African renewable energy producer BioTherm Energy has completed financial close for its 284MW portfolio that includes wind and solar projects in South Africa.
The projects are part of the Fourth Round of the South African Renewable Energy Independent Power Producers Programme (REIPP). The portfolio includes four projects, whose construction will begin shortly and they are expected to be fully operational in 2020.
These projects include 120MW Golden Valley wind project. This project is expected to reach commercial operations in the fourth quarter of 2020. Engineering procurement and construction (EPC) works are being handled by Goldwind for this project.
The second is the 32MW Excelsior wind project, which is expected to begin commercial operations by next year’s last quarter. EPC services will be provided by Goldwind.
The third is the 86MW Konkoonsies II solar project and it is expected to start commercial operations in the first quarter of 2020. EPC services will be provided by ET Solutions.
The fourth project is the 45MW Aggeneys solar project, which is expected to begin commercial operations in the third quarter of next year. ET Solutions will provide the EPC services.
BioTherm Energy stated that the total cost of the portfolio is about $500m. All these four projects have 20 year inflation linked power purchase agreements (PPAs) with South African national utility Eskom and are backed by sovereign guarantees provided by the National Treasury.
These projects are expected to create local jobs during the construction phase.
Denham Capital international power team director and BioTherm board member Steven Mandel said: “We are very pleased with the sustained momentum BioTherm has been able to maintain in building its already strong position as a leader in South Africa’s renewables sector.
“Despite recent uncertainty in the market, the team has worked very effectively with all stakeholders to ensure these important projects are progressed, which will play a role in securing much needed clean energy for South Africa’s future, while economically enabling the surrounding local communities.”