Teraco has revealed its intentions to construct a 120-megawatt (MW) utility-scale solar photovoltaic (PV) energy facility in South Africa’s Free State province to tackle persistent power issues. CEO Jan Hnizdo disclosed that the company had successfully obtained its initial grid capacity allocation from Eskom, the nation’s public electricity utility. Investing around R2 billion (~$106 million), the vendor-neutral data centre provider aims to finish the solar plant project within 18 months.
Teraco highlights that the grid capacity allocation from Eskom will facilitate the connection of its proposed 120 MW solar facility to the national electrical grid. The electricity generated will then be transmitted across Eskom and municipal power networks to Teraco’s facilities nationwide.
Teraco anticipates that the 120 MW solar PV plant will generate over 338,000 MWh annually upon reaching total operational capacity.
With Eskom, a state-owned entity responsible for approximately 95% of South Africa’s electricity supply from coal-fired power stations, facing challenges in providing consistent energy, local companies are increasingly turning to alternative energy sources.
In recent years, Eskom’s load-shedding has had a profound impact on business operations and the economy of Southern Africa. To mitigate the adverse effects of load shedding, mining and telecom companies are opting to distance themselves from Eskom, which is facing financial troubles.
Teraco has revealed that to mitigate Eskom’s power deficiencies, it allocates “millions” of rands each month for diesel to fuel its data centres’ generators. According to Hnizdo, the company has maintained 100% uptime over the past two years, despite grid availability averaging around 15% to 20% at specific sites. This reliance on diesel has a substantial financial burden, costing the company millions of dollars monthly. This situation arises as Teraco expands its footprint in South Africa, boasting a critical power load capacity of 186 MW across various campuses, including Isando, Bredell, Cape Town, and Durban.
CEO Hnizdo stressed that obtaining grid capacity allocation signifies a crucial milestone in the company’s renewable energy objectives and its commitment to serving customers efficiently. He emphasised Teraco’s multi-year endeavours to secure these approvals, highlighting the present emphasis on rapid execution. Teraco collaborates with Juwi Renewable Energies South Africa and Subsolar to develop the 120 MW solar PV project, with Juwi overseeing design, procurement, construction, and commissioning, while Subsolar handles the installation process.
