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German Wind Energy in South Africa

The German supplier of wind turbines AN Windenergie GmbH started evaluating the South African market regarding wind energy generation in February 1997. They have been contacted by Oelsner Group to provide input and know-how to develop a 5 MW wind farm. Oelsner Group identified already in 1996 the Western Cape as an area well suited to the siting of wind farms.

Despite the fact that the energy price level in South Africa is very low, no legislation for power purchase agreements exists and big-scale wind farms are unknown, Oelsner Group stuck to the idea to develop a wind farm project. Oelsner Group convinced AN Windenergie GmbH, to walk the way of implementation together.

Since that time nobody thought, that this way will be that long, tough and politically guiding. Meanwhile quite a number of very important parties are involved in the realisation process. In these days authorities like  the South African Department of Minerals and Energy (DME), the National Electricity Regulator (NER) and Fund holders like the Development Bank of Southern Africa (DBSA), Global Environmental Facility (GEF) - just to name a few - are working together to make sure that in the year 2000 the first 5 MW will supply renewable, CO2-emmission-free energy to the grid of Darling municipality. Oelsner Group formed a company called the Darling Independent Power Producer (Darling IPP) who will be the operator of the wind farm.

The difficulty of the project is the viability in terms of energy generation costs compared with the energy prices from the national utility Eskom at present. Without grants in the form of a bonus for avoided CO2-emmisions it is not possible to realise a wind energy project at present. But things and prices will change in the future and the reason, why it is important for South Africa to build a demonstration wind farm now as a pilot project, is: With the Darling wind farm it will be possible to gain experience in operating and optimising a wind farm and this could lead to the introduction of a new technology and possibly a new industry into South Africa. Thus, new jobs can be created in South Africa! In Germany, the world leader of installed wind capacity (more than 4.000 MW), about 15.000 people are working in the wind industry.

For AN Windenergie GmbH the Darling wind farm is an important political sign of the South African Government to step into the next millennium!

Bremen, December 03, 1999

Mr. Heiko Wuttke

International Business Department

Waterbergstrasse 11, D - 28237 Bremen

Phone: +49 – 421 – 694 580

Fax: +49 – 421 – 642 283

anwind@compuserve.com

17 MW wind farm in Germany                                                                            Source: AN Windenergie GmbH