Capitalising on high sunshine, Solar Capital selected as preferred bidder for solar energy

13 Dec 2011

Solar Capital has been selected by the Department of Energy (DoE) as a preferred bidder in an R18 billion deal to supply South African energy grid with electricity generated by its photovoltaic solar farms. Dr Mamphela Ramphele chairs the renewable energy company, based in Cape Town, which was founded by CEO Paschal Phelan, who immigrated to South Africa ten years ago from his native Ireland.

The solar farm, located at De Aar, is part of the larger footprint of 25 solar farms that Solar Capital is developing in the Northern Cape, where solar irradiation and thus electricity generation is double the European levels. This 75-megawatt installation is the first phase of one of the world's largest solar farms, expected to total 300 megawatts.

The company plans to invest over R2 billion and will be bidding for additional licenses for its 50 000 hectares of land in the Northern and Western Cape provinces. The solar farms are located in areas of excessive sunshine that makes this land arid and non-productive for agricultural purposes.

Dr Ramphele, who specialises in problems concerning social development, commented, "The DoE's Renewable Energy programme is inspiring in that it makes a comprehensive social and economic upliftment programme a prerequisite for participation in this bidding process, which also sets strict thresholds for local content manufacture. We are bringing rejuvenation to the Northern Cape and converting what is seen as excessive sunshine into jobs and revenue that will transform the lives of thousands of disadvantaged rural dwellers. I am particularly happy that this investment will have 10% local community equity participation."

Phelan added, "Our solar PV panels technology is proven over 25 years. We will install in volumes of up to 500 000 panels in a single location. They will convert solar rays directly into electricity that will then be fed into the national grid. The panels have no moving parts, no emissions, are 100% environmentally friendly and are fast to install."