https://www.engineeringnews.co.za
Africa|Energy|Eskom|Financial|Infrastructure|Power|Projects|Renewable Energy|Renewable-Energy|Resources|Services|Solar|Maintenance|Infrastructure|Operations
Africa|Energy|Eskom|Financial|Infrastructure|Power|Projects|Renewable Energy|Renewable-Energy|Resources|Services|Solar|Maintenance|Infrastructure|Operations
africa|energy|eskom|financial|infrastructure|power|projects|renewable-energy|renewable-energy-company|resources|services|solar|maintenance|infrastructure|operations

Globeleq completes debt restructuring for Aries, Konkoonsies solar plants

18th January 2024

By: Sabrina Jardim

Creamer Media Online Writer

     

Font size: - +

Independent power company Globeleq has completed a $37-million senior debt restructuring of its 11 MW Aries and 11 MW Konkoonsies solar plants, in the Northern Cape.

The debt restructuring was led by financial services firm Standard Bank.

Globeleq previously completed the debt restructuring of the Jeffreys Bay Wind Farm, in the Eastern Cape, and the De Aar and Droogfontein solar plants, in the Northern Cape, in August 2021, and the Soutpan solar plant, in the Free State, in January 2022.

By lowering the cost of debt for the projects, the restructuring allows for a significant reduction in wholesale electricity prices from the plants; creates a more efficient capital structure, enabling release of funds for shareholders to reinvest in the power sector; and accelerates equity distributions to the Aries and Konkoonsies communities and black economic empowerment shareholders.

Both Aries and Konkoonsies began operating in 2014 as part of South Africa’s Renewable Energy Independent Power Producer Procurement Programme. Globeleq acquired the majority interest of the plants in 2019.

Globeleq has managed the full scope of operations and maintenance at both plants since May 2021, achieving an average availability of over 99%.

“Restructuring the financing terms of these projects continues to be of significant benefit to [State-owned utility] Eskom and to South African consumers. We have reduced the cost of power at these two plants by around R129-million over the remaining ten years of the power purchase agreement.

“Overall, Globeleq has now restructured six of our eight plants in South Africa using the Department of Mineral Resources and Energy’s IPP Office Refinancing Protocol. These efforts demonstrate our desire to be a long-term producer of cost-effective renewable power in South Africa to benefit energy users and encourage investment in the renewable energy sector,” says Globeleq CEO Mike Scholey.

“We are pleased to have partnered with Globeleq again and taken over the debt financing of the Aries and Konkoonsies solar projects, allowing for cost savings to be passed through to Eskom and, ultimately, to the end-consumers.

“Standard Bank is committed to being a leading player in the energy sector in South Africa,” adds Standard Bank energy and infrastructure finance executive Sherrill Byrne.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Hanna Instruments Image
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

SEW-EURODRIVE at Nampo 2024
SEW-EURODRIVE at Nampo 2024
21st May 2024
Uniclox at Nampo 2024
Uniclox at Nampo 2024
21st May 2024
Dachser South Africa at Nampo 2024
Dachser South Africa at Nampo 2024
21st May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.306 0.355s - 154pq - 2rq
Subscribe Now