FINANCIAL CLOSURE ACHIEVED
Circa 6.6 billion Rand investment with construction of wind farm due to start in June 2018
Global wind and solar company Mainstream Renewable Power today announces the successful completion of financial close for two wind farms in South Africa with a combined capacity of 250 megawatts (MW). A consortium led by Mainstream was awarded the contracts for the wind farms by the Department of Energy in South Africa under the fourth round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The wind farms, which are located in South Africa’s Northern and Western Capes, represent an investment of approximately 6.6 billion Rand and are expected to commence construction June 2018.
Mainstream has been awarded a total of 848 megawatts of wind and solar projects under the REIPPPP programme since the first round in 2011, making it the country’s most successful independent renewable energy developer. The company has already delivered five wind and solar PV plants into commercial operation under the programme, with a combined generation capacity of almost 600MW, and has bid a number of additional wind and solar PV projects under the Expedited Round (4x), the results of which are expected to be announced shortly.
Commenting on the announcement, Hein Reyneke, Mainstream’s General Manager for Africa said: “Our team here in South Africa is really excited to reach financial close and start constructing these two projects, which will bring a 1.1 billion Rand community investment over 20 years once they start operating in 2020. Importantly, we are looking forward to the results of the expedited fourth round of the REIPPPP being announced soon, as well as further rounds, which are vital to securing a sustainable long-term, least-cost energy plan for the country.”
He added: “Mainstream has been investing and building a local team in South Africa for almost a decade and with a portfolio of more than 3,000MW of wind and solar projects under development here, we are delighted to be making a significant contribution to building South Africa’s low-cost and low-carbon power system whilst boosting rural communities.”
The wind farms that have reached financial close are:
The equity members of the projects are:
The debt for the projects has been arranged and led by ABSA. The consortium of Concor and Conco has been appointed as construction contractor and Siemens Gamesa Renewable Energy will supply and install the wind turbines. Simmons & Simmons and White & Case acted as Lenders’ Legal Advisor. Fasken and Stoel Rives acted as Sponsor Legal Counsel.
Projects developed and delivered into commercial operation by Mainstream under the REIPPPP
About Mainstream Renewable Power
Mainstream Renewable Power is the leading independent developer of utility-scale wind and solar power plants in high-growth emerging markets. The company is focused on delivering a high quality portfolio of more than 6.5 gigawatts (GW) of wind and solar assets across Latin America, Africa and Asia. In Chile, Mainstream wholly owns 1.3GW of fully contracted wind and solar projects in operation, in construction or at late stage development, due to its unprecedented success in government auctions. The company has delivered 600MW of wind and solar assets into commercial operation in South Africa and is developing large-scale projects in Vietnam and the Philippines. Mainstream has raised more than €1.6bn in project finance to date and employs 160 staff across four continents.