Four new renewable energy power plant projects for South Africa have received funding worth USD 116 million from the Multilateral Investment Guarantee Agency (MIGA), a subsidiary of the World Bank Group which recently released the guarantees.
The future plants, with a combined installed capacity of 288 MW, will be constructed and developed by the energy company BioTherm Energy, a subsidiary of Actis.
The guarantees distributed by MIGA for the renewable energy projects total USD 46.9 million for the Aggeneys and Konkoonsies II photovoltaic power plants in the Northern Cape and USD 68.9 million for the two wind power plants of Golden Valley and Excelsior, planned in the Eastern and Western Cape.
These guarantees from MIGA for the four new renewable energy power plant projects for South Africa cover construction, ownership and operation of the four projects.
It permits BioTherm Energy, the holder of these projects, to realise its investment while being protected against the risks of transfer, inconvertibility, expropriation, breach of contract, civil unrest and war, for a time period of 15 years.
BioTherm Energy has nearly 400 MW of wind and solar projects under construction in South Africa and Kenya. A total of 288 MW generated by these projects will be sold for 20 years to Eskom, the South African electricity distribution company, under a power purchase agreement (PPA) that the two parties signed in 2018.