Renewable energy company AMEA Power has been selected as a preferred bidder under Bid Window (BW) 6 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The company submitted a bid to build a 120 MW solar photovoltaic (PV) project, the Doornhoek PV project, in North West.

The solar project, located near the town of Klerksdorp, will generate more than 325 GWh/y of clean energy.

AMEA secured a 20-year power purchase agreement with State utility Eskom.

The construction of the Doornhoek PV project will start in mid-2023 and will include more than 45% locally-sourced materials and resources.

In total, the project is expected to offset 290 000 t/y of carbon dioxide emissions.

AMEA Power is the majority shareholder in the $120-million project, and has partnered with a consortium wholly-owned by African women, formed by Ziyanda Energy and Dzimuzwo Consulting.

AMEA Power chairperson Hussain Al Nowais says the awarding of the project represents another major milestone for AMEA Power as it is the first of the company’s power plants to be built in South Africa and was granted in competition with other major renewable energy players.

“Over the next decade, the country will undergo a massive transition in its approach to electricity generation as the network decommissions large amounts of coal generation and adopts cleaner solutions like wind and solar.

“AMEA Power aims to bring many more clean energy projects onto the grid to help address the energy shortfall, and provide clean, affordable energy to the country in the long term,” he says.

As part of its long-term planning to reduce its carbon emissions and provide greater energy stability across its electricity network, South Africa aims to increase the share of renewable energy in its energy mix from a current 11%, to 41% by 2030. The country also plans to decommission between 8 GW and 12 GW of coal-fired power plants over the next decade.

Clean energy solutions, Al Nowais explains, presents “tremendous” opportunities for delivering investment, job creation and social development across South Africa. “As AMEA Power expands its clean energy footprint across the continent, South Africa will be a major market for the company and an opportunity to work with local partners to develop projects across the country.”

AMEA Power has secured a number of sites suitable for the development of a further 1 GW of renewable energy projects in South Africa, which the company will bid for in future REIPPPP BWs, as well as other procurement programmes. It will also look into providing power for private sector consumers.

The company is also exploring opportunities with a number of commercial and industrial entities across South Africa to provide them with access to renewable energy.

To further support the development of South Africa, AMEA Power and its partners will form a community trust, which will own a share of the project, and contribute towards the economic development of communities close to the project.