IPP Globeleq Signs PPAs for 450 MW Solar Power in South Africa

Tracing trajectory of renewables

Globeleq, the key partner in the Ikamva Consortium, has said that it has reached legal close on six solar energy projects under South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The solar projects total to 450 MW in capacity.

Globeleq, the Africa-focused independent power producer (IPP) – is majority partner in the Ikamva Consortium. Together with wind and solar developer Mainstream Renewable Power, Globeleq is leading the consortium.

The coming of the legal close means that the power purchase agreements (PPAs) with South African electricity public utility Eskom, and the implementation agreements with the Department of Mineral Resources and Energy (DMRE), now stand inked. The Ikamva Consortium from here will strive for the development of the renewable energy projects and move them to commercial close.

As per reports, the development of the renewable energy projects will start in 2023, which is next year. The solar energy projects under the scheme of things are expected to produce power in 2025.

In October 2021, the Department of Mineral Resources and Energy (DMRE) awarded Preferred Bidder status to the consortium. The official statement by Globeleq held that the project will see the development of six 75-MW solar energy projects. All of the projects are located in the Free State Province. They will also be the largest renewable energy projects in the South African province to date.

The six solar projects are part of a 1.27-GW solar and wind portfolio. The projects in question are Kentani, Leliehoek, Klipfontein, Klipfontein 2, Braklaagte and Sonoblomo. All of the projects will attract an investment of about $524 million, said Mainstream Renewable Power.

Mike Scholey, Chief Executive Officer (CEO), Globeleq, said, “Africa’s solar potential is enormous, and we commend the Government of South Africa for continuing to push the renewable agenda to provide clean and stable electricity to the grid and support the country’s decarbonization and renewable energy targets.”