Developer Mainstream Renewable Power Reinforces Position as a Leader in the South African Renewable Energy Market
Client Mainstream Renewable Power recently announced it had reached financial close and commenced construction of a wind project and two solar PV projects in South Africa valued at nearly $636 million. All three projects are scheduled to be fully operational by mid 2014.
Ireland-based Mainstream led a coalition that bid for and won licenses for the projects from the South African government, which recently signed agreements with the winning bidders under its Renewable Energy Independent Power Producer Program (REIPPP). Stoel Rives attorneys Alan Merkle and David Hattery served as lead counsel for Mainstream, advising on engineering and procurement contracts (EPC), operations and maintenance agreements (O&M) and turbine supply agreement (TSA).
The three projects are:
- 138MW Jeffreys Bay wind farm located in the Eastern Cape
- 50MW De Aar solar PV farm located in the municipality of Emthanjeni in the Northern Cape
- 50MW Droogfontein solar PV farm located near the town of Kimberley in the Northern Cape
"This milestone reinforces the leading position of Mainstream in the South African electricity market," said Eddie O'Connor, Mainstream's Chief Executive.
The projects were in negotiation for four years. Mainstream was responsible for gaining all consents, grid connections, project financing, construction contracts and equipment procurement, and will also manage construction under the supervision of a joint steering committee with Globeleq, a London-based emerging markets power company and Mainstream's strategic equity partner on the projects. Mainstream's local partner is renewable energy developer Genesis Eco-Energy, which has been active in South Africa since 2001.
The projects will create hundreds of construction jobs and should eventually produce 635 GWh of electricity, enough to supply up to 48,000 households and displace approximately 628,000 tons of carbon emissions per year.
"We applaud Mainstream and the South African government in these ambitious projects, which will bring significant economic benefits to the project areas and clean energy to South Africa," said Alan Merkle, Stoel Rives Firm Chair and client lead for Mainstream.
Read the complete news release from Mainstream.