S Africa's Sola to add 345 MW of renewables under Eskom deal

Oct 28, 2022 01:35 PM ET
  • South African solar power manufacturer Sola Group has signed land lease agreements with utility Eskom Holdings SOC for sites that will end up being home to 2 renewable power parks totalling 345 MW.
S Africa's Sola to add 345 MW of renewables under Eskom deal
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The large-scale plants will certainly be improved underutilised acreage owned by Eskom in Mpumalanga province, Sola Group stated on Thursday. The utility granted the agreements in the preliminary of its land leasing programme which is anticipated to include 2 GW to the grid.

Sola Group intends to sign corporate power purchase agreements (PPAs) for the future output of the plants, either with existing clients or new counterparties. The company said it plans to progress the projects "as fast as possible."

Sola Group was one of the four prospective buyers chosen to sign contracts for 6,184 ha (15,281 acres) of land around Eskom's Majuba and also Tutuka power stations. The listing additionally includes HDF Energy South Africa (Pty) Ltd, Red Rocket SA (Pty) Ltd as well as Mainstream Renewable Power Developments South Africa (Pty) Ltd. The investors will certainly lease the parcels for 25-30 years.

With the land lease tender, Eskom looks for to reduce the country's constricted power system and also secure capacity that will be running after completion of its coal-fired power plant lifespan. The plants are anticipated to be hooked to the grid in three-four years.

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