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GDF SUEZ enters South African power generation market

GDF SUEZ has announced its first power generation projects in South Africa after signing Power Purchase Agreements (PPAs) for two power plants with a combined capacity of 1,005 MW. GDF SUEZ together with its partners Legend Power Solutions (South Africa), Mitsui (Japan), and The Peaker Trust (South Africa) have signed the PPAs for two greenfield open-cycle turbine power plants of 335 MW (Dedisa) and 670 MW (Avon), which are located in the Eastern Cape Province and in the KwaZulu-Natal Province respectively. The total investment cost for the two plants is around €780m. Full financial close of the two plants is anticipated shortly. Commercial operation is expected to start at Dedisa in 2015 and at Avon in 2016.

The Project Companies that own the open-cycle plants – Dedisa Peaking Power (Eastern Cape) and Avon Peaking Power (KwaZulu-Natal) – are each owned 38% by GDF SUEZ, 27% by Legend Power Solutions, 25% by Mitsui and 10% by The Peaker Trust.

In addition, GDF SUEZ is actively developing further projects in South Africa, including wind and a captive coal plant in the Northern Province, with a capacity of 600 MW, expandable to 1,800 MW. In May 2013, the group signed the Power Purchase Agreement for West Coast One, a 94 MW wind project in the West Cape Province.

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