Sumitomo signs key agreements to develop 100MW wind farm in South Africa
Japan-based multifaceted business company Sumitomo Corporation has entered into key agreement for the development of the 100MW Dorper wind farm project in South Africa.
The farm will employ 40 wind turbines, each with a capacity of 2.5MW and produced by German-developer Nordex.
A Sumitomo-led consortium had earlier been selected as the preferred bidder for the development of the JPY17bn($212m) project under a IPP Procurement Programme for Renewable Energy, implemented by for the South African Department of Energy.
Electricity produced by the wind farm will be procured by Eskom Holdings under a 20-year power purchase agreement that was signed on 5 November 2012.
Funding for the project is provided by loan agreements with Nedbank Capital, ABSA Capital and Sumitomo Mitsui Banking Corporation.
The construction of the wind project will start in November 2012, and is expected to be operational by July 2014.