Teraco Secures Grid Capacity Allocation for Solar Energy Facility in South Africa

By Editor


Teraco, Africa’s leading interconnection hub and vendor-neutral data center provider, has announced a significant milestone in its renewable energy endeavors.

The company, a subsidiary of Digital Realty, has secured its first grid capacity allocation from Eskom, South Africa’s national electricity utility. This allocation paves the way for Teraco to commence construction on a 120MW utility-scale solar PV energy facility in South Africa’s Free State province.

The grid capacity allocation granted by Eskom allows Teraco to connect its planned 120MW solar facility to the national electrical grid. The electricity generated will be transmitted across Eskom and municipal power networks to Teraco’s facilities throughout South Africa.

Jan Hnizdo, CEO of Teraco, expressed enthusiasm about this development, stating, “This allocation is a significant step towards meeting our renewable energy ambitions and those of our clients. It is also only the first phase of our longer-term renewable energy commitment. We have been on a long journey over the last few years to obtain these approvals, and our aim now is to execute quickly on the opportunity.”

Highlighting the significance of the project in addressing energy challenges in South Africa, Hnizdo added, “This will be a unique approach in Africa since Teraco will not only own its data center facilities but also a significant renewable energy source with which to power them, creating a sustainable energy path to support growth.”

Upon completion, the 120MW solar PV plant is projected to generate over 338,000 MWh annually, contributing significantly to Teraco’s goal of achieving 100 percent clean energy. Bryce Allan, Head of Sustainability at Teraco, emphasized the importance of the project in their sustainability efforts, noting the deployment of rooftop solar integrated into their facilities over the past two years.

Teraco has partnered with JUWI Renewable Energies South Africa and Subsolar to develop the solar PV plant. JUWI will oversee the design, procurement, construction, and commissioning of the facility. To finance the project, Teraco has secured a green loan, marking a significant milestone in its renewable energy strategy.

The initiative underscores the importance of wheeling renewable energy across electrical grids, facilitating the transmission of power from renewable energy producers to end-users in urban areas. This approach maximizes renewable energy generation potential and supports the transition to a more sustainable energy future.

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