From Creamer Media in Johannesburg, this is the Real Economy Report.
Sashnee Moodley:
Renewable-energy project developer Solar Capital last month inaugurated the second phase of its De Aar solar farm project, in the Northern Cape, with De Aar 3 adding 90 MW of capacity to the overall project.
This was in addition to the first phase of the project, the 85 MW De Aar 1 solar farm, which came on line in August 2014. David Oliveira has the story.
David Oliveira:
Media and dignitaries were invited to attend the inauguration of the 175MW solar farm, which Solar Capital chairperson Paschal Phelan noted would provide between 75 000 and 100 000 South African homes.
Solar Capital chairperson Paschal Phelan:
David Oliveira:
Department of Energy Minister Tina Joemat-Pettersson congratulated Phelan on delivering the project, which she said could be the “blueprint” for further solar projects in South Africa and that the project showcased the Northern Cape’s potential to be the solar capital of the world.
Department of Energy Minister Tina Joemat-Pettersson:
David Oliveira:
Joemat-Pettersson asserted that the success of this project highlighted the potential for the Northern Cape to become a leader in solar energy production, stating that the Northern Cape had the capacity to become the “solar capital of the world”.
Meanwhile, Northern Cape MEC McCollen Ntsikelelo Jack pointed out the importance of solar energy in diversifying the economy of the province.
Northern Cape MEC McCollen Ntsikelelo Jack:
David Oliveira:
An investment of R5-billion was made into the first two phases of the De Aar project, with 25% of the investment equity financed by local companies and the Public Investment Corporation. The remaining 75% had been financed through loans from Standard Bank South Africa and Deutsche Bank in London, in the UK.
At its peak, 2 000 people were employed, with 90% from the local community. There were currently about 220 people working on site, with a further 120 people to be employed to maintain the solar farm once the final two phases of the project were complete.
The next phase, the 86 MW De Aar 2, formed part of the extended Renewable Energy Independent Power Producer Procurement Programme 4 bid.
Solar Capital chairperson Paschal Phelan:
Sashnee Moodley:
Other news making headlines this week:
An overnight passenger-rail service between Lobatse, in the south of Botswana, to Francistown, about 500 km to the north-east, on the Zimbabwe border, is being reinstated using modern coaches built by Transnet Engineering, in South Africa.
At a recent launch event in Lobatse, President Ian Khama outlined government’s vision for the reintroduced service, which was suspended in 2009, owing to the poor state of the previous coaches.
President Ian Khama:
Sashnee Moodley:
That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.