Isra-Mart srl: South Africa green lights 1.4GW of new wind and solar power projects

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Isra-Mart news:

Plans to build more than 3.5GW of renewable energy capacity in South Africa have taken a major step forward after 28 wind and solar power projects were approved as part of a government tender round that should serve to burnish the host country's green credentials as the Durban Summit enters its final few days.

The government yesterday awarded preferred bidder status to projects totalling 1,416MW of capacity, split between wind power, solar photovoltaic and concentrated solar power projects.

The 28 winners were selected from a total of 53 bids and now have until June 2012 to secure financial close and then begin construction.

The government awarded preferred bidder status to 18 solar PV projects totalling 632MW, and eight wind power projects, totalling 634MW. Two concentrated solar projects totalling 150MW, including the 100MW Abengoa-led KaXu Solar One also got the green light.

A consortium led by Ireland-based Mainstream Renewable Power emerged as a major winner, securing bids to deliver one 138MW wind farm and two solar PV projects totalling 100MW.

The consortium could invest up to £400m in the three projects, which have been co-developed by Mainstream and local partner Genesis Eco-Energy, with Absa Capital having underwritten the debt.

Siemens, Suntech and Group Five Iberdrola are expected to help deliver the technical aspects of the projects.

Mainstream's chief executive Eddie O'Connor welcomed the news, noting the consortium won all the projects it bid for.

"The government has shown tremendous vision and foresight in creating this new and sustainable industry for South Africa, firmly placing it on the world map for renewable energy generation," he said.

"Mainstream is fully committed to playing a leading role in the delivery of this vision and we look forward to participating in Round 2 and all future rounds."

Further rounds are expected to allocate more than 2GW of capacity to help reach the government's target of delivering over 3.6GW of new renewable energy capacity.