After the landmark legislation was passed in August 2021 to raise the licensing limit from 1MW to 100MW, the first two registered 100MW energy projects have reached financial close.
SOLA Group and African Rainbow Energy reached financial close on 200MW solar PV projects for Tronox Mineral Sands, making these the largest corporate renewable energy Power Purchase Agreement in Africa.
The financial close of the projects happened less than 6 months after the power purchase agreements were signed in mid-March 2022. Construction of the projects will now begin.
A significant first for South Africa’s renewables industry
The purpose of the projects is to fulfill the obligations of a bilateral electricity sales agreement between SOLA Group and Tronox Mineral Sands. These renewable energy facilities will supply electricity, through wheeling arrangements with Eskom, to five Tronox facilities in the Western Cape and KwaZulu-Natal for their own use. Tronox’s operations are highly energy intensive and will ensure a 13% reduction in global carbon emissions.