US-headquartered power project developer SolarReserve has announced the completion of two South Africa-based 75 MW solar photovoltaic (PV) projects, saying on Wednesday that the plants were fully operational and successfully supplying the South African electric grid with renewable energy.

The Lesedi and Letsatsi projects, located in the Northern Cape and Free State respectively, boast 150 MW of installed capacity and are capable of powering more than 130 000 South African homes with clean energy.

The projects had each executed 20-year power purchase agreements with South African power utility Eskom.

Among the largest project finance transactions ever completed in South Africa, the projects were selected by the Department of Energy (DoE) in the first round of bids under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). 

Financing was provided by a consortium including SolarReserve, the Infrastructural, Developmental and Environmental Assets Managed Fund, investment firm the Kensani Group, green energy supplier GCL-Poly Energy Holdings and energy group Intikon Energy. 

Rand Merchant Bank, the investment-banking arm of FirstRand Bank, acted as mandated lead arranger and bookrunner for the projects’ debt funding requirements.

As mandated under the REIPPPP, the projects set aside a percentage of total project revenues for enterprise and socioeconomic development, which would be invested for the benefit of the local communities, SolarReserve CEO Kevin Smith explained.

“The social and economic benefits that these projects are imparting in South Africa today demonstrate the positive results of close cooperation between the US and South African governments along with private companies in each nation,” he commented.

“We look forward to continuing this positive momentum through collaboration on further projects, including concentrated solar thermal power.”