- Mining company Exxaro Resources Limited (Exxaro), through its wholly-owned renewable energy subsidiary, Cennergi, is developing the 70MW Lephalale Solar Project that will supply renewable energy to the Grootegeluk Complex.
- The deal is based on a build, own and operate (BOO) with a long term Power Purchase Agreement (PPA).
Grootegeluk Complex will derive long term sustainable benefits from the project, including security of clean electricity supply, significant energy cost savings and a carbon footprint reduction.
Roland Tatnall, Exxaro’s MD for Energy says “we are pleased to announce that Exxaro Coal and Cennergi have concluded a term sheet setting out material terms upon which the PPA will be concluded. This is a significant strategy development milestone, which constitutes a major step towards implementing Exxaro’s decarbonisation plans and progress in the Just Transition journey as well as positively contributing to its environmental, social and governance goals.”
Cennergi established itself in the local renewable energy sector in 2012 and commissioned two wind projects in the Eastern Cape in 2016: Amakhala Emoyeni wind farm near Bedford (134MW) and Tsitsikamma Community wind farm (95MW). These projects contribute 229MW of renewable energy to the national grid. Furthermore, the acquisition of Tata’s 50% interest in Cennergi resulted in Exxaro assuming 100% ownership of Cennergi effectively from April 2020. Cennergi Services manages these assets plus a further 9 solar PV sites.
Author: Bryan Groenendaal