Dubai-based global energy firm AMEA Power has signed a 25-year power purchase agreement (PPA) with green energy retailer GreenCo Power Services, paving the way for the construction of an 85 MW solar PV power plant in the North West Province of South Africa.
Once completed, the project will generate 220 GWh of clean electricity per annum which will be integrated into the national grid. The project will be financed by South Africa’s Standard Bank, with construction of the facility expected to start in the third quarter of 2023.
Also read: McCain farm of the future set to transform potato farming in South Africa
AMEA Power is set to adopt a fast-track project development model for the initiative as part of the firm’s commitment to accelerating renewables penetration to address South Africa’s current electricity crisis.
Ana Hajduka, CEO of GreenCo, stated that, “The signing of this PPA marks a tremendous shift towards the sustainable development of the national and regional power markets. GreenCo and AMEA Power have within a few months made immense strides and paved the way for an efficiently structured project development and offtake model to be rolled out in South Africa.”
Also read: Seychelles and South Africa startups take lion share of blockchain funding
The milestone follows AMEA Power securing sites for the construction of up to 1 GW of renewables capacity in South Africa. The firm is developing the 120 MW Doornhoek PV solar plant in Klerksdorp as part of a 20-year PPA with state utility Eskom and has also launched its new regional energy hub in Johannesburg while seeking partnership opportunities with commercial and industrial consumers within the renewables space.