The joint venture, Kabi Solar, has been incorporated with a portfolio of over 50 MW, which represents an approximate investment of €135 million. The most advanced project in development is a 16-MW plant on the outskirts of Kimberley in the Northern Cape province. It is sited in an area that the company considers to be optimal, since solar radiation is very high and it is close to the appropriate electrical infrastructure. In addition, the project has the support of local and provincial stakeholders of an industrial and social nature.
Kabi Solar will present this project in one of the first rounds of the Renewable Energy Procurement Independent Power Producer (REIPP) programme: a power purchase initiative recently launched by the South African Department of Energy through which 20-year PPAs will be awarded for a total of 3,750 MW of renewable capacity in five rounds starting in November 2011. 1,450 MW of this total is reserved for PV projects.
Kabi Energy will bring to the joint venture local knowledge of the South African electricity market through its understanding of the regulatory framework and private structured finance in the country. In addition, the shareholder structure of Kabi Energy will enable Kabi Solar to comply with the requirements of economic empowerment of minorities established by the South African government.
These characteristics, together with Solarpack’s expertise and track record in developing markets, make a successful formula for Kabi Solar. Furthermore, talks between Kabi Energy and Solarpack lasted for more than 10 months before the signing of the partnership agreement, giving the two companies time to meet and confirm that their corporate cultures were highly compatibility and that they shared similar business visions.
South Africa represents a strategic market for Solarpack given its high levels of solar radiation, electricity demand and infrastructure, economic development and relative stability in the region. In addition, the potential for development in the country was reflected in April 2011 with the publication of the South African Department of Energy’s Integrated Resource Plan that provides for the installation of 8.4 GW of photovoltaic solar power from 2012 until 2030, at a rate of 300 MW/year until 2024.
"This joint venture shows Solarpack’s firm commitment to South Africa, which is now fully operational through Kabi Solar," said Pablo Burgos, Solarpack’s CEO, adding "we have an established portfolio [in South Africa], and we hope to demonstrate the great potential of our sector in this area, as we have already done elsewhere in the world".
Solarpack is already present in six countries across three continents (Europe, America and Africa) and has offices in Spain, the United States, France, Chile and Peru.
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