SA, Saudi Arabia sign R12bn agreement

SA has signed a R12bn renewable energy deal with a Saudi Arabian company, Energy Minister Jeff Radebe announced on Thursday.

Radebe said the Saudi Arabian energy minister‚ Khalid alFalih‚ was committed to cooperating with SA in the energy sector. “We have signed a big deal on the renewable side of R12bn with Redstone and ACWA‚ which is a Saudi Arabian energy company‚ in partnership with the Central Energy Fund for renewable in terms of solar and wind‚” said Radebe.

Three months ago SA signed long-delayed renewable energy contracts worth about R55bn with independent power producers in the first major investment deal under President Cyril Ramaphosa.

The signing of power purchase agreements for the 27 mostly solar and wind projects was held up for over two years under ousted president Jacob Zuma, who favoured a plan to build additional nuclear power plants.

Radebe is part of the delegation accompanying Ramaphosa on a four-day visit to three countries: Nigeria‚ Saudi Arabia and United Arab Emirates.

Ramaphosa spent two days in Nigeria‚ after which he left for Saudi Arabia.

He is due to meet Sheikh Mohammed Bin Zayed Al Nahyan‚ crown prince of Abu Dhabi‚ on Friday in the UAE.

Ramaphosa’s spokeswoman, Khusela Diko, confirmed that during his visit the president secured the investment in Saudi Arabia‚ a commitment which will boost his goal of attracting $100bn in the next five years.

“It’s a fantastic commitment from Saudi Arabia‚ especially coming in the aftermath of the president’s call to have $100bn of investment in the next five years‚” said Radebe.