Discovery Green has signed a power purchase agreement (PPA) with Red Rocket for 150 MW from the Overberg wind farm, which will be South Africa’s largest privately owned wind project once completed.
The project reached financial close on its first phase in March. Construction is now underway near Swellendam in the Western Cape.
Under the agreement, the 380 MW Overberg wind farm will supply 150 MW, equivalent to 489 GWh of energy annually, of clean energy to Discovery Green clients. The company’s portfolio includes Impala Platinum Holdings, Fortress Real Estate Investments, Balwin Properties, KP Lime and The Capital Hotels and Apartments.
Set to begin operating in 2027, the wind farm will cost over R13 billion, financed by Absa, Standard Bank and the Development Bank of Southern Africa.
The deal sets in motion a shift in the energy industry that will gain momentum in the future electricity market, Discovery Green said. This is possible due to regulations recently approved by the National Energy Regulator of South Africa, clarifying the regulatory framework for third-party wheeling.
“The renewable energy market is still in its infancy, and delivering a project of this scale and complexity required us to chart new ground,” says Andre Nepgen, Head of Discovery Green.
