Hippo Valley Estates Limited, one of the largest producers of sugar, has announced plans to run three solar power plants with a combined output of 11,000 kilowatts, reports Chronicle.
In this regard, the company has initiated a process for the identification of potential partners for that giant development in the energy generation matrix. Currently, Hippo Valley generates 39MW of its power.
It is part of a wide trend where players in the private sector in agriculture, mining, manufacturing, and financial services establish solar plants for self-consumption and feeding extra energy into the national grid. The effort is in line with NDS1 for the 2021–2025 period, which stresses access to affordable and reliable energy.
This priority gives expression to the vision of the government and lends support to large-scale investments in such strategic sectors as mining, agriculture, tourism, and manufacturing.
Hippo Valley has issued a tender for the build, operation, and transfer of three solar PV plants. The Triangle Sugar Mill and Hippo Valley Sugar Mill plants will each be 5,000 KW grid-tied (local grid), while the Mwenezana Estate will feature a 1,500 KW hybrid system (grid-tied and islanded national grid).
The successful bidders will be required to finance tier-1 infrastructure-based establishment of the solar PV plants, building, operating and maintenance of the plants during the operational phase up to a period specified in the proposal, subject to amortization provisions. Moreover, the bidders will charge for the electricity supplied by the plants over a fixed period agreed upon, covering the fixed and variable costs of the tender.
Once the fixed capital costs have been fully amortized, ownership of the plants will be transferred to the respective hosting Tongaat Hulett operation. During the post-operational phase, the bidders will continue to operate and maintain the plants, levying a rate that allows them to recover only operating and maintenance costs.
