In a major boost for sustainable mining and South Africa’s clean energy ambitions, Mzansi Energy Consortium has signed a 12-year Power Purchase Agreement (PPA) with Palabora Mining Company (PMC). Together, the two entities plan to develop one of the country’s largest private renewable energy projects, and the first grid-forming project in South Africa.
The Marula Green Power initiative will deliver 132 MWp of solar photovoltaic (PV) capacity, a 360 MWh battery energy storage system (BESS), and a dedicated 132 kV transmission line to wheel clean power to PMC’s mining operations in Ba-Phalaborwa, in Limpopo. The grid-forming solution will provide stable, dispatchable electricity and support South Africa’s broader energy transition.
PMC commits to sustainable energy
“This strategic partnership with Mzansi Energy Consortium is a significant step for PMC in its commitment to sustainable operations and energy security,” said Itumeleng Ngoae, PMC’s Executive Manager for Asset Management, Safety, Health, Environment and Quality (AMSHEQ). “Wheeled solar power coupled with battery storage aligns with our goals to reduce carbon emissions and operating costs, as well as strengthening community development and sustainable mining in Ba-Phalaborwa.”
The facility will comply with all regulatory requirements, including the Environmental Impact Assessment (EIA), Eskom grid connection protocols, and approvals from the National Energy Regulator of South Africa (NERSA).
One of SA’s largest IPP initiatives
Wessel Wessels, Chief Operations Officer at Mzansi Energy Consortium and CEO of Journey2Green, said: “This will be South Africa’s first grid-forming renewable project and one of its largest private-sector IPP initiatives. We’re building a dedicated 132 kV line to enable wheeling via Eskom’s grid and the plant will incorporate advanced energy management systems and significant battery storage capacity. Partnering with Huawei, we’ve adopted an integrated factory-to-field model that shares technology risk across the lifecycle, from design to operations.”
The solar site is located outside PMC’s operational area to avoid interference with the Kruger National Park’s protected wildlife. A full EIA has been completed to ensure environmental compliance and system efficiency, addressing the high soiling levels in the region.
Operations to commence early 2027
“Rand Merchant Bank has been appointed as Mandated Lead Arranger for the project’s debt financing,” added Tsatsi Mahlatsi, Chief Executive Officer of Mzansi Energy Consortium.
“We expect financial close in Q4 2025, with construction to begin shortly after that and commercial operations to commence in early 2027. This project supports our longstanding commitment to South Africa’s energy transition and will deliver significant carbon reduction and grid stability benefits.”
Beyond its environmental benefits, Marula Green Power is designed to leave a lasting legacy in the Ba-Phalaborwa region.
“Matching this project to applicable socio-economic needs was key,” said Tumi Mogoera, Chief Marketing Officer at Mzansi Energy Consortium. “Our localised development model ensures inclusive benefits during all project phases – from feasibility, through construction and operation. We’ve committed to equity ownership for five tribal communities, creating up to 750 short-term jobs and over 30 permanent roles, with strong support for local SMMEs.”
Community engagement
Since 2023, community engagement has been a core focus for PMC, in line with its social investment priorities and the development needs of Ba-Phalaborwa.
The Marula Green Power project underscores how renewable energy can power South Africa’s industrial core and at the same time uplift local communities and preserve natural ecosystems. As PMC advances its sustainable mining journey, Mzansi Energy Consortium is committed to delivering innovative, scalable clean energy infrastructure that benefits people and the planet.
Mzansi Energy Consortium is a leading renewable energy developer in South Africa, formed through a partnership between Summit Partners and Journey2Green. The consortium delivers bankable, technically advanced clean energy projects with a strong emphasis on socio-economic upliftment.
For more information visit: www.mzansi.energy/
