- AMEA Power announced that it had executed a 25-year PPA with GreenCo Power Services Limited.
- The project’s construction is set to be financed by Standard Bank of South Africa.
AMEA Power, one of the fastest-growing renewable energy companies in the Middle East, announced that it had executed a 25-year Power Purchase Agreement (PPA) with GreenCo Power Services Limited, a private energy trader and member of the Southern African Power Pool, for the energy offtake from the 85MW solar PV power plant.
The project’s construction is set to be financed by Standard Bank of South Africa, a key financial institution in sub-Saharan Africa that is actively involved in funding green energy transition projects. The PPA signing was witnessed by Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the United Arab Emirates, and Ebrahim Patel, Minister of Trade and Industry for the Republic of South Africa.
The 85MW solar PV power plant will be located in the North West Province in South Africa and is expected to achieve financial close and commence construction during the third quarter of 2023. The solar plant will start delivering power to the national grid in early 2025, generating around 220 GWh of clean energy annually.
AMEA Power, GreenCo and Standard Bank have also entered into a cooperation agreement that seeks to develop a fast-track model to stimulate the onboarding of renewable energy generation in South Africa, a significant outcome that will help mitigate the current electricity crisis affecting businesses, households, and the economy as a whole.
Chairman of AMEA Power, Hussain Al Nowais, said, “The widespread electricity shortages in South Africa are impacting people’s everyday lives and crippling businesses. As part of AMEA Power’s goal to deliver clean energy across Africa, the Company is on track to deliver several large renewable energy projects in South Africa over the coming few years.”
As part of its long-term planning to reduce its carbon emissions and provide greater energy stability across its electricity network, South Africa aims to increase the share of renewable energy in its energy mix from 11% to 41% by 2030. The country also plans to decommission between 8GW and 12GW of coal-fired power plants over the next decade. To support its growth in South Africa, AMEA Power has opened a new regional hub in Johannesburg, which will initially accommodate around ten full-time staff members. The employees, which will be recruited from South Africa, will focus primarily on business development and project execution across the country.