Kelvin power station

From Global Energy Monitor

Kelvin power station is an operating power station of at least 420-megawatts (MW) in Kempton Park, Ekurhuleni, Gauteng, South Africa with multiple units, some of which are not currently operating.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Kelvin power station Kempton Park, Ekurhuleni, Gauteng, South Africa -26.115776, 28.194019 (exact)

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

  • Phase A Unit 1, Phase A Unit 2, Phase A Unit 3, Phase A Unit 4, Phase A Unit 5, Phase A Unit 6, Phase B Unit 10, Phase B Unit 11, Phase B Unit 12, Phase B Unit 13, Phase B Unit 7, Phase B Unit 8, Phase B Unit 9: -26.115776, 28.194019
  • Unit 1, Unit 2: -26.11578, 28.19402

Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology CHP Start year Retired year
Phase A Unit 1 retired coal - bituminous 30 subcritical 1957 2022
Phase A Unit 2 retired coal - bituminous 30 subcritical 1957 2022
Phase A Unit 3 retired coal - bituminous 30 subcritical 1958 2022
Phase A Unit 4 retired coal - bituminous 30 subcritical 1959 2022
Phase A Unit 5 retired coal - bituminous 30 subcritical 1960 2022
Phase A Unit 6 retired coal - bituminous 30 subcritical 1960 2022
Phase B Unit 10 operating coal - bituminous 60 subcritical 1968 2026 (planned)
Phase B Unit 11 operating coal - bituminous 60 subcritical 1968 2026 (planned)
Phase B Unit 12 operating coal - bituminous 60 subcritical 1969 2026 (planned)
Phase B Unit 13 operating coal - bituminous 60 subcritical 1969 2026 (planned)
Phase B Unit 7 operating coal - bituminous 60 subcritical 1962 2026 (planned)
Phase B Unit 8 operating coal - bituminous 60 subcritical 1964 2026 (planned)
Phase B Unit 9 operating coal - bituminous 60 subcritical 1965 2026 (planned)
Unit 1 announced[1] liquefied natural gas[2] 350[2] not found not found 2023[2]
Unit 2 announced[1] liquefied natural gas[2] 350[2] not found not found 2023[2]

CHP is an abbreviation for Combined Heat and Power. It is a technology that produces electricity and thermal energy at high efficiencies. Coal units track this information in the Captive Use section when known.

Table 3: Unit-level ownership and operator details

Unit name Owner Parent
Phase A Unit 1 Anergi International Ltd [100.0%]
Phase A Unit 2 Anergi International Ltd [100.0%]
Phase A Unit 3 Anergi International Ltd [100.0%]
Phase A Unit 4 Anergi International Ltd [100.0%]
Phase A Unit 5 Anergi International Ltd [100.0%]
Phase A Unit 6 Anergi International Ltd [100.0%]
Phase B Unit 10 Anergi International Ltd [100.0%]
Phase B Unit 11 Anergi International Ltd [100.0%]
Phase B Unit 12 Anergi International Ltd [100.0%]
Phase B Unit 13 Anergi International Ltd [100.0%]
Phase B Unit 7 Anergi International Ltd [100.0%]
Phase B Unit 8 Anergi International Ltd [100.0%]
Phase B Unit 9 Anergi International Ltd [100.0%]
Unit 1 Harith General Partners[1] Coega Development Corporation [100.0%]
Unit 2 Harith General Partners[1] Coega Development Corporation [100.0%]

Financing

    • Source of financing:

Background on coal plant

Kelvin power station is a 13-unit coal-fired power plant with a total capacity of 600 MW. The plant was completed between 1957 and 1969.[3]

The power station formed a crucial part of the City of Johannesburg metropolitan municipality’s power supply and historically supplied between 10% and 14% of the city’s electricity requirements.[4]

As of December 2014, the plant was operating at around 200 MW. At the time, it was controlled by Nedbank Capital and Investec Bank, who invited bids on the power station. The plant had a PPA with the City of Johannesburg through 2021, but the bidder could use the site to build a new plant, as it was already connected to the Eskom grid.[5]

In 2018, the United States Trade and Development Agency (USTDA) funded a study by Novo Energy Ltd to convert the plant to a gas-fired power station.[6]

In South Africa's Integrated Resource Plan (IRP 2019), the power station was planned for retirement by December 2026.[7]

In 2020, City Power Johannesburg was in negotiation with the power station’s management to extend its 20-year power purchase agreement which was coming to an end in November 2021.[8]

In October 2021, City Power Johannesburg said it would stop cutting power to its customers as directed by Eskom as it had secured "additional power supply capacity" from the Kelvin power station. But after Eskom warned that the utility's plans could put the national grid in jeopardy, City Power quickly backed down.[9][10]

In April 2022, the mayor of Johannesburg announced that amid rising costs from municipally-owned Eskom, the city would be extending their power purchase agreement with the Kelvin IPP until 2024.[11]

