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Africa

South African gas producers launch dispute over solar power project

adminBy adminOctober 28, 2024Updated:October 28, 2024No Comments2 Mins Read
South African gas producers launch dispute over solar power project

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(Bloomberg) — South Africa’s Renergen has accused its solar power projects in locations where natural gas producers have production rights of “unauthorized construction” and is one of the challenges facing the country in its energy transition. The part is embossed.

Rennergen said in a statement that construction on the Springbok solar project had begun in an area earmarked for future gas extraction “without prior consent or coexistence agreement,” but the developer’s name was Didn’t make it clear.

SOLA Group is developing a 150-megawatt project in Virginia, Free State, according to the company’s website. Customers include Amazon, AB InBev and Sibanye Stillwater Ltd.

The Springbok factory has “obtained all necessary legal permits to begin construction of the facility,” the developer said in a response to questions. “Renergen did not raise any objections until several months after construction began, but then issued a letter demanding changes to the layout, demanding compensation, and instructing Springbok to halt construction. did.”

South Africa has historically been plagued by rolling blackouts where demand for electricity exceeds supply, but South Africa is in the process of moving away from its dependence on coal-fired power generation. The continent’s most industrialized country is expected to add 50 gigawatts of wind and solar power by 2030 to replace some of the world’s dirtiest fossil fuel generation, according to BloombergNEF. has been done.

Lenergen prides itself on contributing to the country’s decarbonization through the production of helium-rich natural gas, which Stefano says is “essential for the production of solar panels and wind turbines.”・CEO Malani said in a statement.

Other solar power generation facilities and battery energy storage system facilities are also planned within Renergen’s production rights area, the company said.

According to SOLA, the dispute escalated into a legal battle after Lenergen appealed some of the Springboks’ approvals and initiated legal proceedings. The developer then challenged the gas company’s helium claim, which was “filed on the basis of material misrepresentations by Lenergen,” the statement said.

(Adds comments throughout from solar developers.)

©2024 Bloomberg LP

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