OPIC Board Approves $250 Million for 60MW Solar Power Project in South Africa
September 17, 2012
(OPIC)
Will displace 140,000 tons of GHG emissions in first year alone; supports
country’s Black Economic Empowerment Program
WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment
Corporation (OPIC), the U.S. Government’s development finance institution,
approved up to $250 million for the agency’s first solar power project in South
Africa, a 60-megawatt plant that will help diversify the country’s electricity
generation beyond its heavy coal concentration and in the process displace
approximately 140,000 tons of greenhouse gas emissions in its first year alone.
The project came about in response to the new Renewable Energy Independent Power
Producer Program (REIPP), a South African government initiative that aims to
increase investment in renewable energy production, especially solar power, with
a goal of having 3725MW online by 2016. By involving two local firms as
co-sponsors along with its U.S. investors, the project will also help South
Africa meet the Black Economic Empowerment (BEE) objectives of the program.
The OPIC financing will enable two U.S. companies, MEMC Electronic Materials and
its subsidiary SunEdison, to construct and operate a solar photovoltaic plant in
Boshoff in South Africa’s Free State province. All electricity generated by the
plant will be sold to the national grid through a power-purchase agreement.
Coal-fired plants currently produce 84 percent of South Africa’s electrical
generation capacity. SunEdison estimates that in the first year alone
approximately 140,000 tons of greenhouse gas emissions will be displaced because
of the project.
“South Africa’s ambitious and impressive renewable energy program has
established the country as a leader in the field,” said OPIC President Elizabeth
Littlefield. “We’re pleased to work with an experienced developer such SunEdison
to deliver so many developmental benefits for South Africa, from the reduction
of pollution and displacement of GHG emissions to the creation of local jobs and
the realization of the country’s BEE program goals.”
MEMC, based in St. Peters, Missouri, is a major global manufacturer of PV wafers
and related products for the semiconductor and solar industries. Through its
SunEdison subsidiary acquired in 2009, MEMC is also a developer of solar power
projects and is a leading solar energy services provider.
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.