Dubai-based renewable energy company AMEA Power has signed a 25-year power purchase agreement (PPA) with GreenCo Power Services, based in Zambia, for the energy offtake from an 85 MW solar photovoltaic (PV) power plant in South Africa.
The 85 MW solar PV power plant will be financed by Standard Bank of South Africa and based in North West.
The companies expect the project to reach financial close and start with construction in the third quarter of the year, before supplying power to the national grid early in 2025.
The plant is poised to generate about 220 GWh/y of clean electricity.
AMEA Power, GreenCo and Standard Bank have also entered into a cooperation agreement that seeks to develop a fast-track model to stimulate the onboarding of renewable energy generation in South Africa. This will help mitigate the current electricity crisis that is crippling businesses, households and the economy.
AMEA chairperson Hussain Al Nowais says AMEA is on track to deliver several large renewable energy projects in South Africa in coming years, as part of the group’s goal to deliver clean energy across Africa.
The company will invest in different clean energy solutions in South Africa, while stablishing strategic partnerships with local companies.
GreenCo CEO Ana Hajduka notes that the signing of the PPA marks a shift towards the sustainable development of the national and regional power markets.
She adds that GreenCo and AMEA have, within the span of a few months, made immense strides in rolling out a structured project development and offtake model in South Africa.
South Africa aims to increase the share of renewable energy in its energy mix from 11% to 43% by 2030.
To support its growth in South Africa, AMEA recently opened a new regional hub in Johannesburg, with employees that will focus on business development and project execution in the country.
Among AMEA’s existing projects being developed in the country is a 120 MW solar PV project, near Klerksdorp, which will generate more than 325 GWh/y of clean electricity.
The company has also secured a few sites suitable for the development of a further 1 GW of renewable energy projects, which the company will bid into future Renewable Energy Independent Power Producer Procurement Programme bid windows.