Old Mutual - Herbert Solar PV

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Herbert solar PV was a 20 MW project to be located in the Northern Cape of South Africa. The project was sponsored by The Old Mutual Life Assurance Company of South Africa and local developer AE-AMD Renewable energy. The project was awarded in a tender administered by the Department of Energy where a critical factor in the decision was the projected price of power. Contractual negotiations on the PPA and financing were to be completed by June 2012. The tender was open to all technologies, 53 bids were submitted of which 28 made it to preferred bidder status. These 28 project account for a total of 1,416MW if all are implemented. The EIA was passed (as was required for all bidders). Under bid rules, the project had to have at least 35% local content. There would be a 20 year PPA with the state owned utility, Eskom. In Novemebr 2012 the project reached fiancial close. The equity investors put in USD 30 million into the project, along with 68 million in debt financing. The debt was provided in local currency by the Development Bank of South Africa, Standard Bank and Future Growth Asset manager. The power plant started its operation in April 2014.