400MW MATJHABENG, ORANGE FREE STATE, SOUTH AFRICA – SOLAR PV COMPLEX CAPEX C $500 MIO

The project addresses the existing energy problems in South Africa, a leading mining country (gold, diamonds) currently underpowered. South Africa produces around 47,000Mw against an installed capacity of 52,000Mw. Amongst current challenges state utility business and operational failures, plant maintenance issues and breakdowns at ageing poorly-maintained power stations, under investment and Eskom’s struggle with high debts.

Amongst the significant benefits of this project are diversifying local energy portfolio and reducing the risk of fuel price volatility, provide peak generation and faster time to power, provide predictable and bankable energy with low levelised cost of electricity (LCOE) and sustainable job creation.

Project entails electricity sales to South Africa state utility company Eskom backed by Central Bank guarantee, and or C&I operators via long term PPAs. Investment in two rounds of 200MW/$ 250 million each in SPV and up to 600Mw for private offtakers, for a total 1,000Mw, total investment $ 15 billion over 36 months.

Solid investment return of 20% plus unlevered.
Project in 51%-49% joint venture between local partner and PPMI (South Africa), who is also prospective co-project manager.