South African steel giant looks for companion for 110MW of PV

• South Africa-based steel producer ArcelorMittal SA (AMSA) is inviting propositions from independent power producers (IPPs) to develop 2 utility-scale solar projects as it seeks to decrease its energy costs.

The company has released a request for details (RFI) for IPPs to build, have and also operate two projects amounting to 110MW at its Vanderbijlpark head office.

AMSA stated the two initial projects at its HQ would certainly be signed up with by "multiple" further 10MW plants at its various other websites throughout South Africa.

The RFI stated AMSA intended to begin its move into solar with a 10MW at the Vanderbijlpark site, followed by a 100MW project if the necessary amendments to South Africa's regulative structure loom.

AMSA mooted the capacity for a 100MW PV project at its Vanderbijlpark website earlier this year however highlighted present governing limitations that cap own-use generation projects in South Africa at 10MW. The government is dealing with stress to relieve this limitiation.

AMSA said the effective IPP would certainly build, owner as well as operate the plant, taking responsibility for elements of financing and also EPC job. The steel producer will certainly be single off-taker for the power generated by the plants, where it wants to minimize its energy costs by 15%.

The steel manufacturer said it wanted to have a PPA for the initial project signed off by September 2021.