Situated near Swellendam in the Western Cape, the Overberg Wind Farm will feature 39 Goldwind 6.2MW turbines, with commercial operations expected to commence by early 2027.
Image: Supplied
The Overberg Wind Farm project has achieved financial close with leading renewable energy independent power producer, Red Rocket.
This landmark initiative is poised to play a crucial role in South Africa's ongoing transition towards clean energy, heralding a new era in renewable resource development.
When fully operational, the Overberg Wind Farm will stand as South Africa's largest privately developed wind farm, promising a total export capacity of 380 megawatts (MW).
The first phase of the project will secure a substantial 230MW through a long-term Power Purchase Agreement (PPA) with Richards Bay Minerals (RBM), a subsidiary of the Rio Tinto Group.
This collaboration is predicted to deliver around 750 gigawatt-hours (GWh) of clean energy annually, marking a significant reduction in RBM's carbon footprint by approximately 30%, equating to a reduction of 0.7 million tons of CO₂e per year.
Financing for this transformative project has been spearheaded by the Development Bank of Southern Africa (DBSA), in collaboration with Absa Bank and Standard Bank.
Their involvement not only highlights their commitment to financing sustainable infrastructure but also underlines the importance of investment in projects that promote economic growth and energy security in the region.
Mpho Mokwele, group executive for transacting at DBSA, said this was yet another step in the bank's mission to ensure energy security in South Africa while advancing Africa’s prosperity.
"By financing transformative projects like the Overberg Wind Farm, we are not only enabling a cleaner, more resilient energy future but also ensuring that no one is left behind in the transition," Mokwele said.
"Access to reliable, sustainable energy is a key driver of economic inclusion, and we remain steadfast in our commitment to supporting projects that uplift communities, namely through our additional funding support for the Red Rocket Opportunity Trust and powering Africa’s economic growth."
Situated near Swellendam in the Western Cape, the Overberg Wind Farm will feature 39 Goldwind 6.2MW turbines, with commercial operations expected to commence by early 2027.
The project is positioned not only as a significant advancement in renewable energy but also as a long-term investment in South Africa’s energy security.
Lungile Tom, head for project finance, highlighted the importance of strong financial partnerships in delivering large-scale renewable energy solutions.
"Overberg Wind Farm exemplifies what is possible when ambitious renewable energy goals are backed by committed financiers and industry expertise," Tom said.
BUSINESS REPORT