Phelan Energy Group has announced that in December 2018, its subsidiary, Solar Capital reached financial close on its third solar project. The project, located in South Africa, has a capacity of 86 MW.
Standard Bank of South Africa was the lead arranger of the $100 million project debt. The project located near the town of Loeriesfontein has been contracted under a 20-year power purchase agreement (PPA). Under the agreement, power will be sold directly to the national utility, Eskom, backed by a sovereign guarantee from the South African Government.
Paschal Phelan the founder and the executive chairman of the Phelan Energy Group Ltd., commented on the development in a media release saying, “2018 was a year of significant growth and profitability with the expansion of our international footprint, and brings our international contracted electricity sales to over $3.5 billion”.
Construction in Loeriesfontein is expected to commence in Q2 of 2019, with grid connection to be secured in 2020. The solar project is expected to produce 200 GWh of electricity annually, sufficient to power over 50,000 homes. As part of the project Solar Capital will invest $13.5m in its local community development program.
Moreover, Phelan has also announced that it has completed a 50 MW solar project in Rajasthan, India. The debt funding was provided by Indian financier Power Finance Corporation. In September 2018, Mercom reported on the news of the company achieving financial closure for its 50 MW project in Bhadla.
In May 2017, Phelan participated in the reverse auction of Bhadla Phase-IV Solar Park in Rajasthan, organized by the Solar Energy Corporation of India. It had won the project at ₹2.62/kWh ($0.037/kWh). As reported by Mercom, this was one of the most competitive auction in India at the time.
Image credit: AMPL Cleantech