South Africa’s Wind Power Deal Finalized

February 20, 2025 • Estimated Reading Time: 2 minutes

Key Figures & Findings:
Cennergi Holdings Ltd., a subsidiary of Exxaro Resources, has partnered with G7 Renewable Energies to develop the 140MW Karreebosch Wind Farm. The project between Sutherland and Matjiesfontein will supply Northam Platinum with clean electricity under a 20-year Power Purchase Agreement (PPA). The total investment is $250 million, financed by Nedbank, Absa, and Standard Bank. Leon Groenewald, Cennergi’s Managing Director, highlighted that this deal aligns with Exxaro’s strategy to expand its renewable energy portfolio and support South Africa’s decarbonization efforts.

Statistics & Insights:
Construction is expected to begin in February 2025 and take 24 months. The wind farm will generate 112MW net capacity, adding to Cennergi’s current 297MW and bringing its total managed capacity to 409MW. The project will create 1,030 construction jobs and 17 permanent operational roles, alongside community initiatives in Sutherland, Laingsburg, and Matjiesfontein focused on education, skills training, and healthcare.

Future Implications:
Once operational in 2027, the wind farm could significantly lower Northam Platinum’s reliance on grid electricity, reducing its exposure to Eskom’s price volatility and supply disruptions. Additionally, the project may serve as a model for future industrial-scale renewable energy agreements, encouraging more private-sector investments in wind power.