African Power Corporation (AFPOC)

• Currently only about 85% of South Africa’s population have access to electricity. This represents a dramatic increase from 35% of households having access to electricity in 1990; however the country’s demand, which is currently not satisfied, is expected to double in the next 20 years. Large-scale national electrification interventions have provided a foundation for many communities to improve their economic wellbeing, health and quality of life, but around 8 million people still lack access to electricity.
• The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has been designed by public authorities to encourage private companies to assist in reaching a targeted production of 10,000 GWh of renewable energy. This targeted production of 10,000 GWh is equivalent to about 5% of the present electricity generation in South Africa, and is the amount of electricity required for approximately 2 million households. Projects which succeed to take part in the program are able to sell their production to the national grid at previously agreed tariffs.
• Local job creation, local ownership, and economic and socio-economic development are criteria which the projects must fulfill to qualify for the REIPPPP. This is particularly significant as South Africa has a rate of unemployment of 25%.
• Large parts of South Africa’s coastal land, as well as various inland areas, yield a commercially tenable source of wind energy, which has not yet been fully harnessed.

• African Clean Energy Developments (ACED) has onshore wind and solar PV projects in various stages of development. The most advanced of these is the Cookhouse Wind Farm; once completed, it will be the largest wind farm in South Africa.
• Once beginning commercial operations in 2014, the Cookhouse Wind Farm will provide enough power for about 145,000 low-income homes in the area - a net of 135.4MW of clean power capacity via a grid connection located adjacent to the site.
• The Cookhouse Wind Farm Project will supply clean energy directly to the national grid; it is taking part in the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) as a small independent power producer.
• The Cookhouse Wind Farm project will contribute significantly to local economic development by offering additional jobs and training - not only during the construction phase, but continuing over the project life. In addition the project will actively invest in socio-economic development initiatives, including education, health, skills development and environmental conservation.
• ACED has worked with its partners to establish the Cookhouse Wind Farm Community Trust, creating a black economic empowerment ownership scheme holding 25% equity in the Wind Farm. The local communities within a 50km radius will benefit from funds for community development programmes, in particular supporting the local agriculture sector.

Obviam has made reasonable efforts to ensure the accuracy of the data presented. A case study is made possible both through Obviam’s first-hand experience and/or the information provided by Obviam’s investment partners. Data is valid as per the date recorded.