South Africa to receive financing of six solar power plants

South Africa is set to receive financing of six solar (PV) power plants from The Multilateral Investment Guarantee Agency (MIGA) which issued guarantees covering the construction, ownership, operation and maintenance of the plants.

Confirming the reports was MIGA EVP and CEO Keiko Honda, who said that the six plants are projected to generate a combined 1,000GWh of power that will be sold to Eskom which is South Africa’s state-owned utility, under 20-year PPAs.

“By covering not only greenfield, but also brownfield projects, we are encouraging additional investments in renewable power. We are helping decrease perceived levels of risk and increasing capacity for sponsors,” said the CEO.

The six solar (PV) power plants

The guarantees cover 90% of investments by Scatec Solar ASA for up to 15 years against the risks of Breach of Contract and Transfer Restrictions and Convertibility.

Three of the plants (Kalkbult, Dreunberg and Linde) have been in operation since 2013 and 2014, while the others (Sirius, Dyason’s Klip 1 and Dyason’s Klip 3) are currently under construction.

Diversification of South Africa’s energy mix
These plants will contribute to the diversification of South Africa’s energy mix, helping avoid 17 million tons of GHG emissions.

The solar projects were selected as part of the South African Renewable Energy Independent Power Procurement Programme (REIPPP). The REIPPP has successfully channeled substantial private sector expertise and investment through multiple rounds of bidding into grid-connected renewable energy at competitive prices.