Solar energy project in South Africa seeks investors
The project site is located in Molemole, Limpopo near to Polokwane. The land area where the project is based is 26 hectares (19.5h actual project size).
The structure of financing for this project includes 70% debt and 30% equity; with a project cost of R120-million per 5MW project- there will be two 5MW projects side by side.
R700 000 is required for project preparation for completion of the specialist studies to bankable feasibility.
The indicative project internal rate of return (IRR) is estimated to be 14%.
Photovoltaics is a method of generating electrical power by converting solar radiation into direct current electricity using semiconductors that exhibit the photovoltaic effect.
Generated power will be transmitted through the Eskom national grid to an industrial client in close proximity.
Project Sponsors include:
– Kinross Energy, a Level 3 BBBEE company
– Silver Falcon, land owner of the project location
– Tswelelang , a public benefit organisation for surrounding community participation, limited to 15% of project company.
– EPC, Negotiations underway with this European company, equity uptake limited to 10-15% of Project Company.