SunEdison, the Kurisani Youth Development Trust, Chint Solar, and the Public Investment Corporation have announced a deal for R$2.6 billion ($314 million) in equity and long-term financing for two South African solar projects.
The two utility-scale projects, slated for the Limpopo province, will have a combined power capacity of 58 megawatts (MW) AC, (28 MW AC in Soutpan Solar Park; 30 MW AC in the Witkop Solar Park). They will be the first utility-scale projects in the province and will receive further financial backing from Future Growth Asset Management and Standard Bank.
South African Utility Eskom will buy the power, thanks to a 20-year Purchase Power Agreement (PPA).
Construction for both projects will start in the beginning of 2013, with the Witkop Solar Park expected to be up and running by April, 2014, and Soutpan by January 2014.
Meanwhile, when both projects are fully operational, they will be watched by SunEdison’s Renewable Operation’s Center (ROC), using the SunEdison Environmental Energy Data System to track the solar farm’s performance against its production.
Officials are keen the new solar farms will help boost South Africa’s renewable energy capacity.
“As a world leader in renewable energy, we understand our projects have a transformational impact on the lives of millions of people. We are delighted that our investments in South Africa will create employment and stimulate business investment,” said SunEdison Vice President and Managing Director for South Asia and Sub-Saharan Africa Pashupathy Gopalan.
“The energy delivered by these projects will sustain economic growth bringing both social and fiscal benefits. We are committed to this region and will continue to build our local team moving forward,” he said.
“We applaud the efforts of government and other involved parties to ensure the economic benefits are spread as widely as possible within a sound legal framework. We are particularly delighted to partner with SunEdison and the Chint Group, in a mutually beneficial relationship that will bring upliftment to the area,” said Futuregrowth portfolio manager Mei-Chi Liou.
A University of Winnipeg graduate who received a three year B.A. with a combined major in Economics and Rhetoric, Writing & Communications. Currently attempting to be a freelance social media coordinator. My eventual goal is to be a clean tech policy analyst down the road while I sharpen my skills as a renewable energy writer. Currently working on a book on clean tech and how to relate it to a broader audience. You can follow me on Twitter @adamjohnstonwpg or at www.adammjohnston.wordpress.com