Independent power producer (IPP) Amea Power has signed a power purchase agreement (PPA) with GreenCo Power Services, the subsidiary of energy trader Africa GreenCo Group. The agreement covers the construction of an 85 MWp solar photovoltaic plant.
The energy transition in South Africa is accelerating with the help of Amea Power. The Dubai, United Arab Emirates (UAE)-based independent power producer (IPP) will build a new solar power plant in the North West Province. The project is now covered by a power purchase agreement (PPA) recently signed between IPP and GreenCo Power Services, the subsidiary of energy trader Africa GreenCo Group.
Under the agreement, Amea Power will sell the electricity generated to GreenCo over a 25-year period. The project is expected to be financially secured prior to the start of construction in the third quarter of 2023, with funding from Standard Bank of South Africa. Connected to the South African electricity grid, the solar PV plant is expected to produce its first MW in early 2025. GreenCo, which will purchase this electricity, acts as an intermediate supplier and service provider in South Africa.
A response to the energy crisis
Specifically, the company, headed by Ana Hajduka Shields, buys the electricity from renewable energy producers and sells it to utilities, commercial and industrial (C&I) customers and partners in the Southern African Power Pool (SAPP). According to Amea Power, the facility will be capable of producing 220 GWh of electricity per year. This is a boon for South Africa, which is facing an energy crisis due in part to the age of its coal-fired power plants.
“Widespread power shortages in South Africa are impacting on people’s daily lives and crippling businesses. As part of Amea Power’s goal to provide clean energy across Africa, the company is set to deliver several major renewable energy projects in South Africa over the next few years,” says Hussain Al Nowais, Amea Power’s chairman.
The company has already started investing in South Africa under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which was initiated by the central government to attract investment from IPPs. Pretoria wants to increase the share of renewable energy in its electricity mix from the current 11% to 41% by 2030. This is a difficult equation to solve, but it is realistic and will require an investment of 31 billion dollars between now and 2030 according to a report by the International Institute for Sustainable Development (IISD).