The plans see Tronox enter into long-term power purchase agreements (PPAs) with the SOLA Group which will supply 200 megawatts of solar power to Tronox mines and smelters across the country. Through the PPAs, the solar projects are expected to supply around 40% of Tronox’s South African electricity needs.
A Pinsent Masons team was led by Johannesburg-based legal director Emma Roberts, project finance partner Apicksha Patel, construction partner Jurg van Dyk, property legal director Nayna Cara and energy legal director and Environment Adam Gunn.
Commenting on the project, Emma Roberts said: “As South Africa grapples with supply and demand challenges, projects such as Tronox’s PPA with SOLA will play a vital role in safeguarding our energy market and supporting the country’s just energy transition. As the regulatory environment evolves, we anticipate a flurry of PPA activity as other companies across the country explore viable options to boost supply through renewable sources.
Projects that reached financial close on September 9, 2022 should be fully operational in early 2024.
SOLA Group Director and Co-Founder Chris Haw said, “We are thrilled to see large-scale energy consumers like Tronox taking advantage of the opportunity to convert to clean, cost-effective energy. These types of projects are the fastest way to bring new generation capacity online and not only help close the electricity supply gap in our country, but also support the much-needed transition to clean energy and modernization of our electrical network.