Renewable energy developer Mzansi Energy Consortium has signed a 12-year power purchase agreement (PPA) with Palabora Mining Company (PMC).
The companies say that together, they will develop one of the country’s largest private renewable energy projects.
Under the PPA, the Marula Green Power initiative will deliver 132MWp of solar photovoltaic capacity, a 360MWh battery energy storage system, and a dedicated 132kV transmission line to wheel clean power to PMC’s mining operations in Ba-Phalaborwa.
According to Mzansi Energy Consortium, the grid-forming solution will provide stable, dispatchable electricity, while supporting South Africa’s broader energy transition.
“This strategic partnership with Mzansi Energy Consortium marks a significant milestone in PMC’s commitment to sustainable operations and energy security,” says Itumeleng Ngoae, PMC executive manager for asset management, safety, health, environment and quality.
“Wheeled solar power, coupled with battery storage, aligns with our goals to reduce carbon emissions and operating costs, while strengthening community development and sustainable mining in Ba-Phalaborwa.”
Mzansi Energy Consortium adds that the facility will comply with all regulatory requirements, including the environmental impact assessment (EIA), Eskom grid connection protocols and approvals from the National Energy Regulator of South Africa.
“This will be South Africa’s first grid-forming renewable project and one of its largest private-sector IPP [independent power producer] initiatives,” says Wessel Wessels, chief operations officer at Mzansi Energy Consortium and CEO of Journey2Green.
“We’re building a dedicated 132kV line to enable wheeling via Eskom’s grid, while incorporating advanced energy management systems and significant battery storage capacity. Partnering with Huawei, we’ve adopted an integrated factory-to-field model that shares technology risk across the lifecycle – from design through to operations.”
PMC notes that the solar site was carefully located outside its operational area to avoid interference with the Kruger National Park’s protected wildlife.
It points out that a full EIA has been completed to ensure environmental compliance and system efficiency, addressing the high soiling levels in the region.
“Rand Merchant Bank has been appointed mandated lead arranger for the project’s debt financing,” adds Tsatsi Mahlatsi, CEO of Mzansi Energy Consortium.
“We expect financial close in Q4 2025, construction to begin shortly thereafter, and commercial operations to commence in early 2027. This project supports our long-standing commitment to South Africa’s energy transition and will deliver significant carbon reduction and grid stability benefits.”
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