Palabora Mining Company (PMC) has signed a renewable energy deal with local independent power producer (IPP) Mzansi Energy Consortium to develop a 132MWp solar photovoltaic (PV) plant and battery energy storage system.
According to a statement, once deployed, the solar plant will be one of SA’s largest private IPP initiatives, providing the mine with security of power supply and significant cost savings, while creating jobs in Limpopo.
The power plant, named Marula Green Power, will be capable of storing 310MWh of electricity and will be rolled out over two stages. Stage one will be the construction phase and stage two will be the operation and maintenance phase.
The project is expected to reach financial close in the second quarter of 2023 and commence operations in the second quarter of 2024, although the current timelines are preliminary and may change based on the outcome of the detailed feasibility study.
Wessel Wessels, CEO of Journey2Green, a founding partner in Mzansi Energy, says a long-term power purchase agreement will be finalised between the parties at the end of the detailed feasibility study in six to eight months from October 2022 to the end of May 2023.
“Mzansi Energy will design, finance, install, operate and maintain the plant for 12 years. The plant will be based within the municipal jurisdiction of Ba-Phalaborwa, Limpopo, just outside Namakgale township, and will be approximately 20km from the mine. The location is strategically chosen to allow for direct supply to the mine without connection to the Eskom grid,” Wessels explains.
Mzansi Energy provides cost-effective renewable energy solutions to business customers and end-users.
According to Mzansi Energy, the project is one step towards helping SA address its electricity challenges, with the Marula Green Power plant expected to contribute significantly to Eskom’s Just Energy Transition (JET).
The JET initiative was established in 2020 and has made significant strides to progress the evolution for transition towards a cleaner and greener energy future in SA, according to Eskom.
Mzansi Energy says it has partnered with the local traditional authority as per the study performed for identification of the ideal location, subject to the final environmental impact assessment. The authority will host the solar power plant on its land and enter into a long-term lease – which is conditional on specific socio-economic benefits for all local Ba-Phalaborwa communities in areas such as business opportunities for SMMEs, skills transfer/development, job creation, etc.
During the project rollout phases, many direct and indirect employment opportunities will be created through the Marula Green Power project, while local suppliers in the Ba-Phalaborwa region will enjoy new business opportunities, notes the company.
“Mzansi Energy has developed a community development roadmap to stimulate the local economy through skills development and employment of local people. This applies during the development, construction and operation of the solar PV plant in the Ba-Phalaborwa area.
“Based on initial estimates, the project could create about 500 to 750 fixed-term employment opportunities during construction, and approximately 35 permanent jobs during the 12-year operation and maintenance period,” says Mzansi Energy.
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