Financial close reached for Oya Energy project in South Africa

A Financial close has been reached for Oya Energy project in South Africa. This project represents a significant milestone in addressing South Africa’s energy crisis.

The Oya Energy project is a hybrid renewable energy project located between the towns of Ceres and Sutherland in South Africa. It involves the construction of a 155 MWp solar photovoltaic park, an 86 MW wind farm, and a 92 MW/242 MWh battery storage system.

The project integrates various renewable energy technologies, including solar, wind, and battery storage. This integration is aimed at addressing the intermittency associated with the production of certain renewable energies, ensuring a more reliable and consistent power supply.

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Oya Energy project

French independent power producer Engie along with several South African partners, including G7 Renewable Energies, Meadows Energy, and Perpetua Investment Holdings have been tasked the project’s development. Engie owns 35% of the special-purpose company, with the remaining ownership distributed among the other partners.

The project is developed under the South African government’s Independent Power Producers’ Risk Mitigation Procurement Program (RMIPPPP), which aims to mitigate risks associated with power generation projects and encourage private sector investment in the energy sector.

The electricity produced by the Oya Energy hybrid plant will be fed into the grid of the state-owned utility Eskom under a 20-year power purchase agreement (PPA). This agreement provides stability and assurance for the project’s revenue stream.

The energy produced from the project will be capable of powering approximately 180,000 South African homes, contributing to the country’s energy needs. The Oya Energy project is also expected to have a significant positive impact on the environment by avoiding emissions of 573,105 carbon dioxide equivalents (CO2) per year