Dubai-based AMEA Power said on Thursday it has been awarded a 120 MW solar photovoltaic (PV) project in South Africa.
The project has been awarded as part of the sixth bid submission phase of the Renewable Energy Independent Power Producer Procurement (REIPPP) Programme.
The Doornhoek PV project will sell electricity to the state utility, Eskom, under a 20-year power purchase agreement.
AMEA Power, the majority shareholder in the $120 million project, has partnered with a consortium wholly owned by African women, formed by Ziyanda Energy and Dzimuzwo Consulting.
The construction of the PV project will commence by mid-2023, and will make use of more than 45 percent of locally sourced materials and resources.
AMEA Power and its partners will form a community trust, which will own a share of the project, and contribute towards the economic development of communities close to the project.
Hussain Al Nowais, Chairman of AMEA Power, said the awarding of the project represented a major milestone for AMEA Power as it is the company’s first in South Africa.
“Over the next decade, the country will undergo a massive transition in its approach to electricity generation as the network decommissions large amounts of coal generation and adopts cleaner solutions like wind and solar. AMEA Power aims to bring many more clean energy projects onto the grid to help address the energy shortfall, and provide clean, affordable energy to the country in the long term,” he said.
The solar project, which is located near the town of Klerksdorp in the North West Province, will generate more than 325GWh of clean energy per year and power around 25,000 households.
The project is expected to offset 290,000 tonnes of carbon dioxide emissions annually.
As part of its long term planning to reduce its carbon emissions and provide greater energy stability across its electricity network, South Africa aims to increase the share of renewable energy in its energy mix from 11 percent to 41 percent by 2030.
The country also plans to decommission between 8GW and 12GW of coal fired power plants over the next decade.
AMEA Power said it has secured a number of sites suitable for the development of a further 1GW of renewable energy projects in South Africa, which the company will bid into future REIPPP Programmes, and provision for private sector consumers.
The company said it was also exploring opportunities with a number of commercial and industrial entities across South Africa to provide them with access to renewable energy.
AMEA Power said it was rapidly expanding its investments in wind, solar, energy storage and green hydrogen, demonstrating its long-term commitment to the global energy transition.
The company has a clean energy pipeline of over 6GW across 16 countries.
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