South Africa - ESKOM Distributed Battery Energy Storage Program - IPR May -2024

Implementation progress and results report ipr a. report summary and proposed actions report data project name: eskom distributed battery energy storage programme project code: p-za-fa0-006 country south africa sector: electricity environmental categorization 2-category 2 report type: date of report: 26.06.2024 mission: field mission 3 from: 06.05.2024 to: 10.05.2024 prepared by task manager: anthony karembu njeru alternate task manager : division manager : kanonda farai epiphanius pesd5 project data project financing in usd financing sourceinstrument foreign currency local currency totalclean technology fund project 57,671,199.15 57,671,099.15 115,342,298.30t o t a l 57,671,199.15 57,671,099.15 115,342,298.30processing milestones bank approved financing only loan number date approved date signed date of entry into force date effective for first disbursement disbursement deadline 5560131101 27.10.2021 11.07.2022 11.07.2022 06.04.2023 31.03.2025 loan amount in uac loan number net loan approved uac signed uac cancelled uac net loan uac 5560131101 57,671,199.15 43,860,094.11 43,860,094.11 0.00 43,860,094.11 t o t a l 43,860,094.11 43,860,094.11 0.00 43,860,094.11 disbursment status at supervision date in uac loan number disbursed to date disbursed to date uac disbursed to date undisbursed to date in uac undisbursed to date 5560131101 22,200,.00 16,883,541.59 38.49 26,976,552.53 61.51 t o t a l 16,883,541.59 38.49 26,976,552.53 61.51 executing and implementation agencies borrower eskom holdings ltd public sector clientguarantor government of south africa ministry of finance, dept. of financeexecuting agency eskom holdings ltd public sector clientperformance status progress towards development objective rating on development objective do performance rating summary of key findings current previous the project is on course to increase efficiency and reliability of electricity supply to the grid from clean energy variable renewable energy - vre through dispatchable battery energy storage systems as well as to reduce ghg emissions. hex pongola and elandskop sites have been completed and commissioned satisfactory satisfactory and will increase the level of achievement of the developmental goal of the project the remain contracts for pinggao are expected to be comissioned in novermber 204 implementation progress rating on implementation progress ip performance rating summary of key findings current previous project implementation is ongoing and satisfactory following the comissioning of the hex, pongola and elandskop sites under the hyosung contracts construction of the pinggao contracts has commenced, the majority of the critical equipment have been procu red and delivered to site. a few containers delayed were delivered in april 2024. however, pinggao has not yet shipped the 10mva transformer due to currency issues. eskom noted the assistance being provided, however pinngao is yet to finalize the fdps thus working on site at risk. overall construction of the pinggao sites has been slow and a major issue being the change of sub -contractors. in skaapvlei, the bess bulk earth works are in progress while at graafwater, proconis is busy with the substation works . several challenges still noted under the pinggao contract include the contractor not being able to meet their contractual completion date and thus applied for an extension of time eot and cost claim which is being considered by eskome due to design iss ues that expected to be rectififed and commencement of contstruction being q4 2023. overall implementation has been satisfactory. satisfactory highly satisfactory overall project performance classification overall project performance pp, or n performance rating summary of key findings current previous overall implementation of the project is satiffactory following the recent commissioning of pongola and elandskop sites. pinggao is working on a recovery schedule whereby the hot commissioning of the paleisheuwel 45mwh, graafwater 30mwh, and skaapvlei 32 0mwh have been rescheduled to november 2024. non potentialy problematic project non potentialy problematic project issues, risks and actions for management consideration issues affecting project implementation key issues corrective actions responsible deadline status slow disbursement of the loan to eskom follow up with eskom to ensure the afdb is allocated substantial disbursement from the nation treasury foreign limit clearance for eskom. targeting upto usd 10 million to be disbursed in june 2024 follow up with eskom to ensure the afdb is allocated substantial disbursement from the nation treasury foreign limit clearance for eskom. targeting upto usd 10 million to be disbursed in june 2024 eskom 30.06.2024follow up with eskom in progressmain risks and mitigation risks mitigation measures applied or proposed responsible deadline disbursement risk risk that afdb will not be considered in the next disbursement foreacast for eskom due to competing disbursement of the world bank constant discussions and follow up with the eskom treasury team to ensure afdb is prioritized in the foreign borrowing limit clearance by national treasury and incorporate required information on client connection eskom and afdb 30.09.2024 follow up with eskom facility that expired in december 2023 and fully disbursed by february 2024, b. results reporting and assessment progress towards development objective project purpose state the project development objective usually the project purpose as set out in the results -based logframe and assess progress the battery energy system storage project will consist of