First grid-forming renewable project in SA

Palabora-Mining-Company.jpg

Palabora Mining Company

from BAATSHEBA RAMASHALA in Polokwane
Limpopo Bureau
POLOKWANE, (CAJ News) – MZANSI Energy Consortium has signed a 12-year Power Purchase Agreement with Palabora Mining Company (PMC).

This is a major boost for sustainable mining and South Africa’s clean energy ambitions.

Together, the two will develop one of the country’s largest private renewable energy projects, and the first grid-forming project in the country.

The Marula Green Power initiative will deliver 132MWp of solar photovoltaic (PV) capacity, a 360MWh battery energy storage system, and a dedicated 132kV transmission line to wheel clean power to PMC’s mining operations in Ba-Phalaborwa.

The grid-forming solution will provide stable, dispatchable electricity while supporting South Africa’s broader energy transition.

“This strategic partnership with Mzansi Energy Consortium marks a significant milestone in PMC’s commitment to sustainable operations and energy security,” said Itumeleng Ngoae, PMC’s Executive Manager for Asset Management, Safety, Health, Environment and Quality.

This will be South Africa’s first grid-forming renewable project and one of its largest private-sector independent power producer initiatives.

This is according to Wessel Wessels, Chief Operations Officer at Mzansi Energy Consortium and CEO of Journey2Green.

They are building a dedicated 132kV line to enable wheeling via Eskom’s grid, while incorporating advanced energy management systems and significant battery storage capacity.

“Partnering with Huawei, we’ve adopted an integrated factory-to-field model that shares technology risk across the lifecycle—from design through to operations,” Wessels said.

The solar site was carefully located outside PMC’s operational area to avoid interference with the Kruger National Park’s protected wildlife.

Operations are to commence in early 2027.
Rand Merchant Bank has been appointed Mandated Lead Arranger for the project’s debt financing.

Tsatsi Mahlatsi, CEO of Mzansi Energy Consortium, said, “This project supports our long-standing commitment to South Africa’s energy transition and will deliver significant carbon reduction and grid stability benefits.”

The partners have committed to equity ownership for five tribal communities, creating up to 750 short-term jobs and over 30 permanent roles, with support for local small to medium enterprises.

– CAJ News

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