A consortium led by global wind and solar company Mainstream Renewable Power has been awarded preferred bidder status by the Department of Energy (DoE) for two large-scale wind energy projects with a total generation capacity of 250 MW.

The award was made under the fourth round of government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and represented an investment of some R5.9-billion.

The DoE had not yet released the date for financial close.

The declaration of the 140 MW Kangnas wind farm, in the Northern Cape, and the 110 MW Perdekraal East wind farm, in the Cape Winelands, as preferred bidder projects brought to 848 MW the total capacity of all wind and solar projects awarded to Mainstream under the REIPPPP since 2011, making it the programme’s most successful project bidder.

In addition to the most recent projects awarded to it, Mainstream was currently building three wind farms in South Africa’s Northern Cape, totalling 360 MW, which it had been awarded under Round 3 of the programme. 

In addition, the company, last year, delivered three wind and solar facilities into commercial operation in South Africa under the first round of the programme.

Commenting on the announcement, Mainstream onshore procurement, construction and operations MD Barry Lynch said the group had already demonstrated its capability by delivering three wind and solar farms into commercial operation safely, on time and within budget.

“Renewable energy ticks three important boxes for South Africa’s energy needs. Firstly, the cost of these projects is now cheaper than new coal-fired generation.

“Secondly, they can be brought into commercial operation at the speed required and, third, they meet the scale needed to address the country’s growing electricity demand. Mainstream is once again delighted to be able to play a leading role in South Africa’s burgeoning renewable-energy sector,” he commented.

The Kangnas and Perdekraal East projects, which were expected to contribute to the grid by 2017, also received investment from Old Mutual Alternative Investments’ IDEAS Renewables Fund – a R6-billion facility that was currently the largest equity investor in South Africa’s renewable-energy programme.

The IDEAS Renewables Fund provided equity funding for 19 renewable-energy projects with an aggregate electricity generating capacity of some 1 500 MW.