Independent power producer (IPP) Pele Green Energy (PGE) has reached financial close for two solar photovoltaic (PV) power plants under bid window five of South Africa’s Renewable Energy Independent Power Producer Procurement Programme.
The company says it has signed power purchase and implementation agreements with Eskom and the Department of Mineral Resources and Energy.
According to the IPP, the two projects, each at 75MW contracted capacity, will be built and operated by Engie in partnership with Pele Green Energy.
The Grootspruit PV will be constructed in the Free State, while Graspan Solar PV will be built in the Northern Cape.
PGE notes the construction will begin early in 2024 and the plants are expected to be commissioned by the end of 2025.
Knowledge Pele, Pele Energy Group’s research and development company, will be responsible for implementing economic development structures for both communities, it adds.
Ronald Chindeka, head of investments and funding for PGE, says: “As a South African IPP, we are immensely proud to have successfully reached financial close alongside Engie in support of government’s renewable programme.
“The addition of these two projects brings Pele Green Energy’s total nameplate capacity to 2 076MW of renewable energy projects in various stages of financial close, construction and operations.”
Léa Giroux, senior business developer at Engie Southern Africa, comments: "The financial close of these two pivotal solar projects marks a significant milestone in our journey towards a more sustainable energy future in South Africa.
“I am thrilled to witness the transformation that these solar plants will bring, both in terms of renewable energy generation and community development.”
Adhila Mayet, head of project development for Pele Green Energy, concludes: “These two solar PV power plants will be adding value to the Grootspruit and Graspan communities through not only the power that they will be generating, but through the community trust that will be set up to ensure the community directly benefits from these projects.”