South Africa’s largest Independent Power Plant (IPP), the 670 MW Avon open-cycle gas turbine plant is now in full commercial operation. Together with its sister power plant, the 335 MW Dedisa IPP, the 4-unit Avon power project was initiated by South Africa’s Department of Energy and has been realised on a on a Build, Own and Operate (BOO) basis.
“The success of Avon and Dedisa Peaking Power paved the way for the IPP model in South Africa,” Mohamed Hoosen, chairman of Avon and Dedisa Peaking Power said. The two IPPs are meant to serve “as an anchor load for gas conversion [to electricity] through the DOE-driven introduction of natural gas to South Africa,” he remarked, stressing that both Avon and Dedisa support the ramp up of wind and solar power projects by compensating for their intermittency.
Avon & Dedisa IPP realised on BOO basis
The entire electricity output from the two power stations is contracted to be supplied to Eskom Holdings. To that end, 15-year Power Purchase Agreements were awarded by the DOE. Dedisa Peaking Power, located in Port Elezabeth, was commissioned towards the end of 2015.
The fast-start Avon power plant – commissioned on July 20 – is jointly owned by ENGIE, Legend Power Solutions, Mitsui and the Peakers Trust which represents the local community. The OCGT is located in Shakaskraal, 65 km north of Durban in KwaZulu-Natal province.
Creating jobs for the local community
Construction of the Avon IPP started in April 2014, led by a consortium of Ansaldo Energia and Fata as turnkey EPC contractor; main subcontractor was South Africa’s Group 5. Up to 1,500 jobs were created during construction – 63% of the jobs were reserved for skilled black employees, the plant operators pointed out.
“This has been a long road of patience, unwavering tenacity and commitment to meaningful participation by black people in the energy sector,” Mpho Scott, Chairman of Legend Power Solutions commented. “Our two power plants, Avon and Dedisa are contribution over a 1,000 MW of power to help with energy security in our country.”
Through the Peaker Trust, dividends of the plant operations will go to local socio-economic development initiatives.