Enel Green Power has been awarded two additional energy supply contracts for two wind farms totaling 280 MW in a South African public tender.
The projects were awarded in the fourth phase of the South African government's Renewable Energy IPP Procurement (REIPPP) programme. This brings the total capacity up to 1,200 MW awarded to Enel Green Power in South African public tenders.
The contract consists of the following two projects:
Both endeavors will be built in areas of the Northern Cape Province that have significant wind resources and are expected to enter commercial operation by 2018.
Eskom, the South African utility, will sign a 20-year power purchasing agreement (PPA) with the company.
Enel Green Power will be investing a total of approximately €340 million (US$384 million) in the new projects, in line with growth targets set out in its current strategic plan.
In compliance with the REIPPP programme rules, Enel Green Power participated in the tender through vehicle companies in which it holds the majority of shares, in partnership with major local players.
Once completed, the two facilities will be able to generate around 1,000 GWh per year.
Francesco Venturini, CEO of Enel Green Power, has stated:
"With the award of this additional wind capacity, Enel Green Power has consolidated its position as the largest private renewable energy player in the whole of Africa.
South Africa, where electricity demand is still expanding rapidly and the economy is growing, with a stable regulatory and legislative framework, maintains its position as a strategic country for our company. We are ready to more than double our investment there, increasing it to more than 1.3 billion euros from 600 million euros."
The new projects will join the 10 MW Upington solar power plant in operation in the country and the 513 MW of projects for which 20-PPAs with Eskom have been signed, following the third phase of the REIPPP programme in 2013. These projects are the Aurora (82.5 MW), Tom Burke (66 MW), Paleisheuwel and Pulida (both 82.5 MW) solar facilities, and the Gibson Bay (111 MW) and Nojoli (88 MW) wind farms.
IPP Journal has recently been heavily reporting on South Africa.