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RENEWABLE ENERGY | juwi Renewable Energies
JUWI
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A new focus on hybrid energy solutions across sub-Saharan Africa
RENEWABLE ENERGY | juwi Renewable Energies
juwi Renewable Energies South Africa is part of the international juwi group, one of the world’s leading companies in the renewable energy industry. The South African business is one of 15 subsidiaries in countries worldwide, after the original juwi group decided to expand out of its German roots into new international markets. Since adopting this strategy, the group has become adept at observing the ebb and flow of renewable energy sentiments in different jurisdictions and identifying the opportune moment to move into or out of a particular market. juwi registered in South Africa in 2010, when the stars were beginning to align in the then nascent renewable energy sector, with the announcement of the government’s inaugural renewable energy independent power purchase programme (REIPP). juwi’s arrival into the South African renewable energy market in 2010 allowed the subsidiary time to build its workforce over the course of 2011 ahead of its participation in the first round of solar projects under REIPPP in 2012 and 2013. Managing director Greg Austin joined juwi
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RENEWABLE ENERGY | juwi Renewable Energies
South Africa at the end of 2012 after it had
until financial close, at which point a financial
signed four engineering, procurement and
investor would step in.
construction (EPC) contracts for four solar projects comprising 35MW in Round 1 of
More recently the company has added solar
REIPPP.
project development to its business. This has allowed juwi to develop project rights
“When I joined we executed those projects,
alongside being able to build and operate
predominantly over the course of 2013,” he
a solar project together with the right
says. “Subsequent to that, a few things have
investment partner.
happened; we have diversified our business models, grown our business and been
“In parallel with that we’ve grown from a
successful in following rounds of the REIPPP.”
handful of people in 2012 to over 50 staff and we have further diversified the business
juwi’s initial strategy was to follow two core
to include commercial and industrial solar
business models in South Africa, the first of
power systems.
which was to provide EPC services to utilityscale solar plants. Meanwhile, juwi would also
“More recently our Cape Town office forms
act as a project developer for wind farms,
the hub for linking with off takers particularly
where it would effectively own projects up
in the mining sector for our cutting edge
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hybrid power solutions. Both of these
boom, building five utility scale solar plants
latter business models are B2B in nature
totalling 121MW to date, along with an
as opposed to the public procurement
extensive portfolio of both of wind and
programme represented by REIPP in South
solar projects in South Africa that are fully
Africa.”
developed and ready for bidding in the next
Reaping the benefits
REIPP procurement round.
The introduction of REIPPP was a genuine
After focusing most of its early efforts on
watershed moment in South Africa’s
securing projects in the first round of REIPPP,
renewable energy industry. In the six years
juwi secured an 86MW solar project in the
since the first round of the programme, over
third round, which was commissioned in mid-
6.1GW of renewable energy projects have
2016 and has been in operation for two years
been allocated over four rounds of bids,
now.
which has generated investment of around R194 billion (US$16 billion), none of which
“We have been successful in selling one
has come with any form of government
of our early wind farm projects that we
subsidy.
developed back in 2012,” says Austin. “It was awarded as a project in Round 4 of REIPPP
juwi has played a key role in this investment
which has been the round where we have had all the signing delays.”
RENEWABLE ENERGY | juwi Renewable Energies
“We have diversified our business models, grown our business and been suc After three successful rounds of
and secure PPA signatures for three solar
procurement, the fourth programme was
projects totalling 250MW in Round 4. juwi’s
effectively put on hold back in 2015 despite
strong position in the local market has been
significant capital investment and job
further underlined as a result.
creation within the South African renewables industry.
Hybrid energy solutions juwi has also developed its strategy around
Therefore, the last three years have proven
renewables in the wider sub-Saharan African
to be a frustrating period for juwi and many
region, providing ‘hybrid’ energy solutions to
renewable energy industry stakeholders
the mining industry under a B2B model as
who have had to wait patiently for the
part of a global focus for the juwi group.
final signatures on the Power Purchase Agreements (PPAs).
