EDF Renewables Achieves Financial & Commercial Close On Phezukomoya And San Kraal
EDF Renewables Achieves Financial & Commercial Close On Phezukomoya And San Kraal. Following the winning of 3 Koruson 1 projects on the Renewable Independent Power Producer Programme (REIPPP) Bid Window 5 projects, EDF Renewables in South Africa achieved financial and commercial close on two of the projects, Phezukomoya and San Kraal, totalling 280 MW, on 10 November 2022. This step represents the first wind energy deals to reach conclusion since Round 4 of the REIPPP in 2018.
After the signing of the 20 year-PPAs with South African electricity public utility Eskom, and the signing of the Implementation Agreement with the Department of Mineral Resources and Energy (DMRE) on 22 September 2022, this milestone means that all stakeholders are aligned, and construction of the wind farms located in the Umsombomvu Local Municipality, on the boundary of the Eastern Cape and Northern Cape Provinces, can start.
“Closing these deals, is the result of a formidable collaborative effort started 10 years ago, for which the project team deserves again a huge congratulation. Our next objective now becomes 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,” said EDF Renewables in South Africa CEO, Tristan de Drouas. EDF Renewables’ remaining REIPPP Bid Window 5 Koruson 1 project, Coleskop, is expected to reach financial close before the end of January 2023. When the final deal reaches closure, the three projects, each with installed capacities of 140 MW, totalling 420MW, will commence at the boundaries of the Eastern and Northern Cape provinces. The low-carbon renewable electricity produced each year by the three wind farms will help to meet the electricity needs of approximately 193,000 South African households.
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 (MTS) on behalf of Eskom, under a self-build agreement (SBA), which will be transferred to Eskom upon completion. The projects will sell power to Eskom under a 20-year PPA. In addition, the Koruson Main Transmission Substation will be constructed on behalf of Eskom and transferred to Eskom on completion. “This project confirms our long-term goals in the country, adding to the almost 1 GW that EDF Renewables already develops, builds, or operates in South Africa, supporting ours and government’s ambitions to develop low-carbon energy solutions for the future,” said de Drouas.
Through these projects, EDF Renewables has committed to providing 2230 job years, which includes 400 full-time jobs to South African citizens during the construction period of two years, and 35 full-time jobs during the operating period of twenty years. Approximately 40% of the project value will be comprise local content, and during operations, 1.2% of revenue generated by the projects will be applied to socio-economic development initiatives for nearby local communities. The projects, developed by a highly skilled consortium led by EDF Renewables in South Africa, together with its local BEE partners, H1 Holdings, GIBB-Crede and a local community trust, were awarded preferred bidder status in October 2021, under Round 5 of the Renewable Energy Independent Power Producer Programme.
EDF Renewables in South Africa, the lead sponsor in the transactions, is a locally based, fully integrated independent power producer that develops, finances, builds, owns and operates commercial renewable energy generation facilities, including wind, solar PV, battery storage and hybrid solutions. EDF Renewables in South Africa is a subsidiary of, EDF Renouvelables, the renewable energy arm of the global utility EDF.
