Commercial operation has begun at the independent gas-fired Dedisa Peaker Power Project in South Africa. The 335 MW gas-fired plant is located in the Coega Industrial Development Zone, Port Elizabeth.
The power plant which was constructed at an estimated cost of US $0.26bn was an initiative of the Department of Energy.
The companies will also own it and operate it under a contractual agreement.
The Dedisa Peaking Power project comes in as the first large scale independent power project initiated by the Department of Energy together with the 670MW Avon project which is located near Durban and was constructed at US $0.44bn.
Power generated by both plant would be sold to the National utility-Eskom under a 15 year power purchase agreement (PPA). Both plants are adjacent to high voltage Eskom substations with electricity being fed into the transmission system at 275 kV and 400 kV respectively.
During the construction period, 1400 got employment with 70 percent of them being from the local community, 57 percent of black management and in excess of 2.3% of payroll spent on skills development initiatives. Its operation will also create more employment both permanent and short term.
Peaker Trust, a representative of the community ownership of the project has 10 percent of stake in the plant and the dividend they get from the plant operation will help fund socioeconomic development initiatives.