Mining giants seal R2.1 billion solar deal

Glencore’s South African ferroalloys division and its joint venture partner Merafe agreed a deal with Pele Green Energy to build a R2.1 billion utility-scale renewable energy plant. 

Nedbank and Absa will provide debt, while Pele will contribute equity, Pele’s Managing Director Gqi Raoleka said in an interview.

The 100-megawatt solar plant will be built at the Glencore-Merafe Chrome Venture’s operation in South Africa’s Free State province, he said. 

“By reducing carbon emissions and increasing the share of renewable energy in the country’s energy mix, the Sonvanger solar plant adds to South Africa’s goal of a low-carbon future,” said Raoleka.

Policy reforms in South Africa now allow companies to construct utility-scale electricity plants, which has seen a jump in private development of renewable energy in Africa’s most-advanced economy.

The country will have 32 GW of installed renewable capacity within the next five years, according to an industry forecast by GreenCape.

The project is Pele’s first for a private client and is part of wider plans to develop 5,000 megawatts of capacity, according to Raoleka.

The development is in line with Glencore’s broader climate strategy and responsible sourcing of commodities, said Glencore’s Ferroalloys CEO Japie Fullard.