Dedisa supplies power to Eskom

Johannesburg - Dedisa Peaking Power, a venture of ENGIE (formerly GDF SUEZ, France), black majority owned Legend Power Solutions (RSA), Mitsui & Co. (Japan), and The Peaker Trust (RSA) representing the community in the area, has announced that it has started commercial operation of the 335 MW Dedisa Peaking Power Project in Port Elizabeth.

Together with the 670 MW Avon Peaking Power Project near Durban, Dedisa is SA's first large scale independent power project originated by the Department of Energy.

The power generated by these two open cycle gas turbine power plants will be sold to Eskom under a Power Purchase Agreement over a 15-year term.

The construction of Dedisa Peaking Power, by the consortium of Ansaldo Energia and Fata of Italy, started in September 2013. It has been a major source of local employment, with a peak of 1 400 workers on site reached in November 2014.

Recruitment as well as local subcontracting were made largely in coordination with the COEGA Development Corporation, the industrial development zone authority.

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The achievements of the project during construction, in terms of job creation, skills transfer and BEE, exceeded the objectives agreed with the government, the announcement said.  Nearly 70% of total workforce employed to construct the facility was from the local black communities, with 57% black management and in excess of 2.3% of payroll was spent on skills development initiatives.

The operation of the plant will create permanent direct and indirect jobs for the local community over the 15 years of the Power Purchase Agreement.

The start of operations will benefit The Peaker Trust, an independent trust that has been established to ensure that local broad-based black organisations and communities can benefit from the project. The trust owns 10% of Dedisa and the dividends it gets will go to local socio-economic development initiatives for at least 15 years.