Independent power producer Globeleq and financial services group Standard Bank have renegotiated repayment terms of a senior debt facility allocated to two solar power projects in South Africa’s Northern Cape Province.
The agreement reduces the repayment costs for a $37-million loan provided for the 11 MW Aries and 11 MW Konkoonsies solar power projects. The projects were commissioned in 2014 under South Africa’s Renewable Energy Independent Power Producer Program.
Mike Scholey, CEO of Globeleq, stated: “Restructuring the financing terms of these projects continues to be of significant benefit to Eskom and to South African consumers. We have reduced the cost of power at these two plants by around ZAR129 million over the remaining ten years of the power purchase agreement.”
The milestone will result in decreased wholesale electricity prices generated by the projects and free funds for shareholders to allocate towards other power projects, according to Globeleq.
