Anglo American and EDF Renewables have formed a joint establishment, Envusa Energy to develop a regional renewable energy ecosystem (RREE) in South Africa.
Earlier in March, the two companies signed a memorandum of understanding to explore the ecosystem's development, designed to meet the mining giant's operational power requirements in SA.
600 megawatts in first stage of Envusa Energy
In the first stage, Envusa Energy will launch a mature pipeline of more than 600 Megawatts of wind and solar projects in the country.
This step is a major move towards the development of an ecosystem that is expected to generate 3-5 GW of renewable energy by 2030.
"This first phase of Envusa Energy's renewables projects is expected to be fully funded - including by attracting debt financing that is typical for high quality energy infrastructure projects - and ready for construction to begin in 2023," said the companies in a statement on Tuesday.
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This joint establishment comes after the country has been experiencing a record of load shedding. SA depends on state-owned Eskom for electricity.
Eskom's CEO Andre de Ruyter said the utility needs about 6 000 megawatts to stabilise the system.
Ground-breaking renewable energy venture
Envusa is expected to supply the mining giant with a blend of renewable energy generated on Anglo's sites and renewable energy transmitted through the national grid.
Chair of Anglo American's management board in South Africa, Nolitha Fakude said this is a significant milestone in South Africa's clean energy future.
"We are making great strides towards our 2040 target of carbon neutral operations, while contributing to South Africa's just energy transition through our responsible approach.
We believe that the energy transition presents a fresh opportunity for South Africa and the rest of the region to build a clean and inclusive energy ecosystem that can create significant new economic opportunities. I am very encouraged by our progress - affirming Anglo American's commitment to South Africa's next phase of development towards a low-carbon future," said Fakude.
Tristan de Drouas, CEO at EDF Renewables in South Africa Is also looking forward to this ground-breaking innovation and bringing global expertise in renewable energy infrastructure development, design and delivery to Envusa Energy.
"This partnership with Anglo American confirms our long-term perspectives in the country: this 600MW first tranche of projects will be added to the almost 1 GW that EDF Renewables will be building operating in the country by 2023.
"Including 420MW of wind projects in REIPPP Bid Window 5, whose PPAs were signed with Eskom and the DMRE on 22 September 2022. Together, these projects further EDF Group's CAP 2030 strategy, which aims to double our net renewable installed energy capacity worldwide (hydropower included) from 28 GW in2015 to 60 GW by 2030," He said.
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