Independent power producer (IPP) Sonnedix says it has closed a deal with Juwi Renewable Energies, which will build the 86 MW Prieska PV solar park in South Africa’s Northern Cape Province.
The project was chosen by South Africa’s Department of Energy under the third bidding window of the national Renewable Energy Procurement Programme (REIPP) in October 2013. Launched in 2011, the REIPP aims to add 3,725 MW of renewable energy capacity to South Africa’s power-hungry electricity network, and stimulate the growth of the nation’s solar and wind industries.
Sonnedix also won the backing of the nation’s major financial institutions, Nedbank and Standard Bank, after partnering with Mulilo, a major South African renewable energy developer. Eksom, South Africa’s sole power utility, has signed a power purchase agreement with the consortium to buy electricity from the project.
Juwi Managing Director Greg Austin confirmed construction of the solar park would begin in the first quarter of 2015, and was jubilant at the decision by the Department of Energy to choose the project over six other bidders.
“We are proud to realize this milestone project and delighted to, once again, be playing a key role in adding substantial amounts of clean energy to the South African electricity grid,” he said.
“We are also proud that our efforts in designing the economic development aspects of the project brought the desired outcome.”
In addition to building the Prieska park – the largest solar plant the company has undertaken anywhere in the world – Juwi will also provide operations and maintenance services over the life of the project.
Franck Constant, President of Sonnedix, congratulated the government of South Africa on their commitment to building a solid solar power sector.
“This first closing in South Africa is a considerable milestone for our company. It confirms the growth strategy and added value of Sonnedix in new markets where clean renewable electricity is in high demand and cost effective compared to conventional power.”
South Africa has seen a huge amount of growth in renewables investment. In October last year, Bloomberg New Energy Finance (BNEF) said close to USD $10bn of clean energy investment had occurred in the previous two years.
