Nine renewable energy projects set for construction in South Africa

Nine renewable energy projects set for construction in South Africa

A total of nine renewable energy projects are set to be constructed in South Africa; this is after African Infrastructure Investment Managers (AIIM), one of Africa’s leading infrastructure-focused private equity fund managers and a member of Old Mutual Alternative Investments (OMAI) acquired stakes through its IDEAS Managed Fund.

Also Read: Vantage GREENX provides US $136m to renewable energy in South Africa

The nine mega projects entailing of solar plants and wind farms are expected to be operational by 2020 and are projected to provide an additional 800MW of renewable energy capacity into South Africa’s national power grid.

Essential clean energy

Sean Friend, investment director at AIIM confirmed the reports and said that the new plants among other things will provide essential clean energy to the national grid in South Africa.

“The new plants will provide essential clean energy to the grid which, in addition to environmental benefits, will help boost economic growth by creating jobs in construction and follow-up operations and maintenance. We also expect the investment to stimulate further economic development in the areas where the new renewable facilities are located,” he said.

The power facilities

The power facilities will deliver about 2,425 GWh annually, preventing around 2.4mn tonnes of carbon emissions from traditional fossil fuel power plants per annum. When operating at full capacity, they are expected to supply enough green electricity to power about 522,730 medium-sized South African homes.

This additional clean power capacity has been added under Round 4 of REIPPP, which is committed to securing 2,300MW of new renewable electricity for South Africa’s national grid over the next five years.

In total, AIIM’s IDEAS Managed Fund has acquired a 50.01% equity stake in Bokamoso (67.9MW), Waterloo (75MW), Droogfontien II (75MW), Zeerust (55MW), Greefspan II (75MW) and De Wiltd (50MW).

AIIM also facilitated social and economic benefits which include 100% SA ownership, 50 per cent direct black ownership, greater than 65% black ownership including indirect black ownership and 40% black participation in engineering, procurement and construction (EPC) contracts.

The fund has also acquired stakes in three wind farm projects including Roggeveld (147MW), Perdekraal (110MW) and Kangnas (140MW).

NO COMMENTS

LEAVE A REPLY