Shearman & Sterling is advising a consortium led by Japanese company Sumitomo on the development of the €150 million Dorper wind farm on South Africa’s Eastern Cape. Financing for the project was signed on October 31 and the offtake agreement with Eskom Holdings SOC Limited, a South African-owned utility company, on November 5 2012.
The Dorper project is strategically significant, being one of South Africa’s first wind farm projects to achieve financial close—a major milestone for the country. The wind farm will add clean power into the energy grid in a timely way, thus negating potential power cuts and loss of productivity in the South African economy. The project will also create jobs and training opportunities for the local community and contribute to South Africa achieving its national renewable energy target.
Investors in the consortium are Sumitomo (60%), Dorper Wind Development Pty (15%) and Black Economic Empowerment holding (25%). With this project, Sumitomo becomes the first Japanese company to participate in a wind power generation project in South Africa.
The 100MW Dorper wind farm is expected to be operational in 2014. The electricity generated will be sold under a 20-year power purchase agreement with Eskom, with a payment guarantee from the South African Department of Energy.
The Shearman & Sterling team of lawyers in the firm’s London and Abu Dhabi offices includes Project Development & Finance partner Nick Buckworth and associates Julien Bocobza, Robin Bayley, Amanda Still and finance associate Kate Kimpton.
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