Amea enters the South African market with the Doornhoek solar farm

This is its first power purchase agreement (PPA) signed in South Africa. UAE-based independent power producer Amea Power has signed a 20-year contract with state-owned utility Eskom. The contract covers the Doornhoek solar project, which Amea was awarded in the sixth tender round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPP).

The Doornhoek project with a total capacity of 120 MW is located in Dr Kenneth Kaunda District Municipality district, in the North West Province. The construction time is expected to be 24 months, and the new generation capacity is expected to come online by May 2026 #InvestSA pic.twitter.com/1IumprB2pB

— Gwede Mantashe (@GwedeMantashe1) April 30, 2024

The symbolic PPA was signed by Hussain Al Nowais, Amea’s Chairman, Gwede Mantashe, South Africa’s Minister of Mineral Resources and Energy, and Segomoco M. Scheppers, Eskom’s Chief Executive Officer. “As part of South Africa’s long-term strategy to reduce carbon dioxide (CO₂) emissions and enhance energy stability, the Doornhoek solar project will play a key role in the transition to sustainable energy solutions,” promised Hussain Al Nowais.

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This first solar power plant will be located near the town of Klerksdorp, in the North West province. Its production capacity is estimated at 120 MWp, or 325 GWh per year. This will guarantee clean electricity for 97,000 South African households, while offsetting emissions of 300,000 tonnes of CO₂ equivalent per year.

The project will require an investment of $120 million. The necessary financing will be provided by majority shareholder Amea Power, and its local partners Ziyanda Energy and Dzimuzwo Consulting. They will be able to draw on debt from Standard Bank South Africa, as well as financial support from South Africa’s Industrial Development Corporation (IDC).

Jean Marie Takouleu