Independent power producer Sola Group, which is part-owned by billionaire Patrice Motsepe’s African Rainbow Energy, will build a R2.5bn solar facility in the North West, having finalised finance agreements with banks and partners.
The 132MWp (maximum potential MW output at peak) project will sell energy to the platinum mining operations of African Rainbow Minerals (ARM), the diversified miner founded by Motsepe, through a long-term power purchase agreement using the national grid to deliver the power.
Sola Group said the project will generate 270GWh of clean electricity annually.
In its interim results for the period ended December 2022, ARM said it had signed the agreement with Sola Group to wheel 100MW of renewable energy to three of the ARM Platinum operations in Limpopo and Mpumalanga: Two Rivers, Bokoni and Nkomati mines.
“This project ... will deliver clean, low-cost energy, accounting for approximately one-third of the division’s power consumption, while enabling these operations to reduce the effect of daytime load-shedding,” ARM said in its 2022 annual report.
The facility, which is expected to start supplying the operations in 2026, is the third large-scale renewable energy project closed by Sola Group in six months. Including the latest project, the company now has 390MW of solar power under construction — or 588,000 solar panels over an area of 750ha.
“These projects have created 1,200 employment opportunities. Apart from providing cheaper, cleaner energy into the network, this project also stimulates local economic development in areas where people have had limited employment opportunities,” said Sola MD Chris Haw.
Sola will build and operate the facility through a joint venture with SA construction company WBHO. The project is financed by Absa, Standard Bank, the Development Bank of Southern Africa and Nedbank.
African Rainbow Energy, which is led by former Eskom CEO Brian Dames, owns a 40% stake in Sola.
According to Dames, African Rainbow Energy has already invested in one-gigawatts (1,000MW) of renewable energy projects, including R6.4bn in three programmes (including those under construction by Sola) in the North West.
Dames said the company was committed to building “a modern privately owned utility using technology to provide clean energy solutions to large customers, supporting the transition of the energy sector”.
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