SOLA has officially launched a first-of-its-kind 10 MW solar plant in the Northern Cape three months ahead of schedule, which provides clean energy to Amazon Web Services via the Eskom grid. Energy wheeling, a new model of private energy procurement, allows power to be generated and purchased in geographically distinct locations. The Adams Solar PV project will provide over 28 million kWh of clean electricity to Amazon Web Services annually.
This is the first operational large-scale solar PV wheeling project in South Africa, and the model is futuristic: it uses Eskom’s grid to connect private buyers and sellers together making the way for more choice and competition. It’s the first step forward in creating grid independence where private buyers and sellers of energy can trade with each other.
This means that the renewable energy plant will provide a low-carbon alternative to coal-fired power for a private offtaker (in this case Amazon Web Services) without needing to be geographically located at the site of use.
How? The solar PV plant comprises over 24 000 bifacial solar modules on single axis trackers, covering an area of 20 hectares. It is situated in the Northern Cape, where the solar resource is one of the best in the world. The solar PV facility tracks the sun throughout the day and absorbs irradiance from both the sky and reflected light from the ground. This design will see over 25 000 tons of carbon emissions being avoided annually – the equivalent of taking 5400 cars off of the road for a year.
This model could also help South Africa significantly in sticking to its carbon emission reductions targets whilst supporting economic growth and a just energy transition.
Amazon, like other large corporate consumers of energy, have committed to aggressive renewable energy procurement targets – in their case, 100% by 2025. But the successful provision of renewable energy can only be provided in an environment that supports it. Recently, the Department of Minerals and Energy, NERSA and Eskom have become supportive of renewable energy generation, which has allowed for the approval of renewable power plants such as this.
This is great news in light of the onslaught of load shedding in South Africa. Power generated from wheeling projects will increase the amount of IPPs and relieve the sole electricity provision burden on Eskom.
The support of renewable projects means the equal prioritisation of economic and social factors. The Adams project is more than 63% black owned, with investor Mahlako a Phahla Financial Services holding stakes in the project, who are committed to delivering returns for local black investors. SOLA is also 100% South African owned, including a 40% shareholding by black investor African Rainbow Energy and Power.
Renewable energy projects which take into account local development are able to develop South African skills and provide jobs. During construction, the Adams Solar Project created 167 jobs, 63% of them from the local surrounding area, and it will sustain permanent jobs for its lifetime in electrical maintenance, cleaning and security. Wooden waste generated during construction, including pallets and electrical cable drums, were donated to local furniture businesses and special skills schools, in order to further bolster the SMME contributions of the project.
Although the Adams Project is just the start of an energy wheeling and trading landscape in South Africa, it’s indicative of where the picture is heading: toward a modernised grid with renewable energy at its core. It also demonstrates the willingness of the government and the private sector to work together on solving South Africa’s electricity crisis.