Seriti unveils first black-owned S.Africa wind farm
Seriti Green, a division of Seriti Resources, hosted a site visit at its new wind farm in Mpumalanga. The 900MW project is expected to be fully commissioned by 2027, by which time it will provide electricity for the equivalent of around 500,000 South African households in the area. Peter Venn, Chief Executive Officer, Seriti Green joins CNBC Africa for more.
Wed, 17 Jul 2024 16:04:02 GMT
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AI Generated Summary
- The 900MW wind farm project in Mpumalanga aims to provide electricity for 500,000 South African households, showcasing the cost-effectiveness of renewable energy compared to traditional sources.
- Seriti Green has successfully raised initial funding of five billion Rand and remains confident in securing the remaining capital for the 25 billion Rand project within the next 18 months.
- The project emphasizes collaboration with local government and financial institutions, highlighting the crucial role of sustainable finance in driving renewable energy initiatives and reducing scope emissions.
Seriti Energy, a division of the Seriti Group, recently hosted a site visit at its new wind farm in Mpumalanga. The 900MW project, expected to be fully operational by 2027, aims to provide electricity for about 500,000 South African households in the area. Peter Venn, the CEO of Seriti Green, shared insights on the project during a CNBC Africa interview. Venn expressed enthusiasm about the local community's involvement in the construction process, highlighting the project's positive impact on Mpumalanga. Since achieving financial close in April, the project has made significant progress in mobilizing funds and executing construction. Furthermore, Venn emphasized the cost-effectiveness of renewable energy compared to traditional sources, citing a 30-40% discount from Eskom's electricity rates.
The ambitious project involves an estimated total cost of 25 billion Rand, requiring substantial capital raising efforts. Venn showed confidence in the group's ability to secure the remaining funds within the next 18 months, with strategic partnerships and debt financing playing crucial roles. Collaboration with financial institutions like Standard Bank and RMB has facilitated long-term debt arrangements, supporting the project's sustainability goals.
Discussing infrastructure development, Venn highlighted the importance of building transmission facilities to connect the wind farm to the national grid. Approximately one billion Rand of the initial investment has been allocated to constructing Eskom infrastructure, a key component for efficient energy distribution. Venn also outlined the project's environmental benefits, aiming to reduce the group's scope emissions significantly through green energy initiatives.
Throughout the interview, Venn acknowledged the collaborative efforts with local government entities in Mpumalanga, emphasizing their support in driving the project forward as a vital catalyst for the region's development. He expressed optimism about the ongoing cooperation and highlighted the potential for a smooth continuation under the current governance structure.
Looking ahead, Seriti Green plans to expand its renewable energy portfolio and aims to develop three gigawatts of renewable energy capacity in Mpumalanga over the next decade. Venn underscored the group's commitment to fostering a sustainable energy ecosystem and leveraging the region's energy resources to drive economic growth and environmental stewardship. With a promising outlook for the future, Seriti Green's innovative approach to energy production signifies a significant milestone in South Africa's renewable energy landscape.
