Rédaction Africa Links 24 with Johanne Prosper
Published on 2024-02-23 08:00:20
Having failed to secure a site in Baie-du-Tombeau and previously in Belle Vue Harel, the Reunionese company has reportedly chosen another plot of land in the North for its two 30 MW solar farms.
The Central Electricity Board (CEB) has recently found itself faced with another site chosen by Corexsolar for its two 30 MW projects, marking the third site since the company participated in the Request for Proposal launched for Renewable Energy Hybrid Facilities in March 2022.
Sources suggest that Corexsolar is now in a “make it or break it” situation with the authorities, after struggling for several months to find a suitable site for its solar farms. A site in the North of the island has now been finalized, and all documentation is undergoing verification by technicians and the CEB board. Time is of the essence for Corexsolar as the deadline of March 19 approaches, which is the deadline set in the Power Purchase Agreement (PPA) signed with the CEB to secure the land for the solar farms.
After facing controversy for submitting a site in Belle Vue Harel that they were unable to acquire during the bidding process, Corexsolar also encountered difficulties in securing a deal for another site, this time in Baie-du-Tombeau, struggling to reach an agreement with the landowners. This time, the chosen site in the North has been acquired. The CEB is closely monitoring the situation, with a decision expected soon, according to informed sources.
In the meantime, the CEB is seeking damages for each day of delay from Corexsolar’s Development Securities starting from November 15. As per the PPA between the French company and the CEB, a penalty of Rs 360,000 per day is applied for delays. The CEB is determined not to face any surprises with the new site chosen by Corexsolar and has assigned a team to carefully review the documents related to the new site.
Despite Corexsolar’s efforts to secure its third site since the public controversy, the company has suffered significant financial consequences. Their penalty, including interest, has increased to Rs 420,000 per day to compensate for the delays and inconveniences caused by failing to meet contractual deadlines.
So far, Corexsolar has paid a total of Rs 37.8 million to the CEB. The deductions are made gradually on a monthly basis, on the first day of each month, as explained by the Minister of Energy and Public Utilities, Joe Lesjongard, in Parliament. Corexsolar had signed two PPAs with the CEB on February 15 of the previous year for the installation of two hybrid renewable energy projects of 30 MW each. The promoter’s investment is estimated at around Rs 5 billion. The company had a deadline of nine months from February 15, 2023, until November 14 to meet the suspensive conditions specified in clause 3.1.2 of the PPA.
Corexsolar had submitted two Development Securities totaling Rs 180 million for these two projects. By November 14, Corexsolar had provided the CEB with a commitment letter regarding the lease of two plots of land in Baie-du-Tombeau for the projects’ needs, as well as the title deed of the landowner. However, contrary to the suspensive conditions of clause 3.1.2, no documentary evidence of clear title and possession of the site had been submitted.
Corexsolar had also requested an extension for a period of six months in November, citing factors that directly impacted the viability of its projects. However, this request was denied. With the deadline for land acquisition approaching on March 19, things are now moving quickly. A resolution is expected soon, indicating that the ball is now in the CEB’s court to evaluate Corexsolar’s new site.
Read the original article(French) on Le Mauricien
