SunEdison Announces R1.8 Billion in Funding for 66mw Boshof Solar Park
November 6, 2013
(OPIC)
OPIC to provide US$185 million in foreign debt funding in for third South Africa
project
Johannesburg, South Africa and Belmont, Calif. [November 6, 2013] – Leading
global solar energy services and technology provider SunEdison (NYSE:SUNE) today
announced it had secured R1.8 billion ($185 million) in foreign debt funding
from the Overseas Private Investment Corporation (OPIC). This amounts to 75% of
the R2.4 billion project cost for the Boshof Solar Park Project, located in
South Africa’s Free State province near Kimberley.
Electricity generated by Boshof, with an installed capacity of 60MW AC, will
feed into the South African grid, under the terms of a 20-year power purchase
and implementation agreement signed with national power utility Eskom and the
Department of Energy. The plant is scheduled to begin generating electricity in
the fourth quarter of 2014.
Boshof is the first project in South Africa’s Renewable Energy Independent Power
Producer Programme (REIPPP) to be supplied by a local South African
majority-owned photovoltaic (PV) module manufacturer. SunEdison will maintain a
51% ownership stake in the project, with South African companies holding the
remaining 49%.
Support for the Local Economy and Community
“Access to a reliable source of energy is essential to addressing a wide range
of development challenges from producing food to educating students and building
modern infrastructure,” said OPIC President and CEO Elizabeth Littlefield. “OPIC
is pleased to be supporting a project that will provide a clean and reliable
source of electricity and help stimulate economic development.”
The Boshof project is expected to create approximately 280 jobs during its
construction and operational phases, and through the use of local
sub-contractors the project is expected to support over 1,000 jobs.
Approximately 50% of the project’s total value will go to South African
manufacturers supplying local components and South Africa service providers
including the SunEdison AP90 Single Axis trackers that will be locally
manufactured for the project. Total procurement from black economic empowered
entities is estimated at R685 million (US$67.9 million).
“Helping improve developing economies by creating jobs is one of the many ways
our company is transforming lives through innovation,” said Pashupathy Gopalan,
SunEdison Vice President and Managing Director for South Asia and Sub-Saharan
Africa. “Boshof is a landmark project which will benefit the entire South
African economy as it contributes to energy security and creates green jobs
throughout the value chain.”
Over R200 million (US$19.7 million) is set aside for projects that will
transform the community by improving access to education and healthcare,
supporting enterprise development and other projects to improve the quality of
life for residents throughout the Free State and Northern Cape.
Growing Commitment to South Africa
Construction has begun on two other utility-scale projects developed by
SunEdison in Limpopo province, Soutpan and Witkop, which together total 58MW
contracted capacity. As with Boshof, these projects rely on local
subcontractors to help improve the overall economoy and create employment
opportunities.
Reliable Investment
The Government Employees Pension Fund’s (GEPF) Acting Principal Officer Joelene
Moodley said: “We are increasing our investment with SunEdison because we view
the Boshof project as a secure investment for our members and pensioners. This
is why we feel comfortable nearly doubling our investment in SunEdison South
Africa projects by R312 million (US$30.8 million) for the Boshof Solar Park.
Not only do we believe this a safe place for us to invest, the project is in
alignment with GEPF's mandate to back infrastructure projects that promote
economic growth and job creation.”
“SunEdison has extensive experience in delivering reliable and economical solar
energy solutions for our customers around the world, in both the public and
private sector. We are using that experience and our innovative approach to
technology and business development to create new markets. Being part of this
historic milestone for South Africa is very rewarding,” said Gopalan.
About SunEdison
SunEdison is a global leader in semiconductor and solar technology. SunEdison's
semiconductor business has been a pioneer in the design and development of
silicon wafer technologies for over 50 years. With R&D and manufacturing
facilities in the US, Europe and Asia, SunEdison enables the next generation of
high performance semiconductor devices. SunEdison's solar business develops,
finances, installs and operates power plants, delivering predictably priced
solar energy and services for commercial, government and utility customers.
SunEdison's common stock is listed on the New York Stock Exchange under the
symbol "SUNE."
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