JOHANNESBURG, South Africa and
BELMONT, Calif., Nov. 6, 2013 /PRNewswire/ -- Leading global
solar energy services and technology provider SunEdison, Inc.,
through its South African affiliate, (collectively "SunEdison")
(NYSE:SUNE) today announced it had secured R1.8 billion
(US$185 million) in foreign debt
funding from the Overseas Private Investment Corporation (OPIC).
This amounts to 75% of the R2.4 billion project cost for the Boshof
Solar Park Project ("Boshof"), located in South Africa's Free State province near
Kimberley.
Electricity generated by Boshof, with an installed capacity of
60MW AC, will feed into the South African grid, under the terms of
a 20-year power purchase and implementation agreement signed with
national power utility Eskom and the Department of Energy. The
plant is scheduled to begin generating electricity in the fourth
quarter of 2014.
Boshof is the first project in South
Africa's Renewable Energy Independent Power Producer
Programme (REIPPP) to be supplied by a local South African
majority-owned photovoltaic (PV) module manufacturer. SunEdison
will maintain a 51% ownership stake in the project, with South
African companies holding the remaining 49%.
Support for the Local Economy and Community
"Access to
a reliable source of energy is essential to addressing a wide range
of development challenges from producing food to educating students
and building modern infrastructure," said OPIC President and CEO
Elizabeth Littlefield. "OPIC is
pleased to be supporting a project that will provide a clean and
reliable source of electricity and help stimulate economic
development."
The Boshof project is expected to create approximately 280 jobs
during its construction and operational phases, and through the use
of local sub-contractors the project is expected to support over
1,000 jobs. Approximately 50% of the project's total value will go
to South African manufacturers supplying local components and
South Africa service providers
including the SunEdison AP90 Single Axis trackers that will be
locally manufactured for the project. Total procurement from
black economic empowered entities is estimated at R685 million
(US$67.9 million).
"Helping improve developing economies by creating jobs is one of
the many ways our company is transforming lives through
innovation," said Pashupathy Gopalan, SunEdison Vice President and
Managing Director for South Asia
and Sub-Saharan Africa. "Boshof is a landmark project which
will benefit the entire South African economy as it contributes to
energy security and creates green jobs throughout the value
chain."
Over R200 million (US$19.7
million) is set aside for projects that will transform the
community by improving access to education and healthcare,
supporting enterprise development and other projects to improve the
quality of life for residents throughout the Free State and
Northern Cape.
Growing Commitment to South
Africa
Construction has begun on two other
utility-scale projects developed by SunEdison in Limpopo province,
Soutpan and Witkop, which together total 58MW contracted capacity.
As with Boshof, these projects rely on local subcontractors
to help improve the overall economy and create employment
opportunities.
Reliable Investment
The Government Employees Pension
Fund's (GEPF) Acting Principal Officer Joelene Moodley said "We are increasing our
investment with SunEdison because we view the Boshof project as a
secure investment for our members and pensioners. This is why we
feel comfortable nearly doubling our investment in SunEdison's
South African projects by R312 million (US$30.8 million) for the Boshof Solar Park.
We believe this a safe place for us to invest and the project is
aligned with GEPF's mandate to back infrastructure projects that
promote economic growth and job creation."
"SunEdison has extensive experience in delivering reliable and
economical solar energy solutions for our customers around the
world, in both the public and private sector. We are using that
experience and our innovative approach to technology and business
development to create new markets. Being part of this historic
milestone for South Africa is very
rewarding," said Gopalan.
About SunEdison
SunEdison is a global leader
in semiconductor and solar technology. SunEdison's semiconductor
business has been a pioneer in the design and development of
silicon wafer technologies for over 50 years. With R&D and
manufacturing facilities in the US, Europe and Asia, SunEdison enables the next generation of
high performance semiconductor devices. SunEdison's solar business
develops, finances, installs and operates power plants, delivering
predictably priced solar energy and services for commercial,
government and utility customers. SunEdison's common stock is
listed on the New York Stock Exchange under the symbol "SUNE."
Forward-Looking Statements
Certain matters discussed in this press release are
forward-looking statements, including that the plant is expected to
begin generating electricity in September
2014, that the project will create approximately 280 jobs
and 1,000 indirect jobs; that R144 million will be distributed for
socio-economic upliftment, and R57 million will support enterprise
development. Such statements involve certain risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements. Potential risks and
uncertainties include normal commissioning risks attendant to large
scale solar projects, delays or interruptions in construction,
deployment or activation; the timely availability of required
permits and authorisations for projects from governmental entities
and third parties; changes in applicable regulatory requirements
and incentives for production of solar power; and general business
and economic conditions, including seasonality of the industry, and
other risks described in SunEdison's filings with the United States
Securities and Exchange Commission. These forward-looking
statements represent SunEdison's judgment as of the date of this
press release. SunEdison disclaims, however, any intent or
obligation to update these forward-looking statements.
SOURCE SunEdison