“Our global hybrid business initiative combines solar, wind, any thermal generator
However, the wait finally ended in April when
and storage, and we are focusing our efforts
South Africa’s energy minister Jeff Radebe
in this regard.”
signed the agreements for 27 PPAs worth a total of R56 billion, in a fresh sign of the
Austin reveals that the company is currently
government’s commitment to the renewables
working on a number of significant mining
industry.
projects in Africa, building on its experiences on an award-winning reference project. In
As a result, juwi has been able to reach
2016, juwi commissioned a 10.6MW solar
financial close on the wind farm project sale,
PV plus diesel plus battery storage hybrid
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ccessful in following rounds of the REIPPP.” Greg Austin, managing director system at the DeGrussa Mine, located around energy? For Austin, the key consideration is 900 km Northeast of Perth in Western
ultimately cost. “If you look at mines, they can
Australia.
either be grid-connected, entirely off-grid or they can be on a weak-grid.
The US$40 million project remains two years later as the largest integrated off-grid solar
“Typically, you would see that most mines,
and battery storage facility globally, and fully
even if they are connected to the grid, have
integrates with the existing 19MW diesel-
substantial thermal power plants on site
fired power station at the site, providing
which will typically be diesel or heavy fuel oil-
an additional source of power and energy
based. The cost of that energy is really high
storage with related cost and carbon
compared to solar. From a price perspective
emissions reductions.
solar is a no-brainer, assuming that a suitably long-term PPA can be agreed between the
Having received extremely positive
involved parties.
feedback from the mine’s operator Sandfire Resources throughout the two years since
“When you put these things side-by-side
its installation, juwi believes that solar hybrid
there are price offerings under a PPA
facilities are fast becoming the benchmark
environment that a thermal power plant
for reliable and sustainable energy supply to
simply cannot complete with.”
remotely located mines. In addition to low costs, the reliability and But why exactly are these hybrid plants so
quality of the energy supplied are another
valuable in terms of providing reliable off-grid key draw for mining companies considering
RENEWABLE ENERGY | juwi Renewable Energies
Resource Global Network hybrid systems for remote mines. This is something that juwi is attempting to promote via the success of the DeGrussa mine. “The reliability and the quality of the hybrid system is as good, if not better than that from the standalone diesel system,” according to Peter Gordon the electrical superintendent at Sandfire Resources. “Those are the first points we are trying to hit. Once you achieve that and reference it, that’s when it makes a mark in everybody’s minds,” says Austin. “Whenever you talk to miners about power and its relative costs and reliability, everyone is looking at solar, so that’s quite an exciting place for us to be in right now.” Hybrid facilities are particularly compelling for many mining operators across subSaharan Africa because of the increased number of off-grid large-scale mines. Typically, off-grid connections are much more expensive than grid-connected mines in Africa and are often a much poorer quality. Not only that, but according to Austin: “We anticipate the introduction of our hybrid solutions as a key enabler of new investments into proven mining resources that otherwise would not be bankable with the costs of providing a pure thermal power solution in some locations.” Therefore, the continent is presenting fertile ground for juwi’s low cost, high quality and
RENEWABLE ENERGY | juwi Renewable Energies
“Whenever you talk to miners abou everyone is looking at solar, so that’s q
reliable hybrid energy systems, as off-grid
Having said that there is still a robust
mine operators look for reductions in and
industry which has had to really sharpen its
alternatives to their current electricity tariffs.
pencils and find a way to deliver value for its
South Africa’s resurgent renewables sector
customers.” Now it seems that brighter days are on the
Returning to the current state of play in
horizon once again with the announcement
South Africa’s renewable energy industry,
of the fifth round of REIPPP, which will
Austin admits that the sector has weathered
be launched this year for over 1.8GW of
a storm in recent years because of the delays
renewable energy projects.
in the final project sign off in Round 4 of the REIPPP.
This programme will provide a major investment boost to the renewables industry,
“The entire fabric of the market has had
which is already benefitting from rapidly
a massive setback because of the delays.
falling costs across the board, particularly in
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ut power and its relative costs and reliability, quite an exciting place for us to be in right now.”
the commercial and industrial solar sector.
has grown from having the capacity to build 35MW in around a year and a half, to being
In addition, business conditions in South
able to build 250MW in that same timeframe.
Africa have also improved as a result of political changes earlier this year, which
“Looking back over the last five years juwi has
is further contributing to a better outlook
realised or secured 500MW of solar and wind
for juwi and its fellow renewable energy
projects in South Africa. In terms of the sub-
developers.
Saharan business, we are bullish about the hybrid prospects and are aiming to achieve
Reflecting on juwi’s development in South
deployment of around 100MW by 2021.”
Africa, Austin tells RGN that the company
ab j
Published by Anderson Murray Media Ltd
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