Construction will soon begin on South Africa’s largest wind farm in Mpumalanga, with power supply coming online by 2025. A power purchase agreement (PPA) for 155 MW of power to be generated by Seriti Green and wheeled through Eskom’s grid to Seriti Resources’ coal mining operations has been signed. The PPA realises the company’s commitments made in the MoU signed with Eskom and Exxaro in October 2021.
The company says that Standard Bank and RMB will assist with financing the project which is expected to cost R4 billion.
The conclusion of the PPA and meeting all conditions necessary to commence construction (including reaching a financial close on the project) is expected to be completed by mid-2023. The project has already received its environmental authorisation from the Department of Forestry, Fisheries and the Environment, which makes the start of construction possible and imminent.
This facility is part of a planned 900 MW renewable energy cluster, Ummbila Emoyeni, to be located between Bethal and Morgenzon in Mpumalanga. Ummbila Emoyeni will combine 750 MW of wind energy and 150 MW of solar PV. The entire project has been designated as a strategic integrated project by the Department of Public Works and Infrastructure.
The wind farm will be constructed in Mpumalanga, the country’s coal heartland, and will translate into a significant investment in the province along with the creation of jobs, procurement opportunities, and social investment expenditure.
Once constructed the wind farm will transform over 75% of the energy consumption from the firm’s existing coal operations into renewable energy while helping to mitigate its Scope 1 and 2 greenhouse gas (GHG) emissions and bringing the company a step closer to carbon neutrality. Scope 1 refers to emissions from processes at the mine site, while Scope 2 are the indirect emissions such as the purchase of electricity from Eskom.
The company’s larger renewable energy project ambition is to develop 3000 MW of renewable energy (both wind and solar) in the next decade.
