The Red Rocket Consortium achieved Legal Close for three wind projects earlier today. The projects, Brandvalley and Rietkloof wind farms that border the Western and Northern Cape provinces and Wolf wind farm in Eastern Cape, were awarded Preferred Bidder Status in October 2021, under Round 5 or the Fifth Bid Submission Phase of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The agreements were concluded at the IPP Office in Centurion with the signing of the Power Purchase Agreements (PPAs) with Eskom and the Implementation Agreements (IAs) with the Department of Mineral Resources and Energy (DMRE). Legal Close will be followed by the Commercial Close with the Department and Eskom later this month with Financial Close to follow shortly thereafter.
The three wind energy projects will be built over a period of 24 months adding a total 364-MW capacity to the Eskom grid by the end of 2024. In excess of the equivalent of 600 job years for South African citizens will be created during the construction and operation periods for each of the projects. Red Rocket South Africa will coordinate the construction of the wind farms with Vestas wind turbines and local contractors.
The Shareholders of the Consortium with Red Rocket Energy as the Lead Member, AIIM through its IDEAS Fund, Jade-Sky Energy, and the Red Rocket Opportunity Trust will contribute equity to the projects. Project finance funding will be provided jointly by the mandated lead arrangers, Absa and Standard Bank, for the three wind projects.
Red Rocket South Africa has successfully finalised the development of these projects initiated by G7 Renewable Energies (Brandvalley, and Rietkloof) and JUWI Renewable Energies (Wolf).
