Mulilo has achieved financial closure for the 219MW-direct current (MWdc) Orkney solar PV facility in North West Province, South Africa, approximately 11km south-west of Orkney town.
This follows the establishment of a power purchase agreement (PPA), with Etana Energy as the exclusive off-taker.
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The project, which has an export capacity of 150MW-alternating current (MWac), signifies a crucial step in Mulilo’s strategy to deliver 1GW of new generation capacity annually, enhancing its role in South Africa’s energy transition.
This marks the second collaboration between Etana Energy and Mulilo to reach financial closure within a year.
It brings Etana’s total to more than 500MW of renewable energy projects closed in the past year. This includes the previously announced 105MW Du Plessis Dam Solar PV2 project, as well as the 100MW Zen and 94MW Bergrivier wind farms.
Etana Energy chief commercial and legal officer Jay Govender said: “This project marks another significant step in Etana Energy’s growth, with the Orkney solar plant being more than double the size of our first solar project under construction with Mulilo.
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By GlobalData“The speed at which this project has reached financial close demonstrates the strength of our partnership with Mulilo, the bankability of our respective structures and the accelerating demand from customers for reliable, large-scale renewable electricity delivered through Etana’s platform.”
Upon commencing operations, the Orkney facility is projected to generate around 478 gigawatt-hours of clean electricity each year.
This energy output will be distributed to Etana’s clients across South Africa, potentially reducing annual carbon dioxide-equivalent emissions by more than 500,000t and supplying power to approximately 210,000 households.
The Orkney facility will connect to the Jersey Distribution Substation through a newly constructed 24km overhead transmission line for seamless integration into the regional grid.
Additionally, it is equipped to incorporate battery energy storage systems in the future, improving grid flexibility and energy dispatch capabilities.
Mulilo CEO Jan Fourie said: “The financial close of the Orkney solar PV project makes an important milestone in advancing Mulilo’s commitment to strengthening South Africa’s energy security.
“This achievement reflects the strength of our partnerships, the capabilities of our team and the growing role of private-sector generation in solving South Africa’s energy challenges.
“We are honoured to work with Etana Energy and our partners to deliver clean, reliable power and lasting economic value to the North West Province and beyond.”
The project reached financial close with the backing of shareholders Copenhagen Infrastructure Partners (CIP) and Norfund.
Additionally, Mulilo collaborated with several funding, legal and advisory partners, including Absa Bank, Arup, ENS Africa, Fasken, PepperTree Capital and Standard Bank South Africa. Their combined expertise played a crucial role in facilitating a structured and thorough process.
