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Gestamp Solar, a developer of utility-scale PV plants, has secured €80 million (US$102 million) to fund two PV projects in South Africa after signing an agreement with two local financing firms, Nedbank and IDC.

After securing the funds, the company also signed power purchase agreements (PPAs) for the projects which have a combined capacity of 30MW.

Jorge Barredo, CEO of Gestamp Solar stated: “We are very proud of being the first company to sign a PPA under the Renewable Energy Independent Power Producer Programme (REIPPP) in South Africa. These projects will increase Gestamp Solar internationalisation, which is already present in every photovoltaic solar market.”

Located in Northern Cape, the two projects will be built under South Africa’s Renewable Energy Independent Power Producer Programme (REIPPP) after being selected in the programme’s first round of bidding. In total 28 projects were selected under the first bidding round.

In October media reports revealed that South Africa will procure an additional 3.2GW of renewable energy capacity by 2020 under the REIPPP. The programme had originally called for the procurement of 3,725MW in renewable energy capacity but media reports reveal that it has near-doubled the capacity and is now able to offer 4,365MW of new capacity through future bidding rounds.

Gestamp Solar will become shareholder of the projects with a ‘Community Trust’, which has been established in the areas of the proposed sites. According to the company, this will help contribute to the economic development of the areas.