South African diversified resources company Exxaro and India-based power utility Tata Power Company, through its subsidiary Khopoli Investments, are expected to launch a 50:50 joint venture (JV) energy company next month.
The initial project pipeline of Cennergi, which will be based in South Africa, focused on renewable energy projects in the country, with a strategy to create a balanced portfolio of energy-generation assets.
Exxaro CEO Sipho Nkosi previously told Mining Weekly Online that the JV was in the process of submitting five renewable energy projects – two solar and three wind – under the Department of Energy’s (DoE’s) ‘request for qualification and proposals for new generation capacity’ in the second bidding window, which closes on Monday.
The DoE was seeking to procure 3 725 MW of renewable energy capacity from independent power producers (IPPs) between 2012 and 2016.
Nkosi expected Cennergi to play a key role in the African electricity generation market, with the aim of becoming a leading cleaner energy IPP in Southern Africa.
Cennergi would investigate the feasibility, development, ownership, operation, maintenance, acquisition and management of electricity generation projects in South Africa, Botswana and Namibia.
“The joint venture is consistent with our strategy of pursuing exploration opportunities for energy development in growing markets,” said Tata Power MD Anil Sardana in a statement.
He added that, together with Exxaro, the company would develop efficient, high-quality and sustainable projects that would bring significant benefits to the region and local communities.