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AMEA Power, a renewable energy company based in Dubai, announced on 14 December 2022 it had been awarded a contract for the development, financing and construction of a 120-megawatt (MW) solar photovoltaic (PV) project in South Africa.

The project site is located in Doornhoek, a town near the city of Klerksdorp in the North West Province.

The Doornhoek PV project was awarded through a competitive bidding procedure as part of the Sixth Bid Submission Phase of the Renewable Energy Independent Power Producer Procurement (REIPPP) Programme. On completion, electricity generated from the solar PV plant will be sold to the state utility, Eskom, under a 20-year Power Purchase Agreement.

AMEA Power is the majority shareholder in the project and is partnering with a consortium wholly owned by South African women, formed by Ziyanda Energy and Dzimuzwo Consulting, to deliver the project. The project is reported to require an investment of US$120 million. 

Ziyanda Energy provides various services, including project development, due diligence, bid support, and asset management to Independent Power Producers (“IPPs”) and investors in the energy sector.

Dzimuzwo provides consulting services to the energy, water, and infrastructure sectors.

AMEA Power and its partners on the project will form a community trust, which will own a share of the project and contribute towards the economic development of communities close to the project.

The Doornhoek solar PV project will generate more than 325 gigawatt hours (GWh) of clean energy per year and power around 25,000 households. The project is expected to offset 290,000 tonnes of carbon dioxide emissions annually.

Construction works on the project is scheduled to begin by mid-2023, and use over 45% of locally sourced materials and resources.

SIGNING CEREMONY IN RESPECT OF BID WINDOW 5 UNDER THE
RENEWABLE ENERGY INDEPENDENT POWER PRODUCER PROCUREMENT PROGRAMME (REIPPPP) pic.twitter.com/apYE3brgYU

— Department of Mineral Resources and Energy ‏ (@DMRE_ZA) December 8, 2022

Hussain Al Nowais, Chairman of AMEA Power, said: “The awarding of this project represents another major milestone for AMEA Power as it is our first in South Africa and was granted in competition with other major renewable energy players. “Over the next decade, the country will undergo a massive transition in its approach to electricity generation as the network decommissions large amounts of coal generation and adopts cleaner solutions like wind and solar. AMEA Power aims to bring many more clean energy projects onto the grid to help address the energy shortfall, and provide clean, affordable energy to the country in the long term, Al Nowais said.

“Clean energy solutions present tremendous opportunities for delivering investment, job creation, and social development across South Africa. As AMEA Power expands its clean energy footprint across the continent, South Africa will be a major market for the Company and an opportunity to work with local partners to develop projects across the country.”

As part of its long-term planning to reduce its carbon emissions and provide better energy stability across its electricity network, South Africa aims to increase the share of renewable energy in its energy mix from 11% to 41% by 2030. The country plans to decommission 8 gigawatts and 12 gigawatts of coal-fired power plants over the next decade.

AMEA Power has secured several sites suitable for developing a further 1 gigawatt of renewable energy projects in South Africa, which the company will bid into future REIPPP Programs, and provisions for private sector consumers. The company is also exploring opportunities with many commercial and industrial entities across South Africa to provide them with access to renewable energy.

AMEA Power has a clean energy pipeline of over 6 gigawatts across 16 countries and aims to deliver projects across Africa, the Middle East, and other emerging markets.

Top Photo: Solar Energy Plant - Stock Image (Elxeneize | Dreamstime)