Lekela celebrates financial close on two wind power projects in South Africa

  • Construction will shortly begin at Kangnas and Perdekraal East projects in South Africa to deliver 250MW of clean, reliable energy to the grid in less than 28 months

  • Social investment programmes are underway, with the projects committing over ZAR 800m in total towards creating sustainable livelihoods in the local communities

  • Milestone comes ahead of expected financial close at projects in Senegal and Egypt later in 2018, as Lekela’s portfolio develops at pace

Lekela, the renewable power generation company that delivers utility-scale projects across Africa, today announces that it has successfully reached financial close on two further projects in South Africa. The Kangnas and Perdekraal East wind power projects together will add 250MW of clean, reliable power to South Africa’s grid. Construction will shortly begin on the wind farms, with the projects expected to be fully operational in under 28 months.

Situated in the Northern Cape close to the town of Springbok, Kangnas is a 140MW project of 61 wind turbines. Perdekraal East will comprise 48 wind turbines and is a 110MW project located in the Western Cape close to the town of Touwsrivier.

Both projects will use Siemens wind turbines of a 108-meter rotor diameter and a 115 MM hub height. The projects are part of the fourth round of the South African Government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and support the country’s renewable energy strategy. The total cost for both projects is approximately USD 515m.

As part of Lekela’s strategy to create long-term value for the communities in which it operates, extensive social investment programmes in the local areas have begun. The core focus of these programmes is to create sustainable livelihoods for communities by investing in social and economic development.

Combined, the projects are expected to contribute over ZAR 800m to the local communities over the lives of the wind farms. Additionally, community trusts have been established for Kangnas and Perdekraal East projects, providing each community with a shareholding in their local wind farm.

During peak construction, around 400 employment opportunities will be created for each project, developing important skills and knowledge in the local communities and enabling improved employment prospects.

These are just two of several Lekela projects currently in operation or late stage development. At present, the company’s pipeline consists of over 1,300 megawatts across projects in Egypt, Ghana and South Africa, as well as Senegal’s first utility scale wind farm which is soon to reach financial close.

Chris Antonopoulos, Chief Executive Officer at Lekela commented, “As the demand for clean, reliable power increases in African countries, bringing renewable energy online quickly becomes more crucial. Reaching financial close on both these projects marks the latest milestone in our journey to harness Africa’s abundant renewable energy on the continent for the lasting benefit of its communities.

Looking ahead, we expect to see construction start on wind projects in Senegal and Egypt before the end of the year as well. What we learn and develop from our portfolio here in South Africa, we can share with governments interested in renewable energy elsewhere in Africa. This knowledge sharing is key to accelerating the adoption of clean, reliable power on the continent.”

About Kangnas and Perdekraal East

The Kangnas and Perdekraal East wind power projects will together add 250MW of clean, reliable power to South Africa’s grid. The projects are part of the fourth round of the South African Government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and support the country’s renewable energy strategy.

Perdekraal East is a 110MW project located in the Western Cape close to the town of Touwsrivier. The project will consist of 48 wind turbines. The Kangas wind farm is a 140MW project consisting of 61 wind turbines and located in the Northern Cape close to the town of Springbok.

As part of Lekela’s strategy to create long-term value for the communities in which it operates, extensive social investment programmes in the local areas have begun, aiming to create sustainable livelihoods for communities by investing in social and economic development.