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Dubai-based AMEA Power has finalised an offtake agreement with GreenCo Power Services for the development of an 85MW photovoltaic (PV) solar power plant in the North West Province of South Africa.

Standard Bank of South Africa is financing the scheme. Financial close and the commencement of construction are expected during the third quarter of this year.

The plant is due to start delivering power into the national grid in early 2025 and will generate around 220GWh of clean energy a year.

GreenCo Power Services, a private energy trader and member of the Southern African Power Pool, has signed a 25-year power purchase agreement (PPA) for the energy.

@AmeaPower has executed a 25-year PPA with @AfricaGreenCo, a private energy trader and member of the Southern African Power Pool (SAPP), for the energy offtake from the 85MW solar PV power plant.

Learn More: https://t.co/zs3xOBml7a #SouthAfrica #UAE #RenewableEnergy #solar pic.twitter.com/urXAObmgyW

— AMEA Power (@AmeaPower) April 25, 2023

The companies have committed to fast tracking the development of renewables projects in South Africa to help alleviate the country’s long-standing power shortage.

AMEA Power plans to deliver several large renewable energy projects in the coming years. The firm’s chairman Hussain Al Nowais commented in a statement: “The widespread electricity shortages in South Africa are impacting people’s everyday lives and crippling businesses.” 

To support its growth in South Africa, AMEA Power has opened a new regional hub in Johannesburg, which will initially accommodate 10 full-time members of staff. The employees will be recruited from South Africa, and will focus on business development and project execution across the country.   

In late 2022, AMEA Power was awarded a 120MW PV project as part of the sixth bid submission phase of South Africa’s Renewable Energy Independent Power Producer Procurement (REIPPP) Programme. The Doornhoek PV scheme will sell electricity to the state utility, Eskom, under a 20-year PPA.

AMEA Power is the majority shareholder in the US$120 million project, and has partnered with a local consortium of Ziyanda Energy and Dzimuzwo Consulting, both wholly owned by African women and committed to meaningful socio-economic development.

AMEA Power and its partners 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 plant, which is to be located near the town of Klerksdorp in the North West Province, will generate more than 325GWh of clean energy a year, enough to supply around 25,000 households. Construction of this project is due to begin by mid-2023 and will use more than 45% locally sourced materials and resources.

Earlier this month, #AMEAPower was awarded through a competitive tender a 120MW #solar PV project in #SouthAfrica. The US$120m project will generate more than 325GWh of #cleanenergy per year and power around 25,000 households. Learn more at https://t.co/bLXBaB5Yhq pic.twitter.com/fveUtulcvO

— AMEA Power (@AmeaPower) December 28, 2022

AMEA Power has secured sites suitable for the development of a further 1GW of renewable energy projects in South Africa, which the company will bid into future REIPPP phases or use to serve private sector consumers. The firm is exploring opportunities with a number of commercial and industrial entities across South Africa to provide them with access to renewable energy.

AMEA Power says it has a clean energy project pipeline in excess of 6GW across 16 countries. It has more than 1.2GW of clean energy projects either in operation or under construction in Burkina Faso, Egypt, Jordan, Morocco and Togo, and is exploring further opportunities for wind, solar, green hydrogen and energy storage in Africa.

South Africa aims to increase the share of renewables in its energy mix from 11% to 41% by 2030. The country also plans to decommission 8-12GW of coal-fired power plants over the next decade.

Top Photo: PPA signing ceremony. (Supplied)