Final hurdle cleared for two wind farms in Northern Cape
After achieving financial close last week, two 140MW wind farms that were among the winners in Bid Window 5 are ready to start construction.
EDF Renewables in SA achieved financial and commercial close on two of the three projects the company will develop in the state’s Renewable Independent Power Producer Programme (REIPPP) Bid Window 5. The three wind farms will have a total installed generation capacity of 420MW.
They are the first wind energy deals to reach conclusion since round 4 of the REIPPP in 2018.
EDF Renewables have already signed 20 year-purchase agreements with Eskom and an implementation agreement with the department of mineral resources & energy.
The wind farms will be in the Umsombomvu local municipality in the Northern Cape. The third 120MW wind farm is expected to reach financial close by January.
“Closing these deals is the result of a formidable collaboration started 10 years ago, for which the team deserves huge congratulations. Our next aim is to construct these wind farms safely and on time, to be able to deliver this much-needed power into the national grid before November 2024,” CEO Tristan de Drouas said.
The two wind farms will cost about R7.7bn to build, according to Absa, which acted as the joint mandated lead arranger and lender for the projects.
The total project capital cost for all three 140MW wind farms was estimated at R11.5bn.
“Absa continues to support the SA renewable energy programme, having now financed over 3.5GW of projects since the inception of the [REIPPP] programme more than a decade ago,” said Shaun Moodley, from Absa’s resource & project finance team.
Each project will comprise 26 wind turbines, with a height of 124m and a blade length of 83m. EDF Renewables will also be constructing the Koruson Main Transmission Substation on behalf of Eskom, under a selfbuild agreement, which will be transferred to Eskom upon completion.
EDF Renewables is a subsidiary of EDF Renouvelables, the renewable energy arm of French state-owned utility EDF.