Nedbank, Absa and more funding massive new wind farms in the Eastern Cape

 ·12 Mar 2024

Three huge wind farms and a massive transmission line are set to be built in the Eastern Cape.

The Development Bank of Southern Africa (DBSA) has been appointed as a co-mandated lead arranger alongside Absa and Nedbank to provide debt funding and BEE equity funding for three large-scale wind farms in the Eastern Cape.

The project will supply 330 MW to Sasol and Air Liquide’s operations in Secunda, Mpumalanga, under a 20-year Power Purchase Agreement.

The project’s sponsor is the Enel Green Power RSA and Perpetua Holdings consortium.

“We expect the projects to start operating in 2026 in order to contribute towards the energy supply constraints in the country,” said Lungile Tom, Acting Head of Project Finance at the DBSA.

Sasol previously said that the 330 MW of renewable energy will be produced close to Oyster Bay in the Eastern Cape and will be one of the largest wind-powered facilities in Southern Africa.

Despite the Eastern Cape’s massive wind potential, the lack of transmission infrastructure has often been highlighted as a major hindrance to the adaption of renewable energies in a country that relies on unreliable and dangerous coal-fired power stations.

The project’s expenditure thus includes the construction of a transmission line of 120 kilometres.

“This is commendable considering the need to unlock transmission and distribution infrastructure, which is severely constrained according to Eskom’s latest Generation Connection Capacity Assessment report,” said DBSA.

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