- EDF’s third 140MW Wind project in South Africa has reached financial close in South Africa’s controversial Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window 5 where one broad based black empowerment company, H1 Holdings, is an equity partner in no less than 21 of the 25 awarded projects.
The 140MW Coleskop Wind Power missed financial close deadline in November 2022 when EDF’s two other 140MW wind projects, Phezukomoya and San Kraal achieved financial close. Read more
It is a relieve to the South African public that another power generation project has reached financial close. The country is in a energy crisis with up to 10 hours of blackouts daily. Read more
The lenders for the Coleskop project are Standard Bank, Absa, Investec and Momentum Metropolitan.
The Coleskop Wind Farm is located in the Umsombomvu Local Municipality, on the boundary of the Eastern Cape and the Northern Cape. It is expected to reach commercial operation by the beginning of 2025. The project includes a new substation which will be constructed by EDF and handed over to Eskom once completed. The extra cost for the substation may have caused the delay in reaching financial close.
EDF’s BEE partners for the projects are H1 Holdings, GIBB-Crede and a local community trust.
Related news: The BBBEE Cat That Has All The Renewable Energy Creme in South Africa
Serious questions have been raised on fair competition and BBBEE priciples in Bid Window 5 outcome. Read more . The bid window has been riddled with open ended deadline extensions and tender rigging allegations foreign IPP’s were successful with submissions of up to six project bids in a single location (6 x 75MW solar PV projects or 3 x 140MW wind projects), snuffing out local bidders who bid single projects. The IPP office and the Department of Mineral Resources were none the wiser to the unfair tactics of the foreign IPP’s which has caused the country’s REIPPP Programme to lose much credibility. Read more
Author: Bryan Groenendaal
