SA’s PMC signs 12-year renewable energy deal

Palabora Mining Company (PMC) and Mzansi Energy Consortium have signed a 12-year Power Purchase Agreement (PPA) to develop one of South Africa’s largest private renewable energy projects.

The Marula Green Power initiative will deliver 132MWp of solar photovoltaic (PV) capacity, a 360MWh battery energy storage system (BESS), and a dedicated 132kV transmission line to wheel clean power to PMC’s operations in Ba-Phalaborwa.

This will also be South Africa’s first grid-forming renewable energy project, capable of delivering stable, dispatchable electricity to support both PMC’s copper production and the country’s energy transition goals.

PMC commits to clean energy future

“This strategic partnership with Mzansi Energy Consortium marks a significant milestone in PMC’s commitment to sustainable operations and energy security,” said Itumeleng Ngoae, Executive Manager of AMSHEQ at PMC. “Wheeled solar power with battery storage aligns with our goals to cut carbon emissions, reduce costs, and strengthen community development in Ba-Phalaborwa.”

The project is fully compliant with all regulatory requirements, including an approved Environmental Impact Assessment (EIA), Eskom’s grid connection protocols, and authorisations from the National Energy Regulator of South Africa (NERSA).

A first for South African energy infrastructure

According to Wessel Wessels, COO of Mzansi Energy Consortium and CEO of Journey2Green, the project is a milestone for the country’s renewable energy sector.

“We are developing one of the largest private-sector IPP initiatives in South Africa. The 132kV line enables wheeling through Eskom’s grid, supported by advanced battery storage and energy management systems,” he said. “With Huawei as our technology partner, we’re applying a fully integrated factory-to-field model.”

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The project site is located outside PMC’s operational zone to avoid environmental disruption, particularly near the Kruger National Park. The site selection and system design consider local soiling conditions and efficiency factors, ensuring sustainable performance.

Construction to begin after financial close in 2025

The project is scheduled to reach financial close by Q4 2025, with construction commencing shortly thereafter. Commercial operations are expected to begin in early 2027, according to Tsatsi Mahlatsi, CEO of Mzansi Energy Consortium. Rand Merchant Bank has been appointed as the mandated lead arranger for the project’s debt financing.

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“This project reflects our deep commitment to enabling South Africa’s energy transition while delivering long-term benefits for the grid and the environment,” Mahlatsi added.

Empowering communities through energy transition

Beyond clean energy, the Marula Green Power project is designed to leave a lasting impact on local communities. Through Mzansi’s localised development model, the project will create up to 750 construction jobs and more than 30 permanent roles while offering equity participation to five local tribal communities.

“This is about more than megawatts,” said Tumi Mogoera, CMO at Mzansi Energy Consortium. “It’s about shared value. We’re aligning the project with Ba-Phalaborwa’s socio-economic priorities and PMC’s community investment goals.”

Since 2023, extensive community engagement has been central to the project, ensuring transparency and inclusive development at every stage—from feasibility to operations.