Independent power producer (IPP) Mulilo is stepping up its renewable energy projects in South Africa, as the country gradually adds green energy sources to the national grid.
Yesterday, the company announced it had reached financial close on the Ukuqala Solar Project, located near De Aar in the Northern Cape.
This is the sixth project for which Mulilo has raised finance in 2024, adding 75MWAC (105MWDC) to projects under financial close in the pipeline.
Over the years, South Africa, which derives the majority of its energy from fossil fuels, has experienced crippling power shortages.
To plug the energy shortfall, the country is steadily adding renewable energy sources, such as wind and solar, to the grid.
Last week, Mulilo announced the financial close on 260MW of private power purchase agreements with Sasol and Air Liquide Large Industries SA, bolstering its renewable energy portfolio.
The projects will be connected to the Kestrel Main Transmission Substation, a facility under development by Mulilo and TotalEnergies, which will be handed over to Eskom upon completion, under a self-build agreement.
Mulilo says it currently has 420MW of wind and solar projects in its portfolio. In 2023, Mulilo was acquired by Copenhagen Infrastructure Partners, a fund manager with greenfield renewable energy investments.
Last month, the IPP announced it raised R7 billion for three battery energy storage system projects.
The company says the latest project is aptly named, with “ukuqala” meaning “the first” or “the beginning”.
This is the first project that Mulilo delivers under its integrated business model, it notes.
The firm’s multi-disciplinary team will manage construction and deliver asset management and operations and maintenance services, it explains.
Ukuqala Solar is the first renewable energy project to power Air Product’s Air Separation Units across SA, with electricity delivered via wheeling to various locations, it adds.
The project will be one of four others connected to the Kestrel Main Transmission Substation, currently under construction.
Located strategically near other Mulilo facilities, the Ukuqala Solar Plant has 105MWDC installed capacity, with a 75MWAC maximum output, due to an optimised design featuring a high DC/AC ratio, says the company.
It explains that this design enables the plant to reach its maximum output earlier in the day and sustain it for longer, contributing approximately 248GWh of power annually.
Mulilo CEO Jan Fourie says the financial closing of Ukuqala Solar is the first project where Mulilo is the lead developer.
“It demonstrates our ability to develop bespoke projects for the private sector and deliver on our integrated business model.”
This project was financed by Nedbank, Standard Bank and Absa.
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