US $1.2bn new wind power projects set for construction in South Africa

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Wind power projects amounting to a whopping US $1.2bn are set for construction in South Africa by Enel Green Power.

The Enel Group’s South African renewables company, signed with senior lenders Nedbank Limited and Absa[1] all project financing agreements of up to 80% of the overall investment of around US $1.4bn on a portfolio of five new wind projects, totaling roughly 700 MW of capacity.

Five wind power projects

The five facilities set for construction, namely Nxuba, Oyster Bay, Garob, Karusa and Soetwater, have a capacity of around 140 MW each. The Enel Group is contributing around US $266m in equity in the construction of the five wind farms. Following the signing of the agreements, also known as “financial close”, construction of the first project, Nxuba, is expected to start by the end of 2018.

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“We have reached an important milestone in South Africa by achieving financial close on five major wind projects which confirm our continuing commitment to the country’s renewables sector, within a context of sustainable development. Enel Green Power will be supporting these processes by generating its emission-free energy in partnership with local shareholders and in cooperation with the local communities, according to our long-term vision of shared value creation,” Antonio Cammisecra, Head of Enel’s Global Renewable Energies Division Enel Green Power, commented.

The Garob, Karusa and Soetwater projects will be constructed in the Northern Cape Province, while the Oyster Bay and the Nxuba wind farms will be built in the Eastern Cape Province. The five wind farms were all awarded in round 4 of the South African government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). Each project is minority-owned by a local partner.

Construction dates

Following the start of construction of Nxuba, construction of Oyster Bay and Garob is expected to start by the first half of 2019 and construction of Soetwater as well as Karusa is expected to start in the second half of the same year. Nxuba is expected to be operational in the second half of 2020, Oyster Bay in the first half of 2021, while Garob, Soetwater and Karusa in the second half of 2021.

By 2021, all five new wind farms are due to be up-and-running, bringing Enel Green Power’s total installed capacity in the country to more than 1.2 GW. Once operational, the five projects are expected to produce around 2.6 TWh each year, saving the annual emission of roughly 2.7 million tonnes of CO2 into the atmosphere.

About Enel Green Power

Enel Green Power (EGP), the Renewable Energies division of Enel Group, is dedicated to the development and operation of renewables across the world, with a presence in Europe, the Americas, Asia, Africa and Oceania. Enel Green Power is a global leader in the green energy sector with a managed capacity of around 42 GW across a generation mix that includes wind, solar, geothermal and hydropower, and is at the forefront of integrating innovative technologies into renewables power plants.

In South Africa, EGP operates more than 520 MW of wind and solar plants, namely the 88 MW Nojoli wind farm and the 111 MW Gibson Bay wind farm in the Eastern Cape province as well as the PV plants Paleisheuwel (82.5 MW, situated in the Western Cape province); Tom Burke (66 MW, in the Limpopo province); Upington (10 MW) and Adams (82.5 MW), both located in the Northern Cape province; and Pulida (82.5 MW), located in the Free State province.