Hulisani extended a convertible loan to Legend Power Solutions (LPS), a company with an underlying investment in Avon and Dedisa Peaking Power. The convertible loan entitles Hulisani to 9% of the equity in Avon and Dedisa. LPS holds a 27% equity stake in each plant.
• The plants were developed in terms of the Department of Energy’s IPP Peaking Power Generation Project Programme and are designed to operate for short periods during peak demand conditions;
• The Avon and Dedisa plants have a combined capacity of 1005 MW and provide contracted peak power to Eskom; and
• This asset provides opportunities in the operation of OCGT plants in South Africa, as well as the gas economy.
OPERATIONS AND MAINTENANCE
• The Avon and Dedisa OCGT Plants have signed 15-year PPAs with Eskom with the option to renew for another 15 years;
• Hulisani will be entitled to distributable profits from the operation of the Avon and Dedisa OCGT Plants;
• The investment ensures enhanced black participation in the operation of the biggest IPP in South Africa, as well as opportunities for further industrialisation in the gas economy;
• This plant has the potential to convert to gas, thereby moving South Africa towards a low carbon energy production asset;
• It has a plant life that is close to double that of the 15 years in the PPAs, with the potential to renew the agreement for a further 15 years; and