Investec Corporate and Institutional Banking and Nedbank Capital on Monday announced the financial close of a new 74 MW solar photovoltaic (PV) project in the Northern Cape.
Acciona Energy South Africa and Aveng Africa aimed to build and operate the solar PV plant – through R1.8-billion of senior debt arranged by the institutions – and sell the full capacity to State-owned power utility Eskom under a 20-year power purchase agreement.
The parties would build the power-generating facility, which would use 319 600 crystalline solar panels, on a 620 ha site 17 km north-west of the town of Kathu.
The project, which would be ring-fenced in a special purpose vehicle, Windfall 59 Properties, was expected to be completed by 2014, according to earlier reports from Acciona.
The solar project, in conjunction with another renewable energy initiative, the Gouda wind park, in the Western Cape, was the group’s first investment into South Africa.
Acciona Energy South Africa would hold a 51% shareholding in the Kathu project and Aveng Africa 29%. The Dibeng Trust and nonprofit organisation Soul City would each have a 10% stake in the project on financial close.
The solar project was Investec’s third and Nedbank Capital’s fifth, as lead arrangers, in the second round of government’s Renewable Energy Independent Power Producer Procurement Programme, which selected the preferred bidders last year.