol) and Air Dakar, Senegal, which will be responsible for in Africa.
Liquide Large Industries, South Africa, have approximately 15% of Senegal’s total supply of In a press release announcing the funding,
invited bids to procure 1,800 GWh per annum electricity. SEforALL explained that “off-grid renewable
of renewable energy (solar and wind) from This aligns with the Senegal government’s energy solutions can provide clean, reliable
independent power producers (IPPs) for 2014 introduction of its Plan Sénégal and cost-effective electricity to health centres
the first tranche of their ‘Renewable Energy Emergent, which lays out Senegal’s aim to in countries with significant electricity access
Implementation Programme’. increase its rate of electrification to 100% by gaps”, although hurdles still exist, such as a
Sasol and Air Liquide will procure power 2025, alongside improving access to electricity “lack of long-term financing and sustainable
with the envisaged allocation to Sasol (600 in rural areas, something the Sustainability business models, poor stakeholder and donor
GWh) and Air Liquide (1,200 GWh) per Development Goal (SDG) number seven of coordination, and limited enabling policies
annum. the United Nation’s charter on Sustainable that support sustainable service delivery”.
As per the tender document, the Development, also prioritises.
independent power producers will design,
finance, build, own, operate, and maintain
these renewable energy facilities.
Bidders with the relevant experience and
expertise can submit suitably developed
projects ready for development and
application for a generation license for
consideration by the buyers. The individual
projects must show a generation capacity of at
least 200 GWh per annum to be implemented
across South Africa with a targeted
commercial operations date from March 2023
to December 2024.
The power purchase agreement term
will be for 20 years from the commercial
operations date. However, the bidder may
provide tariffs for shorter terms of 10 or
15 years. The minimum local content
requirement for the tender is 40%, and bidders
with proven experience in delivering large
projects in South Africa will be preferred.
Recently, South Africa opened the
country’s fifth renewable energy bidding
window to procure 2.6 GW of clean energy
projects. Out of the 2.6 GW capacity, 1.6 GW
will be sourced from wind, and 1 GW will

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