Bethlehem Hydro

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In May 2005 Bethlehem Hydro signed agreements with Dihlabeng local municipality to build a 4MW hydroelectric plant in the Free State. The project consisted of a 1.7MW site at the Saulkspoort Dam on the As River, and a 2.2MW run of river site. The project was the first hydro plant in South Africa, and also the first Independent Power Plant in South Africa. The plant would provide power to the Bethlehem community by selling electricity to Dithlabeng local council in eastern Free State, and also expected to sell greenhouse gas emissions credits. The plant was the first IPP project in South Africa. Bethlehem Hydro was a joint venture between Dutch firm NuPlanet BV (26%), the Energy Development Corporation of South Africa (49%) and Black Economic Empowerment (25%). The total project cost was R42 million (US$ 6.66 million). Of this, the Development Bank of South Africa provided US$ 4.75 million through a 15 year term loan. The remainder was equity provided by NuPlanet (US$ 0.6 million) and EDC (US$1.2 million). Construction of the plant began in late 2005, and it was due to become operational by 2007.