State-owned Energy Development Corporation agreed a deal with independent power company Nu Planet yesterday to build a new hydroelectric power plant in South Africa, according to BusinessDay.

The US$7M project will generate 4MW for the Bethlehem community in eastern Free State.

Minerals and Energy Minister Phumzile Mlambo-Ngcuka is quoted on BusinessDay as saying the project will help fulfil South Africa’s commitment to use 10,000GWh of renewable energy by 2013, a pledge made during the 2002 World Summit.

Construction of the plant will begin before the end of the year, and it is due to become operational by 2007.