TotalEnergies Begins Construction of 260 MW Renewable Energy Project in South Africa

TotalEnergies, together with its partners Mulilo and Reatile Group, has started construction on an ambitious renewable energy project in South Africa.

The project includes a 140 MW wind farm and a 120 MW solar plant, both located near De Aar in the Northern Cape.

Together, these plants will deliver a total of 260 MW of renewable electricity, mainly to Sasol’s Secunda site, where Air Liquide operates large oxygen production facilities.

The financial close for this project was recently completed, paving the way for construction to begin with an investment of R7.5 billion (about $400 million).

The consortium has signed a power purchase agreement with Sasol and Air Liquide to provide renewable electricity for 20 years.

The arrangement will supply about 900 GWh of clean electricity each year, supporting efforts to reduce emissions from industrial operations.

The move to renewable energy is important as South Africa faces frequent power outages and relies heavily on coal for energy production.

De Aar was selected because of its strong potential for renewable energy. TotalEnergies holds a 33.5% stake in the consortium, Mulilo owns 15.5%, and Reatile Group has a majority share of 51%.

This project is not just about generating power; it also focuses on creating local jobs during construction and in ongoing operations.

Bertrand Bouvet, Managing Director of TotalEnergies Renewables South Africa, said these projects will help create jobs and support South Africa’s transition to cleaner energy.

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Funding for the project comes from major lenders including Standard Bank, Absa and Nedbank. The institutions’ support shows increasing trust in renewable energy as a good investment in South Africa’s changing energy landscape.

The plants are expected to be operational by the end of 2026, marking an important step in diversifying the country’s energy mix.

The project also aims to deliver reliable and affordable energy while supporting collaboration between private companies and the government. The renewable energy supplied will help Sasol and Air Liquide cut their carbon emissions while ensuring access to sustainable power.

This initiative fits with South Africa’s broader goals to increase renewable energy in its overall energy mix.

Around 80% of the country’s power still comes from coal, making the shift to renewables essential to reduce greenhouse gas emissions and address climate change.

The inclusion of wind and solar energy in the power grid is expected to play a key role in meeting these environmental goals.

As South Africa works towards sustainable energy solutions, projects like this one are vital for advancing renewable energy.

They improve energy security, create jobs, and engage local communities. With TotalEnergies leading this effort alongside its partners, there is optimism that South Africa can set an example for other African nations looking to adopt renewable energy.

The construction of these wind and solar plants near De Aar is a step forward for TotalEnergies and South Africa’s energy sector.

By investing in clean energy, the consortium is addressing current energy challenges while contributing to long-term sustainability goals. This effort will benefit the economy and environment for years to come.