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Global wind and solar company, Mainstream Renewable Power, announces that 12 of its projects have won preferred bidder status in Round 5 of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The wind and solar projects, which have a total capacity of 1.27 GW, represent half of the total allocation in the Round, which was the most competitive to date, being almost four times oversubscribed.
The win makes Mainstream the most successful company in the history of the South African renewable energy procurement programme, with over 2.1 GW awarded to date. This includes 850 MW of wind and solar generation assets that Mainstream has already delivered into commercial operation across Rounds 1, 3, and 4 of the REIPPPP.
Mainstream has achieved a number of firsts in the REIPPPP, including constructing South Africa’s first self-build substation as well as bringing the first projects to financial close and to complete construction in Rounds 1,3, and 4.
The Mainstream-led consortium, named ‘Ikamva’, which means “the future” in Xhosa, will deliver six onshore wind projects and six solar PV projects, including the first REIPPPP project in South Africa’s KwaZulu-Natal province.
The consortium brings together a range of expertise, led by Mainstream’s 100% African team of over a hundred professionals, and comprises Globeleq, Africa Rainbow Energy & Power, H1 Holdings, and local community trusts.
As a result of this award, Mainstream will double the size of its South African team and will be actively recruiting another 100 South Africans to support the engineering and construction of the 12 projects. This will make Mainstream the largest pure-play renewables employer in Africa.
The projects will produce approximately 4,500 Gigawatt hours (GWh) of green electricity each year, helping to avoid nearly 5 million tonnes of CO2 per annum, once fully operational. They will provide South Africa with critical, low-cost, indigenous power and help deliver a just transition towards its clean energy and climate goals.
The win underpins Mainstream’s strategy of building true scale across its global platforms, with the company’s global portfolio now at 16.2 GW. It is the latest demonstration of Mainstream’s accelerated growth trajectory following the 75% acquisition by Aker Horizons earlier in 2021, as well as the announcement of the new 1 GW Nazca Renovables platform in Chile in July.
Hein Reyneke, Mainstream’s General Manager for Africa, said: “We are delighted to be chosen to contribute further to the decarbonization of South Africa. It is a demonstration of faith in Mainstream’s track record of efficient and reliable delivery, not only here in South Africa but also internationally, where we are currently building ten wind and solar PV projects simultaneously, totalling 1.35 GW in Chile. Our latest win will deliver enormous social, economic, and environmental benefits for South Africa.”
Mainstream owns 100% of the projects awarded. At financial close, ownership will transfer to the equity consortium: Mainstream (25%), Globeleq (26%), Africa Rainbow Energy & Power (23.25%), H1 Holdings (23.25%) and Community Trusts (2.5%).