Yellow Door Energy began construction on Monday, 12 October, of the 49 MW Lion Thorn solar park near Leeudoringstad, in the north-west of South Africa, with commercial operation announced for 2028.
PowerChina has been appointed as the engineering, procurement and construction contractor. Financing was arranged with Nedbank Corporate and Investment Banking, following financial close announced on 2 September.
The electricity will be sold under long-term contracts to PPC, a cement and construction materials producer, and to trader PowerX. It will travel over the public grid through wheeling, a mechanism that allows a private producer to supply customers located far from the plant.
Yellow Door expects output of around 115 gigawatt-hours in the first full year of operation. The company estimates that this electricity will avoid 104,190 tonnes of carbon emissions a year, a forward-looking figure that will depend on the site's actual output and the calculation method used.
For PPC, the deal is meant to reduce its exposure to the cost and availability of conventional electricity in a highly energy-intensive business. The project also illustrates the growth of private electricity contracts in South Africa, where companies are seeking to secure supplies in addition to the national grid.
The developers say the project should create jobs and business opportunities for suppliers in Maquassi Hills and neighbouring communities. However, they have not published the total investment amount, the tariff planned under the purchase agreements, or a numerical jobs target.