April 16 (Renewables Now) - German renewables company Enertrag AG has agreed to buy a 50% stake in a South African wind projects portfolio of 1.8 GW from Genesis Eco-Energy Developments (GEED).
The projects are spread all over South Africa and some of them are already in advanced stages of development. Enertrag said Thursday the deal supports its expansion outside Europe.
GEED director Davin Chown told local publication Business Report that some of the projects in which it will partner with the German company are being developed under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). Others would be built under agreements with off-takers as industrial companies are looking at renewable energy contracts, Chown was cited as saying. GEED has a track record of over 500 MW of realised wind and solar projects.
Early this month, after many obstacles and delays, 27 renewable power purchase agreements (PPAs) were signed in South Africa under REIPPPP, representing about 2,300 MW of generating capacity. These are projects from the final rounds of the programme, which supports the country's 18.8-GW renewables target.
Enertrag said that today in South Africa wind could be 40% cheaper than electricity from new coal power plants.