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With the size of utility scale solar projects in the nation having ballooned, the lessons learned from South Africa’s first big solar field continue to help developers roll out PV as a key energy source.
As South African renewables continue to mature, the RustMo1 Solar Project, the nations first utility scale PV site, is a testament to the transformative journey of the industry over the past decade. The 7 MW solar farm, commissioned under the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP), has been operational for 10 years. The first utility scale solar plant built and operated by Juwi Renewable Energies in South Africa, RustMo provides valuable insight into the evolving landscape of South African large scale solar.
In the early rounds of the REIPPPP, high tariffs for utility scale renewables reflected the unproven nature of the program. RustMo developer Momentous Energy benefited from a tariff higher than the rate paid by national utility Eskom as the government sought to instil confidence in clean energy. Over the last decade, technological advances and cheaper debt – which reflected falling investment risk – have transformed utility scale solar from the most expensive to the cheapest clean energy source.
Simultaneously, South Africas renewables sector saw increased competition. Developers responded by co-locating projects to optimize margins and are navigating regulatory complexity as they gain experience in the nation, and form relationships with the authorities.
Regulatory transformation
Major regulatory changes have unlocked the potential of large scale renewables. The removal of licensing caps; grid code developments that were initiated, in part, during RustMo’s development, and with the support of Juwi and Momentous; and streamlined permitting have created a more favourable environment for developers. The South African Department of Environmental Affairs, for example, stimulated the market by introducing revised regulation, making permitting for large projects at low-to-medium sensitivity sites more efficient and cost-effective.
Project sizes have ballooned since 2014, with RustMos 7 MW generation capacity reflecting the 75 MW cap on the early bidding rounds of REIPPPP. That restriction has risen to 240 MW in bid window seven as developers target economies of scale, and has reduced the competitiveness of small REIPPPP sites.
Challenges
Aside from delayed REIPPPP bid windows, a lack of grid capacity, and high local content requirements hindering solar developers, a lesser known challenge is that negotiating agreements for projects on agricultural land has become more intricate as landowners seek optimal terms. Farmers who hold out for the best terms can render planned projects unbankable.
The arrival of engineering, procurement, and construction companies without a track record in South Africa threatens project quality and could complicate issue resolution as projects age and come online. A broader concern is the negative impact on solar of setbacks from less reputable companies. Ongoing support for utility scale solar depends on the technology maintaining a positive reputation.
Operational realities
The operation and maintenance (O&M) of solar plants is where “the rubber hits the road,” and the RustMo project has achieved a performance ratio above the guaranteed rate of 78% over the past decade. Plant availability has varied between 97% and 99.99%. This is the result of meticulous maintenance regimes, strategic planning, high standards of quality, and a robust support group of O&M contractors and owners, with Juwi’s O&M Black Economic Empowerment partner Reatile Renewables jointly owning the project with Momentous.
O&M practice at RustMo sheds light on the challenges and opportunities inherent in maintaining a solar project in South Africa over a decade.
From planning and time management to effective team collaboration, a well-informed and equipped team is critical to navigate the intricacies of large scale solar operations. Sticking to maintenance regimes and comprehensive planning – including having a facility operating plan – have been integral in ensuring seamless operation of the plant. Failure to do planned maintenance can have cascading effects, particularly for projects in remote areas where maintenance can be more challenging.
The RustMo support group – a 24-hour control room in Greece; Cape Town back-office support; and sub-contractors – are integral to O&M, particularly during periods of heightened uncertainty. The availability of essential information, guidelines, and tools enhance the teams ability to address challenges proactively. |
