SOUTH AFRICA – Independent Power Producer (IPP) EDF Renewables, a subsidiary of the Electricité de France (EDF) group, has signed power purchase agreements (PPAs) for Koruson 1 projects, a set of three wind farms in South Africa.

As a result, EDF Renewables has signed power purchase agreements with the South African Department of Energy and Mineral Resources in Pretoria.

The three projects, with installed capacities of 140 MW each, totalling 420 MW, are located within the boundaries of the Eastern and Northern Cape provinces.

The low-carbon renewable electricity produced each year by the three wind farms will help to meet the electricity needs of approximately 193 000 South African households.

The signing ceremony involved the signing of Project Documents, including the PPA between the projects and Eskom (specifically the Central Purchasing Agency), and the Implementation Agreement (IA) between the projects and the Department of Mineral Resources & Energy (DMRE), which details the economic development obligations that the projects committed to, over the construction and operations period.

Each project will comprise 26 wind turbines, with a height of 124 m and a blade length of 83 m. EDF Renewables will also be constructing the Koruson main transmission substation (MTS) on behalf of Eskom, under a self-build agreement (SBA), which is transferred to Eskom upon completion.

The three projects were awarded Preferred Bidder status in October 2021 under Round 5 (Bid Window 5) of the Renewable Energy Independent Power Producer Programme (REIPPP) by a consortium led by EDF Renewables in South Africa, together with its local broad-based black economic empowerment (B-BBEE) partners, H1 Holdings and GIBB-Crede.

The projects have committed to providing 2230 job years, which includes 400 full-time jobs to South African citizens during the construction period of two years and 35 full-time jobs to South African citizens during the operating period of twenty years.

Furthermore, the projects have committed to contributing approximately 40% of the total project value, during the construction and operations period, to local content.

The three projects are to be commissioned from mid-2024 to the beginning of 2025. Over the 20-year operational period, 1,2% of revenue will be dedicated to helping local communities through socio-economic initiatives. 

“The signing of the PPAs with Eskom is a key milestone before financial close and the launch of the construction phase of the three wind farms. Our teams in Gqeberha and Cape Town have been working very hard, so today’s closing is the achievement of a long journey,” Tristan de Drouas, CEO of EDF Renewables in South Africa, said.

“Going forward, completing these projects as soon as possible, under safe conditions, will be the main challenge for our teams, partners, and contractors.

“This 420 MW project also confirms our long-term perspectives in the country, adding to the almost 1 GW that EDF Renewables already develops, builds, or operates in South Africa, supporting the government’s and our ambitions to develop low-carbon energy solutions for the future.”

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s businesseconomy, and more. SUBSCRIBE HERE