American renewable energy developer SunEdison is a preferred bidder for an 86-megawatt DC solar photovoltaic project in South Africa.
The project, Droogfontein 2, is to come up 20 km south of Kimberly in the Northern Cape Province. It would produce adequate electricity to power 45,000 South African homes. South African national utility Eskom will purchase power from the project under a 20-year power purchase agreement (PPA).
SunEdison won the bid during the fourth round auction of Renewable Energy IPP Procurement Program (REIPPPP) organized by South Africa’s Department of Energy.
The project represents 20 percent of capacity auctioned in the fourth round of REIPPPP.
Enrique Collado, the general manager of SunEdison Africa, says solar power projects are the perfect solution for South Africa’s growing energy needs.
They can provide energy at prices comparable to fossil fuel energy and “can be brought on-line far more quickly than conventional power plants”.
SunEdison entered the South African market in 2011 and has already developed and installed 130 MW of utility scale solar power, according to a statement.
Once completed, the Droogfontein 2 solar power plant, too, will be operated and maintained by SunEdison.
The company has stated that it intends to offer the completed project to the yieldco it intends to form.
Ajith Kumar S