The Umsobomvu REIPPPP R5 project, involving three 140 MW onshore wind farms in South Africa, aims to enhance renewable energy capacity and local economic development through strategic partnerships and a long-term agreement with Eskom.

Information on the Target

The Umsobomvu REIPPPP R5 project involves financing for three onshore wind farms: Phezukomoya, San Kraal, and Coleskop, each with a capacity of 140 MW. These wind farms are strategically located within the Umsobomvu Local Municipality, situated on the border of Eastern Cape and Northern Cape provinces in South Africa. The project gained preferred bidder status in October 2021 during the 5th bid window of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), marking a significant step towards enhancing renewable energy production in the region.

Financial closing for these projects happened in a phased manner, with Phezukomoya and San Kraal achieving this milestone in November 2022 and Coleskop following suit on January 18, 2023. The wind farms will be integrated into the national electricity grid and will sell power under a 20-year Power Purchase Agreement (PPA) with Eskom, the national utility company.

Industry Overview in South Africa

South Africa possesses a diversifying energy sector that has increasingly turned towards renewable energy solutions in recent years. As part of the country’s drive to meet its energy demands while reducing its carbon footprint, initiati