Four new renewable energy projects in South Africa receive support from MIGA

Four new renewable energy power plant projects for South Africa have received support totalling US $116m from the Multilateral Investment Guarantee Agency (MIGA), a subsidiary of the World Bank Group which recently released the guarantees. The future plants, with a combined installed capacity of 288 MW, will be constructed and developed by the energy company BioTherm Energy, a subsidiary of Actis. Guarantees distributed by MIGA for the renewable energy projects total US$46.9 million for the Aggeneys and Konkoonsies II photovoltaic power plants in the Northern Cape and US$68.9 million for the two wind power plants of Golden Valley and Excelsior, planned in the Eastern and Western Cape.

Also Read: AIIM divests itself of two renewable energy projects in South Africa.

These guarantees from MIGA for the four new renewable energy power plant projects for South Africa cover the construction, ownership and operation of the four projects. They permit BioTherm Energy, the holder of these projects, to realize its investment while being protected against the risks of transfer, inconvertibility, expropriation, breach of contract, civil unrest and war, for a time period of 15 years. “We are pleased to continue to work with experienced investors and promote investment across Africa despite the tense global environment,” said Executive Vice President of Miga, Hiroshi Matano. Furthermore, he is hopeful that the support will “increase renewable energy capacity to meet demand, facilitate the diversification of South Africa’s energy mix and help reduce greenhouse gas emissions”.

Based in Johannesburg, South Africa, BioTherm Energy is one of Africa’s leading independent power producers with nearly 400 MW of wind and solar projects under construction in South Africa and Kenya. Bought out 100% in August 2019 by the world’s leading emerging market investor Actis, BioTherm Energy, through its new renewable proposals, plans to make a significant contribution to the implementation of the Independent Renewable Energy Supply Programme for Power Producers in South Africa. The 288 MW generated by these projects will be sold for 20 years to Eskom, the South African electricity distribution company, under a power purchase agreement (PPA) that the two parties signed in 2018.

 

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