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Ikamva consortium to build 1.27 GW of new wind, solar in South Africa

3rd November 2021

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

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Wind and solar power consortium Ikamva will build 12 new wind and solar projects with a combined capacity of 1.27 GW have won preferred bidder status in Bid Window (BW) 5 of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The 12 projects, across onshore wind and solar, will generate enough clean energy to power a third of the yearly electricity demand of the City of Cape Town, and represent half of the total allocation in the BW, which was the most competitive to date and was almost four-times oversubscribed, wind and solar power multinational Mainstream Renewable Power says.

The Ikamva consortium, which means "the future" in isiXhosa, will deliver six onshore wind projects and six solar photovoltaic projects, including the first REIPPPP project in KwaZulu-Natal. The consortium brings together a range of expertise, led by Mainstream’s team of more than 100 African professionals and comprises independent power producers Globeleq, Africa Rainbow Energy & Power and H1 Holdings, as well as local community trusts.

The Department of Mineral Resources and Energy indicated that, together, the 25 projects under BW 5 of the REIPPPP will inject about R50-billion into the economy through private sector investment and will create more than 13 000 job opportunities.

The projects will produce about 4 500 GWh/y of green electricity, helping to avoid nearly five-million tonnes of carbon dioxide emissions a year once fully operational. They will provide South Africa with critical, low-cost, indigenous power and help deliver a just transition towards its clean energy and climate goals.

“The Ikamva consortium has assembled world class local and international partners to achieve a competitive position for these projects. It has focused on delivering a competitive tariff, and significant shareholding and participation by black economic empowerment groups.

"Through Globeleq’s operational wind and solar projects and these new projects in South Africa, we continue to support the government’s sustainable energy future and create shared value for all stakeholders,” says Globeleq chief development officer Jonathan Hoffman.

The projects awarded include three wind projects in the Northern Cape, two wind projects in the Western Cape and the first wind project in KwaZulu-Natal. The solar projects are all located in the Free State province, where no renewable projects have been built as yet as part of the REIPPPP.

Further, as a result of this award, Mainstream will double the size of its South African team and will be actively recruiting another 100 South Africans to support the engineering and construction of the 12 projects, the company says.

This will make Mainstream the largest pure-play renewables employer in Africa. The win underpins Mainstream’s strategy of building true scale across its global platforms, with the company’s global portfolio now at 16.2 GW. It is the latest demonstration of Mainstream’s accelerated growth trajectory following the 75% acquisition by Aker Horizons earlier in 2021, as well as the announcement of the new 1 GW Nazca Renovables platform, in Chile, in July, the company says.

“We are delighted to be chosen to contribute further to the decarbonisation of South Africa. It is a demonstration of faith in Mainstream’s track record of efficient and reliable delivery, not only here in South Africa but also internationally where we are currently building ten wind and solar PV projects simultaneously, totalling 1.35 GW in Chile. Our latest win will deliver enormous social, economic and environmental benefits for South Africa,” says Mainstream Renewable Power Africa GM Hein Reyneke.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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