design, engineering, supply, construction, installation, testing an d commi ssioning distributed battery storage infrastructure at eskom sub -stations located at existing variable renewable energy vre plants, upcoming distributed solar pv to be implemented by eskom distribution operated by eskom renewables and the new reisites proje cts from bid window 4 5. the overall bess is structured in two phases. phase i will incorporate 7 sites identified in the western cape, northern cape, eastern cape and kwa -zulu natal provinces. the sites were evaluatedagainst a high -level set of criteria notably i proximit y to existing renewable energy plants; ii primary use per site dedicated to national peak shaving; capacity per site based on environmentaland land availability; iv 4 hours minimum discharge capability; v ancillary support voltage, frequency, reactive power or qos support. phase i aims to install at 200 mw of battery storage withfour 4 hours of energy storage capacity per day, equivalent to 800 mwh 200 mw ' 4h = 800mwh. phase i is expected to achieve commercial operation by december 2023. phase ii willincorporate 9 sites to be identified in free state, gauteng, north west, mpumalanga and limpopo provinces. outcome reporting outcome indicators as per rlf baseline value most recent value end target progress toward endtarget assesment accelerated development of large -scale renewable energy capacity percent of renewable energy in the energy mix 8. 8. 15. 0.00 likely to be achieved with correctives actions package 2b pongola 160mwh and elandskop 32mwh in kzn, package 3b hex - 100mwh in western cape worcester, package 3a paleisheuwel 45mwh and graafwater 30mwh, and package 1 skaapvlei 320mwh in western cape will facilitate evacuation of renewable ener gy from adjacent re projects in western cape. package 4 melkhout and reinfointein will also facilitate the evacuation of curtrailed 200mw of wind.this is will probably increase dispatchable re into the grid.mitigated greenhouse emissions million tons of co2 -equivalent mitigated tca 0.001 0.192 0.292 65.64 likely to be achieved with correctives actions package 2b pongola 160mwh and elandskop 32mwh in kzn, package 3b hex - 100mwh in western cape worcester, package 3a paleisheuwel 45mwh and graafwater 30mwh, and package 1 skaapvlei 320mwh in western cape will facilitate evacuation of renewable ener gy from adjacent re projects in western cape. this is will probably increase dispatchable re into the grid and mitigate co2 emissions.dispatched variable renewable energy incremental capacity of dispatchable bess energy mwh 0.001 292. 800. 36.50 likely to be achieved with correctives actions package 2b pongola 160mwh and elandskop 32mwh in kzn, package 3b hex - 100mwh in western cape worcester have been passed their performance testing and expected to be commissioned in june - july 2024jobs created number of part -time equivalent jobs created during construction phase nbr 0.001 350. 1,500. 23.33 likely to be achieved with correctives actions expected jobs have materialize during construction in particular hex ,pongola and elandskop. ancipated jobs for the package 3a paleisheuwel 45mwh and graafwater 30mwh, and package 1 skaapvlei 320mwh in western cape will increase the part -time jobs targ et. these packages have since commenced construction.number of full -time equivalent direct jobs created during operation nbr 0.001 30. 100. 30.00 likely to be achieved with correctives actions hex, pongola and elandskop will be commissioned in june -july 2024. iin this regard increase the permanent jobsoutcome rating rating on project outcomes performance rating summary of key findings current previous significant achievement of the outcomes expected in q4 2024 3 3 output reporting output indicators most recent value annual target end target progress towards annual target progress towards end of project target assessment battery energy storage system bess installed mw of bess installed with 4 hours of battery storage mw 68. 200.00 200. 34.00 34.00 on track the hex site 20mw was commissioned on 9 november 2023; the performance testing and dry run was completed on 28 april 2024 at pongola 40mw and the contractor is preparing the report. performance testing and dry run at elandskop 8mw was completed on june 9, 2024. total bess installed to date is 68mw volume of direct financing leveraged through ctf funding amount in usd million mi 340. 440.00 440. 77.27 77.27 on track world bank and new development bank have mobilized upto usd340 million in 2024 output rating rating on project outputs performance rating summary of key findings current previous expected output already achieved on the usd leveraging, however, mw output has significvantly improved with the completeion of hex, elandskop and pongola at 68mw in total. 4 4 development objective do rating progress towards development objective rating on development objective do performance rating summary of key findings current previous the project is on course to increase efficiency and reliability of electricity supply to the grid from clean energy variable renewable energy - vre through dispatchable battery energy storage systems as well as to reduce ghg emissions. satisfactory satisfactoryhex pongola and elandskop sites have been completed and commissioned and will increase the level of achievement of the developmental goal of the project the remain contracts for pinggao are expected to be comissioned in novermber 204 additional andor unanticipated outcomesoutputs optional indicator baseline end target most recent value :52:42 -prd

Project document

EU Calls: Credit © European Union, 1998-2024 under <a href="http://creativecommons.org/licenses/by/4.0/">CC BY 4.0 licence</a>