OYA Energy hybrid project reaches financial close
The Oya Energy Hybrid Project will be jointly owned and operated by ENGIE (35%), G7 Renewable Energies (20%), Meadows Energy (22,5%) and Perpetua Investment Holdings, (22,5%) and is one of the 11 preferred bidders under South Africa’s Risk Mitigation Independent Power Producers Procurement Programme (RMIPPPP).
In 2023, Oya Energy signed a 20-year power purchase agreement with Eskom and an Implementation Agreement with the Department of Mineral Resources and Energy in South Africa. Once operational, the Oya Energy Hybrid Project will provide essential dispatchable energy to the South African grid.
The Oya Energy Hybrid Project stands as a pioneering example of sustainable energy innovation. It combines 155 MW of solar PV power, 86 MW of wind power, and a 92 MW / 242 MWh battery energy storage, all within a single location. This greenfield development spans the Western and Northern Cape Provinces, between the towns of Ceres and Sutherland in South Africa.
At the heart of this groundbreaking project are co-located wind turbines, solar PV arrays, lithium-ion batteries, and a cutting-edge hybrid controller. This integrated system efficiently orchestrates all three technologies, providing dispatchable power to the grid as and when needed. Not only is the Oya Energy Hybrid Project the largest hybrid energy project of its kind in Africa, but it is also globally unique in terms of its technology mix, size, and cost-effectiveness. Its strategic location boasts abundant natural resources and proximity to the grid connection point, complemented by advanced battery storage capabilities.
Mohamed Hoosen, ENGIE Managing Director Renewables AMEA & South Africa Country Manager, said: “The Oya Hybrid project is an innovative first-of-its-kind power solution, and ENGIE is pleased to partner with G7 Renewable Energies to build, own and operate this facility in South Africa. The Oya hybrid project is a testament to ENGIE’s commitment to the long-term low-carbon energy security of South Africa.”
“This is a momentous milestone for G7 and its partners in the Oya Project,” said Dr Kilian Hagemann, CEO of G7. “We are incredibly proud of our team and grateful for the support of our partners. As the original developer of Oya since 2015, G7 led the visionary complex hybrid technical modelling, supplementing the originally planned stand-alone wind farm with optimally sized battery storage and photovoltaic to deliver this first-of-its-kind project. The Oya Hybrid Energy Project demonstrates our expertise and ability to develop complex and efficient hybrid renewable energy projects in South Africa. We look forward to the completion of this state-of-the-art project”.
Romaya Dorasamy, Managing Director at Meadows Energy said: “We are thrilled to announce the success of the Oya Project’s financial close. This milestone is a remarkable achievement for Meadows Energy and an enormous step towards a sustainable and innovative energy future. The Oya Project is not just a power generation initiative, but a testament to our collective capability to create meaningful change.”
Perpetua Holdings director, Logan Govender added: “We have forged a solid and true sense of collaboration with our respected partners on the Oya Project and we are excited by the innovative and high-impact contribution that we are collectively confident it will deliver as part of South Africa’s energy transition.”
Dr Hagemann added that “This project represents the blueprint of a carbon neutral, 100% renewable future power grid – dominated by solar PV, supplemented by large amounts of wind power and storage capacity for balancing surpluses and shortfalls to provide all the power our economy needs without resorting to any fossil fuels. It’s the first time that renewables are providing baseload power.”
The Project will deliver clean power to approximately 180,000 South African homes. It will accelerate the country’s transition to renewable power generation and reduce CO2 emissions by approximately 573 105 tonnes annually, the equivalent of 72 680 cars on the road. The Project falls within the Komsberg Renewable Energy Development Zone (REDZ).
ENGIE is a global reference in low-carbon energy and services. With its 96,000 employees, its customers, partners and stakeholders, the Group is committed to accelerating the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally friendly solutions.
Inspired by its purpose (“raison d’être”), ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers.
In South Africa, ENGIE already has 1.6 GW in operation with a further 350 MW in advanced development and a project pipeline of 4 GW.
Pioneering renewables in South Africa for 15 years, G7 Renewable Energies delivers high-performing, grid-connected projects. Thanks to its highly skilled and multi-disciplinary team, G7 has transitioned from developer to a fully integrated IPP.
Meadows Energy is a proudly South African and Black Women-owned Independent Power Producer transforming South Africa’s energy landscape. The company is dedicated to developing, investing, constructing, and operating clean energy projects, including both Small-Scale Embedded Generation and Utility-Scale Power Plants.
Meadows Energy has played a significant role in creating approximately ±3GW of clean energy projects, with about ±1GW currently in the development phase in Southern Africa. The company’s approach is focused on environmental responsibility and sustainability, ensuring all its operations align with natural surroundings.
Perpetua Holdings is a black-owned investment holding group that was formed in 2012. Perpetua focuses on responsible, sustainable and impact investing through its investment interests in investment management firm, Perpetua Investment Managers, and infrastructure development, particularly in renewable energy, through Perpetua Infrastructure.
Perpetua has to date partnered in two preferred bids in the 2020 Risk Mitigation IPP Procurement Programme by the Ministry of Mineral Resources and Energy in South Africa; two projects in 2022 Bid Window 6 as well as several commercial and industrial projects.
These renewable energy projects are directly connected to the group’s mission and exhibit key benefits of employment creation, societal transformation and incremental power generation while supporting the country’s clean energy transition objectives.
