Enel Green Power has expanded its presence in South Africa, after it was awarded the rights to develop 425 megawatts of wind farms in the country’s latest tender for renewable energy projects.
Enel won the rights to enter into supply contracts with state utility Eskom for the three projects in the fourth round of the Renewable Energy Independent Power Producer Procurement Programme.
The 142-MW Oyster Bay, the 141-MW Nxuba and 142-MW Karusa wind farms will be constructed in the Eastern Cape and Northern Cape provinces, in areas with abundant wind resources. The Oyster Bay and Nxuba projects will start operating in 2017, while Karusa will enter into service in 2018.
Enel anticipates the projects will cost EUR 500 million (US$533 million). Enel said it participated in the tender through vehicle companies in which it holds the majority of the shares, in partnership with local companies.
The company was awarded 513 MW of projects in the third phase of the REIPPPP tender. It owns and operates a 10-MW photovoltaic plant in Upington Northern Cape.The company was awarded 513 MW of projects in the third phase of the REIPPPP tender.
Separately, Enel said it has begun construction of the 111-MW Gibson Bay wind project located in the Eastern Cape Province. The project will cost EUR 190 million and is expected to start operating in the first half of 2017.
The company has already secures a US$160 million loan from KfW IPEX-Bank for the project. A 20-year power-purchase agreement has been signed with Eskom. The Gibson Bay wind farm was awarded to Enel in 2013 under the REIPPPP.