Grace Ashiru
Teraco, a leading African colocation provider, has announced plans to build a 120-megawatt (MW) utility-scale solar photovoltaic (PV) energy facility in South Africa’s Free State province to address ongoing power challenges. Jan Hnizdo, Teraco’s CEO, revealed that the company had secured its initial grid capacity allocation from Eskom, the country’s public electricity utility. The vendor-neutral data center provider will invest approximately R2 billion (~$106 million) to complete the solar plant project, with an expected completion time of 18 months.
Teraco highlights that the grid capacity allocation from Eskom will facilitate the connection of its proposed 120MW 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 120MW solar PV plant will generate over 338,000MWh 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 centers’ generators. According to Hnizdo, the company has maintained a 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 monthly. This situation arises as Teraco expands its footprint in South Africa, boasting a critical power load capacity of 186MW across various campuses, including Isando, Bredell, Cape Town, and Durban.
CEO Hnizdo emphasized that securing grid capacity allocation marks a pivotal milestone in the company’s renewable energy mission and in serving its customer base effectively. He highlighted Teraco’s multi-year efforts to obtain these approvals, underscoring the current focus on swift implementation. Teraco’s collaboration with Juwi Renewable Energies South Africa and Subsolar drives the development of the 120MW solar PV project, with Juwi responsible for design, procurement, construction, and commissioning, while Subsolar manages the installation process
CEO Hnizdo emphasized that securing grid capacity allocation marks a pivotal milestone in the company’s renewable energy mission and in serving its customer base effectively. He highlighted Teraco’s multi-year efforts to obtain these approvals, underscoring the current focus on swift implementation. Teraco’s collaboration with Juwi Renewable Energies South Africa and Subsolar drives the development of the 120MW solar PV project, with Juwi responsible for design, procurement, construction, and commissioning, while Subsolar manages the installation process….
