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 AMEA Power Achieves Financial Closure for Its 120 MW Solar PV Project in South Africa

AMEA Power Achieves Financial Closure for Its 120 MW Solar PV Project in South Africa

AMEA Power, one of the fastest growing renewable energy companies based in the Middle East, has achieved financial close on its 120 MW Doornhoek Solar Photovoltaic (PV) Project in South Africa and when commissioned, the $120 million project will be the company’s first operational asset in the country.

AMEA Power is the majority shareholder in the 120 MW solar PV project, and had partnered with Ziyanda Energy and Dzimuzwo Energy, which are wholly owned by African women.

The project was first awarded to the consortium through Bid Window 6 of the REIPPPP. Standard Bank South Africa provided the debt funding of $100 million to AMEA Power, while Industrial Development Corporation provided the $8 million of equity funding to the local partners.

AMEA Power’s Chairman Hussain Al Nowais said that South Africa has vast renewable energy opportunities, and they were proud that with this project, AMEA Power will support South Africa in its renewable energy transition.

Standard Bank Group’s Executive of Energy and Infrastructure Finance, George Kotsovos, said that they have partnered with AMEA Power, Ziyanda Energy and Dzimuzwo Energy to play a key role in the success of a project that will generate more than 325GW of clean energy per year and power an estimated 97,000 households in support of our country’s energy requirements in a sustainable manner.

Industrial Development Corporation’s Interim Chief Executive Officer, David Jarvis, said that it was pleased to be partnering with AMEA for its inaugural utility-scale solar project in South Africa.

“We are especially excited to facilitate the equity participation and operational involvement of two new black women-owned entrants in the energy sector. We are committed to replicating this role in future energy projects to achieve the goal of enabling meaningful transformation in the sector,”. Jarvis said.

PPA Signed

The company had signed a Power Purchase Agreement on 30 April 2024, with South Africa’s Minister of Mineral Resources and Energy Gwede Mantashe, Segomoco M Scheppers, Eskom Group Executive for Transmission, and Hussain Al Nowais.

Also in attendance at the signing ceremony were Mahash Saeed Alhameli, the UAE Ambassador to South Africa, Sibongile Mduli, CEO of Ziyanda Energy, and Lusani Madali, Managing Director of Dzimuzwo Energy.

The 120 MW Doornhoek Solar PV Project is located near the town of Klerksdorp in the North Western Province, is expected to offset 330,000 tonnes of carbon emissions annually. The project is expected to commence commercial operations by December 2025.

As part of AMEA Power’s “Community Investment and Development Program”, the company will implement initiatives aimed at benefiting the socio-economic growth and development of the local community, which are aligned with the United Nations’ Sustainable Development Goals.

Global Business Magazine

Global Business Magazine

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