USTDA Grant Application for 75MW Solar Project, South Africa

The problem

South Africa is in the throes of an energy crisis, with sustained power cuts crippling the country’s economy and adversely affecting the population. The national power utility, Eskom, urgently needs to generate more electricity, and amongst other sources is looking at renewable energy solutions.

Pele Green Energy (PGE), South Africa’s largest black-owned and managed independent power producer (IPP), wants to develop a 75MW solar photovoltaic power plant to enter a power purchase agreement with Eskom. The company needed to secure $1.1 million to finance a technical, financial and economic feasibility study of the project.

How we helped

Castalia applied to the U.S. Trade and Development Agency for a $1.1 million project development grant, which USTDA approved and awarded to PGE. We assembled a team of engineering and legal experts to advise on the technical, financial and commercial aspects of the project, and as the financial advisors for the project, Castalia will raise $80 million in financing to build the power plant.

Impact

The successful grant application has ensured that PGE can finance the development of the Grootpoort project, a 75MW solar photovoltaic power plant in the Free State. This project will provide hundreds of jobs during construction and will provide clean solar energy to South Africa, positively affecting economic productivity.