Readers of this blog may remember that these two facilities are part of South Africa’s Renewable Energy Independent Power Producer’s Program (REIPPP), and were approved by South Africa’s Department of Energy in their first round of bids. The generators will be able to power 130,000 South African homes, and as part of the REIPPP mandate, a portion of the revenue from these facilities will go towards development work in local communities.
They represent the largest renewable energy projects in continental Africa and some of the biggest project finance transactions completed in South Africa. Both of the photovoltaic facilities have signed a 20 year power purchasing agreement with the South African electricity utility company Eskom, one of the largest in the world. Eskom currently generates 90% of its power from South Africa’s vast coal resources, but the nation is trying to reduce its carbon footprint through the REIPPP initiative mentioned above.