- Mediclinic has signed a 12-year power purchase agreement (PPA) with Moshesh Partners to deploy solar PV systems at six of its hospitals.
- Mediclinic believes that this will enable the company to reduce its energy costs.
- The agreement includes a clause for a further 25-year extension.
South African private healthcare and hospital group Mediclinic has signed a 12-year power purchase agreement (PPA) with sustainable infrastructure investment fund manager Moshesh Partners. Mediclinic, based in South Africa and Namibia, has contracted Moshesh to deploy solar PV systems at six hospitals. This will ensure access to clean energy and reduce the hospital group’s energy costs.
The systems are set to be installed from June to December. They are set to be constructed by commercial and industrial solar PV company ACES Africa, which has already completed 153 similar projects in six countries. The six systems will have the capacity to generate about 410MWh every year.
Mediclinic believes that access to on-site clean, affordable energy will help it manage its energy costs more effectively while helping us reduce the group’s carbon footprint. In addition, with the recently approved 15 per cent tariff increases by the National Energy Regulator of South Africa, businesses are seeking ways to manage energy costs effectively.
This is Moshesh Partners first investment since it reached the first close of its R2bn in renewable energy and clean infrastructure energy (RECI) Fund 1 in September. Moshesh CIO Daniel Palm notes that the investment in the project portfolio includes the full installation cost of the solar PV systems and maintenance. “Mediclinic will benefit from immediate and tangible savings, as well as consistent energy supply from a renewable energy source without having to allocate capital expenditure. The PPA means that the hospital group will also be protected from excessive power price increases,” Palm adds.