In August 2022, the city was working to again extend the supply contract, this time until 2026.[12] Noting that extending the life of the coal plant was not a long-term solution, the city was requesting proposals for alternative energy projects, including solar.[13]

Aging Kelvin-A

As of December 2021, Kelvin "A" Station was possibly in a long-term outage.[14]

A November 2022 document stated that the six units commissioned between 1957 and 1960 had been on standby since 2012. The document, titled "Draft Basic Assessment Report for the Decommissioning and Demolition of the Kelvin Power A-Station Power Plant Infrastructure", stated that an environmental assessment was evaluating future development at the site.[15]

Ownership

The power station was originally owned by the City of Johannesburg. In 2001, the power station was privatized and sold to AES. In 2003, AES sold it to Globeleq.[16]

In 2007, a consortium led by infrastructure funds managed by the Macquarie Group, Old Mutual Investment Group, and Kagiso Trust Investments announced that the consortium completed the acquisition of a 95% interest in the power station. The consortium included Aldwych Kelvin Holdings, a subsidiary of Aldwych International, the Netherlands Development Finance Company (FMO), and J&J Infrastructure Holdings. It was supplementing the incumbent shareholder Global African Power and increased the "empowerment shareholding" in Kelvin to over 20%. An Aldwych subsidiary would operate the plant under a long-term operations and maintenance agreement.[17]

In 2013, Nedbank Limited and Investec Bank Limited acquired the equity in Kelvin.[18]

In 2015, the power station was bought by an Aldwych-led consortium. Aldwych, like NOVO Energy, was also a Harith General Partners investment.[16][19]

In May 2021, it was announced that Aldwych International had changed its name to Anergi International Ltd.[20]

Background on gas plant

In 2021, Harith General Partners (parent to Novo Energy Ltd) announced plans to build two gas-fired power plants at the Kelvin site of up to 700 MW.[21]

Articles and Resources

References

  1. 1.0 1.1 1.2 1.3 https://web.archive.org/web/20211028112452/https://www.businesslive.co.za/bd/national/2021-02-05-harith-wants-to-build-joburgs-first-gas-fired-power-plants/. Archived from the original on 28 October 2021. {{cite web}}: Missing or empty |title= (help)
  2. 2.0 2.1 2.2 2.3 2.4 2.5 https://web.archive.org/web/20220615181033/https://harith.africa/johannesburgs-first-gas-fired-power-plants-planned-by-harith/. Archived from the original on 15 June 2022. {{cite web}}: Missing or empty |title= (help)
  3. "Coal-Fired Plants Financed by International Public Investment Institutions Since 1994," Appendix to Foreclosing the Future: Coal, Climate and International Public Finance: Investment in coal-fired power plants hinders the fight against global warming, Environmental Defense Fund, April 2009
  4. "Kelvin power station - Information Summary," Kelvin Power, 2015
  5. "Owners invite bids for landmark Kelvin Power Station," Business Day, December 3, 2014
  6. "South Africa: USTDA supports Kelvin gas project," African Energy, August 24, 2018
  7. "Integrated Resource Plan (IRP2019)," South Africa Dept of Energy, October 2019 (appendix A)
  8. "Joburg ponders how to bypass Eskom," Daily Maverick, February 21, 2020
  9. "SAA's controversial new partner is also linked to the Kelvin power station," fin24, October 26, 2021
  10. "CoJ signs deal with Kelvin Power Station for extra 100 MW," Engineering News, October 11, 2021
  11. "Jo’burg’s plan to tackle load shedding – including an Energy Indaba," Tech Central, April 22, 2022
  12. "Johannesburg Seeks Extension to Deal With Coal-Fired Power Plant," Bloomberg, August 5, 2022
  13. "Joburg to Ask for Independent Power Production Proposals by the End of 2022," Eyewitness News, August 23, 2022
  14. "Power Station," Kelvin Power, accessed December 2021
  15. "Draft Basic Assessment Report for the Decommissioning and Demolition of the Kelvin Power A-Station Power Plant Infrastructure," WSP Group Africa (Pty) Ltd, November 2022
  16. 16.0 16.1 "History," Kelvin Power, accessed December 2021
  17. "Consortium acquires a 95% interest in Kelvin Power," Dataweek, September 19, 2007
  18. "Registration of Interest: Potential Sale of Kelvin Power Station," January 5, 2015
  19. "Study initiated to assess conversion of Kelvin power station from coal to gas," Mining Weekly, August 21, 2018
  20. "Aldwych entities within the Anergi Group have rebranded and will trade as Anergi named entities," Anergi Group, May 24, 2021
  21. "Johannesburg’s First Gas-Fired Power Plants Planned by Harith," Bloomberg, February 4, 2021

Additional data

To access additional data, including interactive maps of the power stations, downloadable datases, and summary data, please visit the Global Coal Plant Tracker and the Global Oil and Gas Plant Tracker on the Global Energy Monitor website.