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UK firm Globeleq starts construction on three renewable projects in South Africa totalling 238MW

Emerging markets power company celebrates start of construction on South African wind and solar projects involving German firm Siemens

The three renewable energy projects will include a 138MW wind farm at Jeffreys Bay on South Africa’s Eastern Cape

UK emerging markets power company Globeleq has started construction on three renewable energy projects in South Africa. The projects include the 138MW wind farm at Jeffreys Bay on the Eastern Cape and 2 x 50MWp solar photovoltaic facilities located in the Northern Cape. All projects are expected to be operational in mid 2014.

“The start of construction of these three projects reinforces the dedication and leadership of the South African government to climate change and the necessity for diversifying the energy supply for the country,” said Mikael Karlsson, Chief Executive Officer for Globeleq. “It is yet another significant step for Globeleq in building the leading African power company and clearly demonstrates our commitment to deliver clean and reliable energy to the people of South Africa.”

The three projects are part of the Government of South Africa’s Renewable Energy IPP Procurement Programme and are among the very first large scale renewable power plants to be built in the country.

Globeleq is the majority shareholder in a consortium comprised of Mainstream Renewable Power, Thebe Investment Corporation, engineering firms Enzani Technologies and Usizo Engineering and local community trusts. Old Mutual is an additional consortium member in the Jeffreys Bay Wind Farm.

Paul Kunert, Head of Business Development for Africa said: “These renewable energy projects add to Globeleq’s extensive African power generation portfolio and illustrate our ability to mobilise capital for sustainable and productive power generation investments. Globeleq looks forward to working with our consortium partners, the contractors and community to successfully build the project on time, safely and within budget.”

During construction, the projects are expected to generate hundreds of jobs and, once operational, the project revenues will benefit the local community through socio-economic and enterprise development programmes. Each year the projects are expected to supply enough clean, renewable electricity to power more than 156,000 homes, displacing over 580,000 tonnes of carbon emissions each year. The two 50MW solar projects will be constructed by German firm Siemens under a lump-sum turnkey EPC contract. The Jeffreys Bay Wind Farm will be constructed by Siemens and a South African consortium of Murray & Roberts and Conco. Construction will be jointly managed across all three projects by Mainstream and Globeleq.