Major R2 billion solar project kicks off in South Africa

 ·6 Jun 2024

Renewable energy group AMEA Power says it has reached a financial close on its 120MW Doornhoek Solar Photovoltaic (PV) Project in South Africa.

When commissioned, the US$120 million (R2.2 billion) project will be the company’s first operational asset in the country.

AMEA Power is the majority shareholder in the 120MW solar PV project, and has partnered with
Ziyanda Energy and Dzimuzwo Energy.

The project was first awarded to the consortium through Bid Window 6 of the REIPPPP.

Standard Bank South Africa provided debt funding of USD100 million (approximately R1.8 billion) to AMEA Power, while Industrial Development Corporation provided the USD8 million (approximately R150 million) of equity funding to the local partners.

The company signed a Power Purchase Agreement on April 30th , 2024, with Mineral Resources and Energy Minister Gwede Mantashe and Segomoco Scheppers, Eskom Group’s Executive for Transmission.

The 120MW Doornhoek Solar PV Project is located near the town of Klerksdorp in the North Western Province, and will generate 325GWh of clean energy, power an estimated 97,000 households and offset 330,000 tonnes of carbon emissions annually.

The project is expected to commence commercial operations by December 2025.

As part of AMEA Power’s “Community Investment and Development Program”, the company will implement initiatives aimed at benefiting the socio-economic growth and development of the local community, which are aligned with the United Nations’ Sustainable Development Goals.

Read: Billionaire Patrice Motsepe’s big solar plans for South Africa

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