MEC Sakhumzi Somyo
The R2-billion Kouga wind farm, located at Oyster Bay in the Eastern Cape, was officially opened on Friday by Economic Development, Environmental Affairs and Tourism MEC Sakhumzi Somyo.
The power plant, which entered commercial operations earlier this year, incorporates 32 Nordex turbines and is expected to produce 300 GWh of electricity yearly.
The 80 MW project was selected following the first bid window of the South African government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
Following four REIPPPP bid windows, 92 renewables projects, with a nominal capacity of 6 243 MW, have been procured and bidding for a so-called “expedited” round to procure a further 1 800 MW will close on October 1.
The Kouga project was supported by local and international investors, including STANLIB Asset Management, Evolution One Fund, Red Cap Investments, Eurocape Renewables, Afri-Coast Engineers and a local community trust financed by the Industrial Development Corporation (IDC). The Kouga Wind Farm Community Development Trust holds a 26% shareholding.
The investors secured long-term debt funding of about R1.6-billion for the project from Standard Bank, Nedbank, Liberty, Mergence and the IDC.