Italy's Building Energy has finalised a deal with the South African government to build an 81MWp solar PV plant in Kathu, Northern Cape.
The signing of the power purchase, implementation and financial agreements with the Department of Energy means construction work will begin on the plant immediately.
Building Energy is one of 28 preferred bidders chosen for the first round of South Africa’s Renewable Energy Independent Power Producers Programme, which has been launched to stimulate the growth of the country’s clean energy sector.
Matteo Brambilla, Building Energy Africa’s Chief Executive, said the deal demonstrated the attractiveness of solar energy in South Africa.
“Building Energy's ability to finance the construction of the park through non recourse project finance underscores the strong appeal of predictable cash flows from solar technology and utility-scale project execution expertise,” he said.
Brambilla said the plant would be world's largest PV plant using tracking technology.
The project is due for completion in 2014.