Question NW3630 to the Minister of Mineral Resources and Energy
01 December 2023 - NW3630
Graham, Ms SJ to ask the Minister of Mineral Resources and Energy
(1) What (a) is the projected completion date of the Redstone Concentrated Solar Thermal Power Project that forms part of the SA Renewable Energy Independent Power Producer (REIPP) Procurement Programme, (b) is the projected lifespan of the project, (c) has been the total expenditure on the project to date and (d) total number of jobs (i) have been created in construction and other relevant fields and (ii) are local jobs; (2) whether the project will be completed within the R11,6 billion cost estimate; if not, why not; if so, what are the relevant details; (3) (a)(i) what are the details of South African funders who are involved in the project and (ii) to what extent are the specified funders involved and (b) what is Eskom’s share in the project; (4) whether the specified project falls within the Just Energy Transition Programme; if not, what is the position in this regard; if so, what are the relevant details? NW4817E
Reply:
It is important to note that Independent Power Producer (IPP) Projects procured under the Renewable Energy IPP Procurement Programme (REIPPPP) provide all the funds for the construction and operation of the power plant, and bear all the construction and site risks of the project – any delays or cost overruns are for the account of the IPP and not recoverable. At Commercial Close, IPPs further commit to a specified date to start generating power and are penalised if late.
(1)(a) and (b) the project is currently projected to reach Commercial Operation on 24th July 2024, as confirmed Eskom who has signed the Power Purchase Agreement with the Redstone Concentrated Solar Thermal Power Project Company. The project lifespan of the project will be 20- years in accordance with the Power Purchase Agreement signed by the project.
(1)(d)(i) and (ii) the Project is currently in construction. The project has committed a total of 4047 job years during construction and has achieved 11 396 job years to date (Note: A job Year refers to the equivalent of a full-time employment opportunity for one person for one year)
Of this, the breakdown of local jobs committed and achieved are as follows:
|
Element |
Obligation |
Achieved |
|
RSA Based Employees |
1456 |
2476 |
|
RSA- Based Employees who are citizens |
1086 |
2138 |
|
RSA- Based Employees who are black citizens |
501 |
2010 |
|
RSA- Based Employees who are skilled employees |
590 |
1686 |
|
RSA- Based Employees who are Skilled Black Citizens |
191 |
1253 |
|
RSA- Based Employees who are Citizens from Local Communities |
223 |
906 |
|
Employees who are people with disabilities |
0 |
0 |
|
Employees who are women |
0 |
225 |
|
Employees who are Youth |
0 |
701 |
|
Total |
4047 |
11 396 |
(1)(c) (2) and (3)(a), the detail of the requested information resides with the developer(s) or project owners. Its also important to note that the Department is bound by confidentiality undertakings with the Project. Therefore, its proposed that these questions be referred to the developer(s) or project owners.
3(b) Eskom is designated as the Buyer in terms of the Ministerial Determination issued in terms of section 34, of the Electricity Regulation Act, of the Electricity that will be generated by all procured IPP Projects and is not a shareholder in any IPP Project.
(4) The said project is part of procurement that fell within IRP 2010, therefore in line with Government policy.