- Standard Bank set to finance the construction of the 85 megawatt (MW) solar PV power plant
- AMEA Power has secured sites suitable for more than 1 gigawatt (GW) of projects in South Africa
- New regional hub opened by AMEA Power to focus on developing the South African market
Johannesburg, South Africa; April 25, 2023: AMEA Power, one of the fastest growing renewable energy companies in the Middle East, announced today that it has executed a 25-year Power Purchase Agreement (PPA) with GreenCo Power Services (Pty) Limited (GreenCo), a private energy trader and member of the Southern African Power Pool (SAPP), for the energy offtake from the 85MW solar PV power plant.
The construction of the project is set to be financed by Standard Bank of South Africa (Standard Bank), a key financial institution in sub-Saharan Africa that is actively involved in financing green energy transition projects.
The PPA signing was witnessed by HE Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the United Arab Emirates, and HE Ebrahim Patel, Minister of Trade and Industry for the Republic of South Africa.
The 85MW solar PV power plant will be located in the North West Province in South Africa, and is expected to achieve financial close and commence construction during the third quarter of 2023. The solar plant will start delivering power into the national grid in early 2025 and will generate around 220GWh of clean energy per year.
AMEA Power, GreenCo and Standard Bank have also entered into a cooperation agreement that seeks to develop a fast-track model to stimulate the onboarding of renewable energy generation in South Africa; a significant outcome that will help mitigate the current electricity crisis affecting businesses, households, and the economy as a whole.
Hussain Al Nowais, Chairman of AMEA Power, said: “The widespread electricity shortages in South Africa are impacting people’s everyday lives and crippling businesses. As part of AMEA Power’s goal to deliver clean energy across Africa, the Company is on track to deliver several large renewable energy projects in South Africa over the coming few years.
“As part of our long-term commitment to South Africa, AMEA Power will invest in different clean energy solutions, establish strategic partnerships with local companies and has opened a new regional hub, which will help us accelerate our activities.”
Ana Hajduka, Chief Executive Office of GreenCo, said: “The signing of this PPA marks a tremendous shift towards the sustainable development of the national and regional power markets. GreenCo and AMEA Power have within a few months made immense strides and paved the way for an efficiently structured project development and offtake model to be rolled out in South Africa. In addition, GreenCo is very confident in the future of energy markets knowing that institutions like Standard Bank are supporting innovative approaches such as ours.”
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% to 41% by 2030. The country also plans to decommission between 8GW and 12GW of coal fired power plants over the next decade.
To support its growth in South Africa, AMEA Power has opened a new regional hub in Johannesburg, which will initially accommodate around 10 full-time members of staff. The employees which will be recruited from South Africa, will focus primarily on business development and project execution across the country.
In late 2022, AMEA Power was awarded a 120MW solar photovoltaic (PV) project in South Africa as part of the Sixth Bid Submission Phase of the Renewable Energy Independent Power Producer Procurement (REIPPP) Program. The Doornhoek PV Project will sell electricity to the state utility, Eskom, under a 20-year Power Purchase Agreement.
The Doornhoek PV 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. In total, the project is expected to offset 290,000 tonnes of carbon dioxide emissions annually.
AMEA Power has also 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 Programs, and provision for private sector consumers. The Company is also exploring opportunities with a number of commercial and industrial entities across South Africa to provide them with access to renewable energy.
AMEA Power is 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 clean energy pipeline of over 6GW across 16 countries.
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About AMEA Power
Headquartered in Dubai, AMEA Power is a developer, owner and operator of renewable energy projects. As one of the fastest growing renewable energy companies in the region, the company is rapidly expanding its investments in wind, solar, energy storage and green hydrogen, demonstrating its long-term commitment to the global energy transition. AMEA Power has assembled a world class team of industry experts to deliver projects across Africa, the Middle East and other emerging markets.
For more information please see: https://www.ameapower.com/
GreenCo. Africa GreenCo Group via its South African operating subsidiary GreenCo Power Services (Pty) Limited acts as an intermediary offtaker and service provider in South Africa, purchasing power from renewable IPPs and selling that electricity to utilities and private sector offtakers (i.e. commercial and industrial users) and markets of the SAPP. GreenCo will mitigate the risk of purchaser default through an ability to secure alternative buyers and through short-term trading on the SAPP electricity markets. Through its participation in competitive power markets, GreenCo will promote cross-border power transactions and a more dynamic and liquid short-term power market. Through its activities, GreenCo will increase the supply of, and demand for, finance for energy projects, and mobilise private sector capital more quickly towards critical and transformative capacity addition. For more information please see: https://africagreenco.com/
About Standard Bank of South Africa
Standard Bank of South Africa. With over 160 years of banking experience and a presence in 20 countries in Africa, including South Africa, and in key markets globally, Standard Bank is South Africa and Africa’s largest banking group by assets. Standard Bank’s vision is to be the leading financial services organisation in, for, and across Africa. For more information please see: https://corporateandinvestment.standardbank.com/cib/global/about-us
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