Engie-led South Africa’s Oya Energy Hybrid Project secures financial close

By Elena Kachkova in Johannesburg February 14, 2024

Oya Energy Hybrid Project, aimed at bolstering South Africa's grid resilience, has reached financial close, project partners announced on February 14.

The project is owned and operated by French utility group Engie SA, alongside G7 Renewable Energies, which is the original developer of Oya since 2015, Meadows Energy and Perpetua Investment Holdings, Renewables Now reports. Engie holds a 35% stake, while G7 Renewable Energies, Meadows Energy, and Perpetua Investment Holdings possess shares of 20%, 22.5%, and 22.5%, respectively.

Positioned strategically between the towns of Ceres in the Western Cape province and Sutherland in the Northern Cape province of South Africa, the hybrid development integrates diverse energy sources, featuring 155 MW of solar photovoltaic (PV) power, 86 MW of wind power, and a 92-MW/242-MWh battery energy storage system.

The Oya project is one of the 11 preferred bidders under South Africa's Risk Mitigation Independent Power Producers Procurement Programme (RMIPPPP). Last year, the project sealed a 20-year power purchase agreement (PPA) with South Africa’s state-owned utility Eskom, in addition to an implementation agreement with the Department of Mineral Resources and Energy (DMRE).

“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,” the announcement said.

Upon completion, the project will provide clean, sustainable power to approximately 180,000 South African households, underscoring its pivotal role in advancing the nation’s energy transition agenda and meeting burgeoning electricity demands in an environmentally responsible manner.

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