Gestamp Solar signs agreement for PV plants in South Africa

Spanish utility-scale photovoltaic plants developer Gestamp Solar has signed the power purchase agreement (PPA) for two of its solar projects in South Africa.

Totaling a capacity of 30MW the projects will be located in the Northern Cape of South Africa.

Selected in December 2011 under the Renewable Energy Independent Power Producers (REIPP) program in the country the projects have been commissioned by South Africa’s Department of Energy.

Gestamp, a subsidiary of Gestamp Renewables, has also signed a €80m financing agreement for the projects with local financing firms, Nedbank and IDC.

Gestamp Solar CEO Jorge Barredo said that the company is the first to sign a PPA under the REIPP in South Africa.

“These projects will increase Gestamp Solar internationalization, which is already present in every photovoltaic solar market,” Barredo added.

Gestamp owns a stake in these projects and is expected to contribute to the economic development in the regions where the PV plants are located.