Mulilo Prieska Solar PV Plant

Active

The 86.23MW (75MW AC) Mulilo Prieska Solar PV Plant reached financial closure in April 2015, as the loan agreement was signed and the construction was started by SunPower Corp. This BOO project worth of US$58.75 million would involve development of 75MW AC(86.23MW DC) solar PV plant, located in Prieska, South Africa. It was a part of Window 3 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) by Department of Energy (DoE). The DoE selected six solar photovoltaic, seven wind, two concentrated solar power, one landfill gas and one biomass project as preferred bidders in October 2013 for the third round of its REIPPP and the sponsors for each project were scheduled to simultaneously sign power purchase agreements with state utility Eskom and reach financial close on 30 July. The financial closure was delayed mainly due to the insufficient transmission infrastructure for the generation facilities. On July 22, DoE confirmed that the 17 projects involved in the third round of REIPPP would not reach financial close on 30 July 2014, as planned. Unlike in previous rounds of the REIPPP, where the signing of project documents and financial close happened simultaneously, none of the Window 3 deals was expected to close before January 2015 at the earliest, according to sources working on the transactions. On 20 April 2015, it was announced that SunPower started construction of the solar plant. SunPower would provide operations and maintenance services for the Prieska project once completed. The offtaker, ESKOM, signed a Power Purchase Agreement (PPA) with sponsor. This project was developed by a consortium that includes Andisol (25%, 100% owned by Calulo Renewable Energy), Mulilo Klipgats PV Community Hold Co. (5%, 100% owned by Mulilo Prieska Solar Community Trust), the Industrial Development Corporation (IDC) (15%), OMLACSA (Futuregrowth Asset Management) (10%), Mulilo Solar Enterprises (18%, 100% owned by Mulilo Group Holdings), Total Energy Development (27%, 100% owned by Total). The financing comprised US$11.75 million equity and US$47 million debt at debt/equity ratio of 80:20. Debt funding was provided through senior debt by the Nedbank Capital(38.1%), ABSA Capital(38.1%) and IDC(23.8%) http://www.nersa.org.za/Admin/Document/Editor/file/Consultations/Electricity/Presentations/Mulilo%20Prieska%20PV.pdf US$58.75 million vs. US$200 million. US$58.75 million was calculated from the debt amount and debt/e1uity ratio.