A consortium led by Ireland-based Mainstream Renewable Power has secured ZAR6.6bn ($525m) financing for the development of two wind projects, with a combined capacity of 250MW, in South Africa.

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Image: A Mainstream employee at a site. Photo: courtesy of Mainstream Renewable Power.

Other equity investors in the projects include African Rainbow Energy and Power, H1 Holdings, Lekela, Old Mutual Life Assurance and local community trusts. IFC and the Rockefeller Brothers Fund also form part of the Mainstream consortium.

The consortium has been awarded contracts by the Department of Energy in South Africa under the fourth round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) for the wind farms.

Mainstream plans to commence construction of the 140MW Kangnas project, near Springbok in the Northern Cape, as well as the 110MW Perdekraal East facility, north-east of Ceres in the Western Cape, later this month.

Mainstream Africa general manager Hein Reyneke said: “Our team here in South Africa is really excited to reach financial close and start constructing these two projects, which will bring a 1.1 billion Rand community investment over 20 years once they start operating in 2020.

“Importantly, we are looking forward to the results of the expedited fourth round of the REIPPPP being announced soon, as well as further rounds, which are vital to securing a sustainable long-term, least-cost energy plan for the country.”

Siemens Gamesa has been selected to supply and install the wind turbines for the wind projects while consortium of Concor and Conco has been selected as construction contractor.

ABSA arranged the debt for the projects whereas Simmons & Simmons and White & Case acted as lenders’ legal advisor and Fasken and Stoel Rives served as the sponsors’ legal counsel.

Under the REIPPPP program, Mainstream has been awarded a total of 848MW of wind and solar projects since the first round launched in 2011.

Till date, the firm completed five wind and solar PV plants, with combined generation capacity of almost 600MW, under the program.