Harrison and White Investments, a South African diversified industrial group, has signed a US billion (about R110 billion) deal with the Lesotho government to develop the largest renewable power project in Africa.
The wind and hydro power project, the Lesotho Highlands Power Project (LHPP), will aim to supply power to Eskom in South Africa and to Lesotho. It’s expected to create 10 000 jobs during construction and 1 500 permanent jobs in Lesotho.
South Africa’s renewable energy sector is also set for a boost as a priority area of government’s New Growth Path economic plan. It is also one of the main beneficiaries of the Industrial Development Corporation (IDC’s) new five-year investment plan.
The New Growth Path aims to create 5 million jobs in 10 years. Earlier this year, Ebrahim Patel, minister of economic development, announced that as part of this endeavour, about R25 billion would be invested, mainly by the IDC, in improving renewable energy and the green economy in South Africa.
The developer of the LHPP is Breeze Power (Pty) Ltd, a Lesotho-domiciled company owned jointly by the government of Lesotho and Harrison and White Investments.
Breeze Power spokesperson Lee-Ann Louverdis said Harrison and White Investments investigated several options, including some in SA, before deciding on Lesotho’s Maluti Mountains as the ideal location for harnessing the natural resources of wind and water because the area offered “ideal wind conditions”.
“There are a number of environmental challenges in Lesotho, including high elevations, temperatures which sometimes drop to minus 20°C in winter, high wind speeds and one of the highest lightning strike rates in the world,” she added. The project will be rolled out during the next 10 to 15 years, and is also likely to significantly benefit South Africa.
“It will substantially enhance South Africa’s currently overstretched power generating capacity, particularly by delivering transmittable power during critical peak load periods,” according to Harrison and White. The project intends to ultimately generate up to 6 000MW wind power. This will be integrated with 4 000MW of pumped-storage hydropower to provide green scheduled power during peak and standard times to South Africa.
Harrison and White Investments and the Lesotho government will provide equity finance, while unnamed Chinese firms will provide loans, Harrison and White said. – Denene Erasmus
