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Commercial operations launched at new power plant in South Africa

Jul. 22, 2016


Mitsui & Co., Ltd., ENGIE and two local companies, through a jointly-established project company, announced on July 20, 2016 the commencement of commercial operations at the newly established Avon IPP (Independent Power Producer) power plant in the Republic of South Africa. The IPP project involved the construction and operation of a 670MW diesel fired open cycle power plant near Durban in southern South Africa.

The plant will provide electricity to a South African state-owned power utility company for 15 years from the start of operations, based on a power purchase agreement finalized on June 3, 2013. In addition to Mitsui the business has also received investment from French company Engie (formerly GDF Suez) and two local companies through their own investment vehicles.

Including the Dedisa IPP diesel-fired power plant (335MW output) which started commercial operations on September 30, 2015, Mitsui & Co. is participating in the operation of power generation facilities with a combined capacity of 1,005MW.
Power shortages are a big social issue in South Africa and Mitsui will continue to contribute to the economic development of the country by alleviating these shortages.

Overview of the power generation company

Company name Avon Peaking Power(RF)Proprietary Limited
Type of business Construction, operation, maintenance of diesel fired power plant, and electricity sales
Location Avon Project: KwaZulu-Natal Province, South Africa
Shareholders Mit Energy Southern Africa Ltd (Mitsui & Co. 100% subsidiary): 25%
ENGIE subsidiary: 38%
Local partners: 37%

Engie

Company name ENGIE
Location Paris, France
Type of business Electricity, natural gas, energy and environmental services
Power generation assets 115.3GW
The Avon IPP power plant which commenced commercial operationsThe Avon IPP power plant which commenced commercial operations