Renergen’s application to have construction suspended on a solar plant being built on disputed land at its onshore gas facility has been rejected by the Department of Mineral and Petroleum Resources (DMRE), according to the solar facility developer SOLA Group, but Renergen says the matter is not yet finalised.
SOLA Group, which is 40% owned by well-known businessman Patrice Motsepe, said in a statement the DMRE had rejected a suspension application submitted by Tetra4, a subsidiary of Renergen, which would have seen all construction work on the SOLA Group’s 195MW Springbok solar project suspended. If built, it will be the biggest facility of its kind in South Africa.
“We are happy that the department’s decision today confirms we have all lawful permits in place and may continue construction on the plant,” said SOLA Group co-founder and executive director Dr Chris Haw.
Renergen CEO Stefano Marani said, however, that the applications it filed with the DMRE constituted both a Section 96(1), or permanent relief, and Section 96(2), or interim relief, under the Mineral and Petroleum Resources Development Act (MPRDA), and the decision publicised by Springbok Solar Project pertained solely to the interim application, which sought interim relief for the Petroleum Right Holder.
“This relief was not granted, as the sterilisation of the resource has already occurred due to the unauthorised construction and installation of solar panels within the Production Right area which Tetra4 intends to preserve,” said Marani in response to Business Report questions.
He said Tetra4 will be submitting its replying affidavit to the DMRE in the 96(1) matter later next week, “which then allows the Department to consider and opine on the substantive merits of the case. It is not our intention to stop the solar development, but to find common ground where we maintain access to the gas-bearing structures.”
Earlier this year, Renergen disputed the construction of the Springbok Solar project, claiming that the project conflicts with its gas production right.
Dr Haw said SOLA was a 100% SA company and had been constructing solar projects for more than 15 years, and he was confident it had followed all legal processes.
The 195 MWp solar project aims to add more than 435 000 MWh of clean energy to the South African grid.
“This equates to CO2 savings of over 370 000 tons a year. The construction started in December 2022, is currently 70% complete, and employs more than 400 people,” said Dr Haw.
He said Renergen was attempting to use a technicality to appeal the decision of the DMRE to issue Springbok Solar a Section 53 permit, which provides ministerial consent to use the surface of the land in any way that may be contrary to the Mineral and Petroleum Resources Development Act (MPRDA), claiming it was not properly consulted.
He said Springbok Solar submitted evidence, however, showing it consulted with Renergen on 10 occasions over two years, in writing and in person, providing Renergen with the layout maps and coordinates of the facility.
He said Renergen raised no objection during any of these engagements, which led Springbok Solar to conclude the construction of the project would have no impact on Renergen’s Production Right and therefore would not be contrary to the objectives of the MPRDA.
“The suspension of the permit risks over 400 jobs, billions of rands of local investment, and significant commitments made to the local community in social economic development expenditure. SOLA notes that if the decision to grant the permit is overturned, all these benefits for both the local community and the environment will be lost,” said Dr Haw.
“The solar farm area represents less than 0.17% of the overall area of the Production Right and has been confirmed by independent experts to have no significance with respect to Renergen’s existing and future plans detailed on their production right,” he said.
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