Power plans for Mpumalanga - How Seriti is changing the green energy game in South Africa

One of the leading South African coal producers; Seriti Resources, and its renewable energy division, Seriti Green, have released a statement that Seriti Green will start construction on “South Africa's largest wind farm in Mpumalanga, with power supply coming online by 2025". This is a result of the signing of heads between the two entities into a Power Purchase Agreement (PPA) for 155 MW of power that “will be generated by Seriti Green and wheeled through the national grid to Seriti Resources’ coal mining operations.”

This PPA is an important step forward for Seriti Green’s plans in the renewable energy sector and serves as a manifestation of it’s agreements made in the MoU (Memorandum of Understanding) signed amongst Eskom and Exxaro in late 2021.

Partnering with Seriti Green is Standard Bank and RMB, who are proud to be involved in the financing , establishment and growth of the 155 MW enterprise with a capital expenditure cost of R4 billion.

“The project has already received its Environmental Authorisation from the Department of Forestry, Fisheries and the Environment, a critical requirement to start construction.”

Mpumalanga, South Africa's proclaimed coal heartland, will be the location of the wind farm, between Bethel and Morgenzon. It will transform into a viable investment for the province, creating jobs, opportunities, and social investment.

Mike Teke, the CEO of Seriti, spoke on how the agreement would be the first step in the company’s plan to head for carbon neutrality and assisting in the creation of renewable power that will be fed back into the national grid and take strain off of Eskom’s current energy limitations.

“155 MW COULD POWER APPROXIMATELY 165,000 AVERAGE SOUTH AFRICAN HOUSEHOLDS PER YEAR” – MIKE TEKE, CEO OF SERITI

“It is fitting, we think, that this project will be developed in Mpumalanga, the home of coal mining and Seriti’s own operations. We are very mindful of the need for a just energy transition, where the needs of and responsibilities to those most immediately affected – employees, communities and beyond – are considered and planned for. This is just a first step for Seriti Green,” said Mike Teke.

Energy produced from this wind farm will be far more affordable - as much as 40% cheaper - than electricity produced from Eskom claimed Seriti Green CEO Peter Venn.

This PPA is in conjunction with the commitment Seriti Resources made in the MoU signed with Eskom and Exxaro, which detailed Seriti’s dedication to “use renewable wind and solar energy in its facilities through the signing of PPA’s for the procurement of renewable energy.” The MoU also states how Seriti plans to decrease its CO2 emissions by up to 350,000 tonnes per year which is about half of its current emissions.

Source credit: Seritif Resources / www.seritiza.com