Mainstream-led tie-up to build 360 MW of wind farms in S Africa

Oct 29, 2013 - Ireland-based Mainstream Renewable Power said Tuesday it had secured preferred bidder status, as part of a consortium, for 360 MW of wind farm projects in South Africa’s Northern Cape province.

The projects participate in the third round of South Africa’s Renewable Energy Procurement Programme (REIPP).

Mainstream is leading the tie-up that will spend ZAR 9 billion (USD 912m/EUR 663m) on the 140-MW Khobab wind project, the 140-MW Loeriesfontein 2 wind farm and the 80-MW Noupoort wind farm scheme. The consortium also includes South African Thebe Investment Corp, The IDEAS Managed Fund that is run by Old Mutual Investment Group, Futuregrowth Asset Management, another local firm -- Genesis Eco-Energy, clean technology private equity fund Lereko Metier Sustainable Capital and local community members.

Financial close on all three wind parks is expected by August 2014, with construction to kick off soon after that, Mainstream said. Barclays (LON:BARC), the Development Bank of Southern Africa and the Danish government's export credit agency EKF have arranged and underwritten the debt for the projects.

Under its REIPP, South Africa aims to install 3,725 MW of renewable energy capacity by 2016. Mainstream noted that it had participated in the first round of the programme again in a consortium. At the time it won preferred bidder status for 283 MW of wind and solar projects which are now to reach full capacity by the middle of 2014.

Total of 17 renewable energy projects emerged as winners in the REIPP's third round.

(ZAR 10 = USD 1.013/EUR 0.736)

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