Act. Change. Power. DOE Workshop Business Opportunities Available in Energy Sector 31August 2012 Our VISION is to become the leading cleaner energy Independent Power Producer in Southern Africa, serving an expanding energy market We endeavor to win a significant share of a planned 16 GW by 2025 in Southern Africa Energy is everywhere. Cennergi aims to be the leading cleaner energy producer in Southern Africa. 2 Generation mix. 3 Aspirational target of of 0.3 - 0.5 grid emission factor Coal 15% Renewables 45% Gas 40% Company formation. + = 2nd March 2012: 50:50 joint venture between Exxaro and Tata Power creates Cennergi (Pty) Limited Created by companies from developing nations to serve developing nations 4 Play a key role in the African electricity generation market Focus on the investigation of feasibility, development, ownership, operation, maintenance, acquisition and management of electricity generation The initial project pipeline focuses on renewable energy projects in South Africa and Cennergi’ s strategy is to create a balanced portfolio of generation assets 5 South Africa’s IPP procurement programme. • Launched by SA Government’s Department of Energy – 3 August 2011 • Programme objectives: – Job creation – Entrepreneurial development and support – Education and development of skills – Socio-economic development through support of community programmes – Community participation through equity shareholding in the wind project • Programme was designed to: – Procure 3725MW of renewable energy through 5 bidding windows (November 2011 – March 2013) – Start and stimulate the renewable energy industry in South Africa Cennergi- preferred bidder status. 21st May 2012: Cennergi was awarded preferred bidder status for 2 wind farm projects • • • • • • • • • Bedford 139MW 95% Cennergi 5% Trusts Tsitsikamma 95MW 75% Cennergi 16% Watt Energy 9% Trust Tsistikamma Community Wind Farm 7 Amakhala Emoyeni Wind Farm Tsitsikamma Community wind farm. • Technology: Onshore Wind • Capacity: 95MW (31 wind turbines) • Location: Portions 3-9 of Wittekleibosch Farm 787, Tsitsikamma Region, Eastern Cape • Substation: Melkhout (via Dieprivier) • Project Structure: 75% Cennergi (Pty) Ltd, 16% Watt Energy 9% Tsitsikamma Community Trust • EPC and O&M Contractor: Vestas Southern Africa • MLA: Nedbank Limited • Committed to spending 1.5% of its revenue on socio-economic development and 0.6% on enterprise development Tsistikamma Amakhala Emoyeni wind farm. • Technology: Onshore Wind • Capacity: 139MW (66 x 2.1MW turbines) • Location: Blue Crane Route District Municipality of the Eastern Cape Province • Substation: Kopleegte switching station (132kV) and Poseidon (400kV) • Project Structure: 95% Cennergi (Pty) Ltd, 5% Community Trusts • EPC and O&M Contractor: Suzlon Wind Energy South Africa (Pty) Ltd • MLA: Standard Bank of South Africa • Committed to spending 1.5% of its revenue on socio-economic development and 0.6% on enterprise development Amakhala Emoyeni Tsitsikamma Wind Farm Construction Period Total Construction Period Civil Works Electrical Works Delivery Installation Commissioning 22 February 2013 Total Construction period approx. 20 months Construction Period: Local Business Jobs to be sourced from the local community Transport, Crane, Installation Civil Works Electrical Works - Equipment rental (forklifts, trailers, cranes) - Safety gear - Material supply (concrete, rebar, piping, earthing, etc.) - Equipment Supply - Fencing - Engineering - Equipment Rental (Drilling rigs, earth movers, cars, trucks) - Temporary offices/ accommodation - safety gear - security during construction - accommodation, restaurants - equipment supply (cables, substation equipment, switchgear, transformers, etc.) - Engineering - safety gear - security during construction - accommodation, restaurants - Fencing Construction Period: Jobs Jobs to be sourced from the local community Transport, Crane, Installation Civil Works Electrical Works - General Labour - Transport assistants (eyes on the ground) - Flagmen - Assistant Riggers - Forklift drivers - Security - Clerk (administration - Cleaners // House Keeping - - General Labour - Trenching and backfilling - Excavate - Bolt structures - Pull cables - Messengers - Cleaners - Security - Making good – cleaning, removing rubble, etc - Any other unskilled work General Labour Pipe-laying Trench backfilling Foundation base preparations - Steel fixing - Erect & Strip Formwork - Pouring of concrete Sustainable Communities Model Cennergi’s Vision, Mission and Values Cennergi’s Growth Strategy (MW capacity growth) Regional Growth Offtaker Technology Cennergi’s Business Principles Financial Capital Manufactured Capital Human Capital Social Capital Natural Capital • Superior returns • Representative • Understand community • GEF < Regional • Energy and supporting • Community ownership workforce needs • Minimise impact of infrastructure • Local financial benefit • Training programmes • Energy solutions operations and office • Support local • Energy Impact Fund • Fair and transparent • Respect • Responsible, efficient manufacturing • Quality funding • Safe and healthy • Building trust resource use • Thriving Financially • Equitable • Well Connected • Adequate utilities • Well designed and built • Equipped to contribute • Fair labour practices • Well Run • Well Served • Fair for everyone • Active, inclusive and safe Sustainable Communities National Objectives e.g. National Growth Plan Regional Objectives: NEPAD Global Objectives: MDG, UNGC • Environmentally Sensitive Social and Economic Development. • • With expertise, resolve and resources we strive to create benefit for all People Environment Economy Shareholders Cennergi, making a positive difference in the communities we work with Thank you. Energy is everywhere. Cennergi aims to be the leading cleaner energy producer in Southern Africa. 16