South African IPP secures projects totalling 620MW


After the much anticipated signing of the REIPPPP Power Purchase Agreements (PPAs), a South African IPP, Pele Green Energy (PGE), this week signed their outstanding contracts for round 3.5 and 4 projects.

The project’s generation capacity total of 620MW takes the company’s total project portfolio to 884MW.

Managing Director of Pele Green Energy, Gqi Raoleka, explained: “ […] REIPPPP has enabled our emergence as a 100% Black-owned independent power producer, operating along the full value chain of the power generation sector.

“We have thus made substantial investments in our capabilities and therefore welcome the signing of the PPAs as this gives us an opportunity to firmly position ourselves as a globally competitive South African company.”

Raoleka added: “We remain humbled by the opportunity our government has given us to continue to deliver clean energy to South African society and in so doing, create jobs and add value to the economy.”

South African energy minister Jeff Radebe concluded the signing of 27 projects procured under the Renewable Energy Independent Power Producer Procurement Programme Bid Windows 3.5 and 4 on Wednesday afternoon [4 April 2018]. Read more: Renewable IPPs celebrate signing victory!

Community development

Fumani Mthembi, MD of Knowledge Pele- the research, development and social investment subsidiary of Pele Energy group- commented: “Signature of the PPAs is a landmark moment for the communities that will host the renewable energy power plants.

“It means that they will receive new opportunities for employment, enterprise development and broader socio-economic advancement. We recognise that IPP projects typically struggle to create long-term employment opportunities.”

In a separate statement, the South African Wind Energy Association (SAWEA), noted that South Africa’s manufacturing and construction industries, in particular, stand to benefit immediately from the conclusion of these PPAs as equipment orders can now be placed and construction contracts can now be concluded.

The wind association added that the recovery of the domestic manufacturing industry is necessitated by the effects of the delay, which saw several manufacturing facilities having to retrench staff due to a lack of further component orders.

“We welcome the Department of Energy’s determination to unlock rural development and much-needed jobs particularly in the construction and manufacturing sectors, to provide assurance to the employees of the industry and to regain investor confidence,” said Brenda Martin, CEO of SAWEA.

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