Middle Eastern developer AMEA Power has achieved financial close on its 120MW Doornhoek solar project located in South Africa, signaling a significant milestone in the company's expansion into the African renewable energy market.
With an estimated project cost of $120 million, the endeavor represents AMEA Power's inaugural operational asset in South Africa, underscoring its commitment to supporting the country's renewable energy transition.
AMEA Power, serving as the majority shareholder in the 120MW solar project, has partnered with Ziyanda Energy and Dzimuzwo Energy, both of which are wholly owned by African women, demonstrating a commitment to fostering diversity and inclusion within the renewable energy sector.
Hussain Al Nowais, Chairman of AMEA Power, expressed enthusiasm for the project's contribution to South Africa's renewable energy landscape:
“We are delighted to reach financial close on the 120MW Doornhoek solar project in South Africa. The country has vast renewable energy opportunities, and we are proud that with this project, we will support South Africa in its renewable energy transition.”
Financial support for the project has been secured through debt funding provided by Standard Bank South Africa amounting to $100 million, with an additional $8 million in equity funding provided by the Industrial Development Corporation to the local partners.
George Kotsovos, Executive of Energy and Infrastructure Finance at Standard Bank Group, highlighted the bank's commitment to sustainable energy development:
“We are extremely proud to have partnered with AMEA Power, Ziyanda Energy and Dzimuzwo Energy and to play a key role in the success of a project that will generate more than 325GWh of clean energy per year and power an estimated 97,000 households in support of our country's energy requirements in a sustainable manner.”
The project, awarded to the consortium through Bid Window 6 of the REIPPPP, is expected to commence commercial operations by December 2025, contributing significantly to South Africa's renewable energy capacity.
As part of AMEA Power's “Community Investment and Development Program,” initiatives will be implemented to benefit the socio-economic growth of the local community, aligning with the United Nations' Sustainable Development Goals.
