OPIC provides funding for 60MW solar project in South Africa

Overseas Private Investment Corporation (OPIC) has approved a $250m financing for a 60MW solar project in South Africa.

OPIC is the US Government’s development finance institution and the financing will enable US-based MEMC Electronic Materials and its subsidiary SunEdison to construct and operate the solar PV plant in Boshoff, Free State province of South Africa.

South African national grid will purchase all the electricity generated by the plant and help reduce carbon emissions by 140,000t per annum.

The project is being developed under the Renewable Energy Independent Power Producer Program with the objective of generating 3,725MW of renewable energy by 2016.

Currently coal-fired plants currently produce 84% of South Africa’s electricity.

OPIC president Elizabeth Littlefield remarked that South Africa’s renewable energy program highlights its leadership in the sector.

"We’re pleased to work with an experienced developer such SunEdison to deliver so many developmental benefits for South Africa, from the reduction of pollution and displacement of GHG emissions to the creation of local jobs and the realization of the country’s BEE program goals," said Littlefield.

The PV plant is the first solar initiative of the agency in South Africa.