- Pele Green Energy secures financial close on a 100-MW solar project to power Glencore Merafe Venture’s ferrochrome smelters.
- Nedbank Group and Absa Group provide debt financing for the ZAR 2.1 billion project, with Pele Green providing equity.
- The Sonvanger solar park will help reduce carbon emissions and boost renewable energy in South Africa’s power mix.
Pele Green Energy has secured financial close on a 100-MW solar project. The project will power Glencore’s ferroalloys business and its joint venture, Merafe Resources. The Sonvanger photovoltaic (PV) park will be built in Masilonyana, Free State.
The solar facility will supply power to Glencore Merafe Venture’s ferrochrome smelters. This project aims to cut carbon emissions and boost the use of renewable energy in South Africa. Pele Green Energy will be the project’s lead sponsor and equity provider. Managing Director Gqi Raoleka confirmed that Nedbank Group and Absa Group will provide debt financing.
While financial details were not fully disclosed, Bloomberg reports the project is worth ZAR 2.1 billion (USD 116.3 million/EUR 110 million). Adhila Mayet, head of project development at Pele Green Energy, highlighted the project’s role in South Africa’s green energy shift. “This solar plant is crucial for reducing emissions and raising the share of renewable energy in the country’s power mix,” she said.
This solar project is part of Pele Green’s broader renewable energy efforts in South Africa. Pele Green Energy, EDF International, Mulilo Energy Holdings, and Gibb Crede recently reached financial close on three battery energy storage system (BESS) projects. With a combined capacity of 257 MW, these projects will be developed across South Africa. The consortium secured ZAR 7 billion in financing from local banks Standard Bank and Absa.
The Sonvanger solar and BESS projects are critical steps toward a more sustainable energy future for South Africa. Glencore and Merafe Resources are also taking significant steps to decarbonise their operations, aligning with global efforts to combat climate change.
Both projects reflect the growing momentum in South Africa’s renewable energy sector. The country has set ambitious targets for reducing carbon emissions and increasing clean energy in its grid. This comes as South Africa faces challenges in energy supply, with frequent blackouts and an overreliance on coal.
Pele Green Energy’s leadership in solar and energy storage projects signals the increasing role of private companies in driving South Africa’s energy transition. Renewable energy projects like these are expected to provide more stability to the country’s grid while reducing its carbon footprint.
With financial backing from Nedbank, Absa, and other vital lenders, the Sonvanger solar project is expected to move into construction soon. Once operational, it will provide much-needed clean power to support industrial operations while contributing to South Africa’s energy goals.
As the country looks toward a low-carbon future, initiatives like the Sonvanger PV park are vital. These projects are not only driving economic development but also supporting South Africa’s long-term sustainability goals.
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