Client Mainstream Renewable Power recently announced it had reached financial close and commenced construction of a wind project and two solar PV projects in South Africa valued at nearly $636 million. All three projects are scheduled to be fully operational by mid 2014
Ireland-based Mainstream led a coalition that bid for and won licenses for the projects from the South African government, which recently signed agreements with the winning bidders under its Renewable Energy Independent Power Producer Program (REIPPP). Stoel Rives attorneys ALAN MERKLE and DAVID HATTERY served as lead counsel for Mainstream, advising on engineering and procurement contracts (EPC), operations and maintenance agreements (O&M) and turbine supply agreement (TSA).
The three projects are:
"This milestone reinforces the leading position of Mainstream in the South African electricity market," said Eddie O'Connor, Mainstream's Chief Executive.
The projects were in negotiation for four years. Mainstream was responsible for gaining all consents, grid connections, project financing, construction contracts and equipment procurement, and will also manage construction under the supervision of a joint steering committee with Globeleq, a London-based emerging markets power company and Mainstream's strategic equity partner on the projects. Mainstream's local partner is renewable energy developer Genesis Eco-Energy, which has been active in South Africa since 2011.
The projects will create hundreds of construction jobs and should eventually produce 635 GWh of electricity, enough to supply up to 48,000 households and displace approximately 628,000 tons of carbon emissions per year.
"We applaud Mainstream and the South African government in these amibitious projects, which will bring significant economic benefits to the project areas and clean energy to South Africa," said ALAN MERKLE, Stoel Rives Firm Chair and client lead for Mainstream.
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