Glencore, Merafe Partner with Pele Green Energy for $116M Solar Plant
TLDR
- Glencore Plc and Merafe Resources partner with Pele Green Energy to build a 100MW solar plant in South Africa’s Free State province.
- The Sonvanger plant, with a cost of 2.1 billion rand, is financed by Nedbank Group Ltd. and Absa Group Ltd., with Pele providing equity.
- The renewable energy project supports South Africa's policy reforms for private electricity generation, aiming for a low-carbon future and significant renewable capacity growth.
Glencore Plc’s South African ferroalloys division and joint venture partner Merafe Resources have partnered with Pele Green Energy to build a 100-megawatt solar plant in South Africa’s Free State province. The Sonvanger plant, costing 2.1 billion rand ($116 million), will be financed through debt provided by Nedbank Group and Absa Group, with Pele contributing equity.
The renewable energy project aligns with South Africa’s policy reforms allowing utility-scale private electricity generation. It also supports the country’s goal to achieve a low-carbon future, with an industry forecast by GreenCape predicting 32 gigawatts of installed renewable capacity within five years.
Pele Green Energy, in its first private client project, aims to develop 5,000 megawatts of capacity. For Glencore, the plant aligns with its climate strategy and responsible commodity sourcing goals.
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Key Takeaways
The partnership between Glencore, Merafe, and Pele highlights the rising role of private investments in South Africa’s renewable energy sector. Projects like Sonvanger contribute to reducing carbon emissions and diversifying energy sources, showcasing how policy reforms can drive sustainability in Africa’s most industrialized economy.
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