A consortium consisting of SolarReserve, a U.S. developer of utility-scale solar power projects; the Kensani Group, an empowerment investment and financial advisory player in South Africa; and Intikon Energy, a South African developer of renewable energy projects, has closed financing for two 75 MW solar photovoltaic projects in South Africa.
The Letsatsi project and the Lesedi project are located in the Free State and the Northern Cape, respectively. The projects were selected by the South Africa Department of Energy in the first round of bids under the South Africa Renewable Energy Independent Power Producer Procurement program.Â
Rand Merchant Bank (a division of FirstRand Bank Ltd.) acted as mandated lead arranger and bookrunner for the projects' debt funding requirements. Equity for the projects was provided by the IDEAS Managed Fund (managed by Old Mutual Investment Group South Africa), Kensani Capital Investments, GCL-Poly Energy Holdings, SolarReserve and Intikon, with Rand Merchant Bank providing preference share equity.
Jointly yielding approximately 600 construction jobs and 100 permanent operational jobs, the two projects will provide rural development programs and education enhancement, as well as skills and technology transfer, according to the companies. Each solar farm has in place a 20-year power purchase agreement with Eskom, the South African power utility.