Northern Cape, South Africa: A landmark moment for South Africa’s renewable energy sector has arrived as construction commences on the R4.9-billion Ishwati Emoyeni Wind Farm, a pioneering project that marks the nation’s first large-scale wind farm to reach financial close with an energy trader as the offtaker.
The 140 MW wind farm, located in the Northern Cape, is being developed by a consortium comprising African Clean Energy Developments (ACED), Energy Infrastructure Management Services (EIMS) Africa, and NOA Group Trading, with financial backing from the African Infrastructure Investment Managers (AIIM)-managed IDEAS Fund and Reatile Group.
This project signals a significant shift in South Africa’s energy landscape, as NOA Group Trading, having recently secured its trading licence from the National Energy Regulator of South Africa (NERSA), will purchase all the renewable energy generated by the wind farm. This allows NOA to aggregate energy from various sources and distribute it through the Eskom grid to diverse offtakers across the country.
“This marks the first large-scale renewables project in South Africa to reach financial close with an energy trader as the offtaker,” explained NOA Group CEO Karel Cornelissen. “We are now authorised to purchase electricity from Ishwati, other third-party independent power producers, and NOA’s own generation facilities, aggregate it, and wheel it through the Eskom grid.”
The Ishwati Emoyeni Wind Farm, featuring 32 Vestas 4.5 MW wind turbines, is scheduled to begin generating electricity in 2026. It joins two other wind farm projects of the same size, Umsinde Emoyeni and Khangela Emoyeni, developed by the same consortium in the adjacent area.
“We’re delighted to have closed and commenced construction on this complex and pioneering project – the first trader offtake project at scale,” said ACED CEO James Cumming. “It’s the long-term PPAs we sign, such as that with NOA here, that bring these projects to life.”
The project’s financial closure was facilitated by Standard Bank South Africa, acting as the lead arranger. “Together with our partners, we are proud to be the sole mandated lead arranger to this first-of-a-kind project, presenting a long-term solution and response to the market liberalisation in South Africa,” said Sherrill Byrne, Standard Bank project finance, energy and infrastructure finance executive.
The successful financial close and commencement of construction on the Ishwati Emoyeni Wind Farm represent a significant milestone in South Africa’s journey towards a sustainable and diversified energy future. It demonstrates the growing role of energy traders in facilitating the integration of renewable energy into the national grid and underscores the importance of collaboration between private sector players and financial institutions in driving the country’s energy transition.