ArcelorMittal South Africa, the subsidiary of ArcelorMittal Holdings, one of the world’s leading steel companies, aims to introduce renewable energy into its energy mix to “significantly reduce the price of electricity, improve its control of inputs and ensure a stable and secure supply of electricity for its operations”, says Kobus Verster, the managing director of ArcelorMittal South Africa.
With this in mind, the South African company has decided to enter into a Power Purchase Agreement (PPA) with one or more IPPs to build, own and operate several photovoltaic power plants at its six operational sites (Vanderbijlpark, Newcastle, Vereeniging, Pretoria, Thabazimbi and Saldanha). It is a long-term electricity supply contract between two parties (a producer and a buyer).
“The power plants in Vanderbijlpark will have a capacity of 10 MW and 100 MW, while the other sites will each have 10 MW plants. Land for the photovoltaic plants will be made available by ArcelorMittal South Africa for the PPIs,” says the company.
Applications are open until August 28, 2020
PPIs interested in the ArcelorMittal South Africa tender must send in their bids no later than 28 August 2020. Successful bidders will be required to carry out a number of tasks, including the completion of all pre-feasibility and bankability studies to confirm the viability of the financial and technical aspects, environmental impact assessment and other studies required for the implementation of the project.
The IPPs will also be responsible for applying for all governmental and legal permits and licenses required for the installation of the solar PV plants, securing the necessary financing for the development and implementation of the project, carrying out all engineering, procurement and construction works.
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Inès Magoum