Mainstream Renewable Power to Start Constructing 238MW of Wind and Solar Projects in South Africa with a Combined Investment of Over 500 Million Euro
DUBLIN, November 12, 2012 /PRNewswire/ --
Global renewables developer Mainstream Renewable Power has signed the key Financing, Power-Purchase and Implementation Agreements with the South African Government for its wind and two solar projects in South Africa which have a combined investment value in excess of 500 million Euro. Mainstream will issue Notice to Proceed to its construction contractors this week on all three projects which are scheduled to be fully operational by mid 2014.
The projects comprise the 138MW Jeffreys Bay wind farm located in the Eastern Cape; the 50MW De Aar solar PV farm located in the Municipality of Emthanjeni in the Northern Cape; and the 50MW Droogfontein solar PV farm located near the town of Kimberley in the Northern Cape.
Mainstream has developed these projects over the last four years and was responsible for gaining all consents, grid connections, project finance, construction contracts, equipment procurement and will also manage the full construction programme under the supervision of a joint steering committee with Globeleq.
In November 2011 Mainstream put together and was the lead member in a consortium which bid for licences to build the three projects under the South African Government's first Renewable Energy Independent Power Producer Programme (REIPPP). In December 2011 the Government announced the consortium had been successful in winning all three contracts in the competitive bidding process.
Members of the consortium include emerging markets power company Globeleq as the strategic equity partner, Thebe Investment Corporation (advised by Bridge Capital), local engineering firms Enzani Technologies and Usizo Engineering as well as local community trusts. Old Mutual's IDEAS Managed Fund is an additional consortium member of the Jeffreys Bay Wind Farm.
The projects, which are among the very first to be built in the country have been co-developed with Mainstream's local partner, renewable energy developer Genesis Eco-Energy, which has been active in South Africa since 2001.
"This milestone reinforces the leading position of Mainstream in the South African electricity market," commented Eddie O'Connor Mainstream's Chief Executive. "We have recently raised money on the world markets which we are delighted to commit to developments in South Africa and we look forward to having the 238MW of wind and solar plant operational in mid 2014."
He continued: "The South African government has shown tremendous vision and foresight in creating this new and sustainable industry for South Africa, firmly placing it on the world map for renewable energy generation. Mainstream is fully committed to playing a leading role in the delivery of this vision, to bringing significant socio-economic benefits to the areas in which we're building the projects as well as clean, free-fuel energy to South Africa."
Notes to editors
During construction, the projects are expected to generate hundreds of jobs and once operational, the project revenues will benefit the local communities through socio-economic and enterprise development. The projects are expected to produce 635 GWh of electricity, enough to supply up to 48,000 households and displace approximately 628,000 tons of carbon emissions per year.
About Mainstream
Mainstream Renewable Power is one of the world's leading independent developers of renewable energy projects. With a development pipeline of over 15GW globally it has started construction on its first wind farm in Ireland and is about to start building five further wind and solar projects in South Africa, Chile and Canada this year.
As Europe's leading independent offshore wind developer Mainstream is developing just under 8GW of offshore wind projects in England, Scotland and Germany with 4.45GW of secured grid connection for these offshore projects.
It employs more than 150 experienced staff across four continents with offices in Berlin, Cape Town, Chicago, Dublin, Glasgow, Johannesburg, London, Santiago and Toronto.
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