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Solarpack commences operations in south africa with its local partner Kabi Energy

The company is born with a project portfolio of over 50 MW, which represents an investment of c. EUR 135 million

Getxo, 30 September 2011. - Solarpack Corporación Tecnológica S.L. ("Solarpack"), a Spanish multinational dedicated to the development, construction, consultancy and third party services in the field of the solar photovoltaic (PV) technology has just started operations in South Africa through a joint venture with its local partner, Kabi Energy (Pty) Ltd (Kabi Energy).
The joint venture, Kabi Solar has been established with a project portfolio of over 50 MW; which represents an approximate investment of approximately €135 million. The most advanced project is a 16.38 MW AC plant located outside Kimberley in the Northern Cape Province, at a site that the Company regards as optimal, due to the high radiation levels and the good access to the electricity transmission grid present in the area. In addition, the project has support from local and provincial social and industrial stakeholders.

With this project, Kabi Solar will submit a bid in the first set of rounds of the South Africa Department of Energy’s (DoE) recently announced Renewable Energy Independent Power Producer Procurement (REIPPP) programme, whereby 20 year PPAs of up to 3 750MW will be awarded to renewable energy developers over five procurement rounds commencing in November 2011. Of this allocation, it is anticipated that 1 450MW will be awarded to solar PV projects.

Kabi Energy brings to the joint venture the local knowledge of the South African electricity sector through its understanding of the regulatory and infrastructure finance, regimes of the country: in addition Kabi Energy’s empowerment credentials allow Kabi Solar to be compliant with the South African government’s affirmative action requirements. This skills set, combined with Solarpack’s technical expertise and strong track record of developing projects in emerging market jurisdictions make both parties confident of the future success of Kabi Solar. More importantly, over the 10 months of discussions held between the companies’ before finalizing the joint venture agreement, it was discovered that there was a strong compatible culture in their approach to business.

South Africa represents a strategic market for Solarpack due to its high levels of solar radiation, its electrical base load and consumption, its level of development and relative economic stability within the region. Moreover, the potential for solar development in the country was reflected in the IRP launched by the DoE in April this year, which anticipates procurement of a total of 8,4 GW of solar PV generation between 2012 and 2030 at a speed of 300 MW/year until 2024.

Pablo Burgos, CEO of Solarpack said recently "that with the signing of this joint venture, Solarpack wishes to shows its firm commitment to South Africa, where Kabi Solar is already fully operational ”. The CEO has great expectations in South Africa, “we already have a well established project portfolio and we hope to try to demonstrate the great possibilities our sector has in this region, as we have already done in South America and other parts of the world”.

Through this joint venture, Solarpack is further confirming its ambitions to expand internationally. Including South Africa, the company is now present in 6 countries over 3 continents with operations in Spain, USA, France, Chile and Perú.

Johannesburg, 5 May 2012 - Kabi Energy and Kabi Solar recently mandated National Empowerment Rating Agency (Pty) Ltd ("NERA") to perform a BBBEE Contributor status verification process on a number of Navitas Group companies, including Kabi Energy and Kabi Solar. Kabi Energy was awarded a Level 3 Contributor for its BBBEE Status and a BBBEE Recognition Level of 110%, whilst Kabi Solar's BBBEE Status was measured as Level 4 with a BBBEE Recognition Level of 100%

July 12th 2011 – Kabi Energy enters into land agreements for Kimberley solar project

Kabi Energy (Kabi) is pleased to announce that it has recently entered into definitive land agreements with De Beers Consolidated Mines Limited (De Beers) to develop a solar photovoltaic (PV) project on a site owned by De Beers near Kimberley in the Northern Cape Province. The site, which is situated adjacent to Kimdustria industrial area, is part of an initiative by De Beers to facilitate the development of independent renewable energy projects on sites identified by the company in the Northern Cape Province. In 2010 De Beers initiated a tender process for both solar PV and wind projects, and after an exhaustive selection process, awarded 60 ha sites to three solar PV developers, of which Kabi is one.

The land agreements allow Kabi to enter into a long term notarial lease with De Beers in order to construct and operate a solar PV facility on the site. Kabi aims to sell the energy generated by the facility to Eskom under a 20 year power purchase agreement (PPA) under the Renewable Energy Feed-In Tariff (REFIT) procurement process about to be launched by the Department of Energy, to introduce renewable energy into South Africa's electricity generation mix.

Kabi intends to develop the Kabi Kimberley Solar PV Project in partnership with Solarpack Corporacion Tecnologica SL (Solarpack) of Spain, who are a specialist solar PV development and management company, with offices in Spain, France, USA and South America. Kabi and Solarpack aim to ready the project for the first round of the REFIT procurement process, which is anticipated to award PPAs to successful projects before the end of 2011. With the recent announcement in the Integrated Resource Plan (IRP2010) that government has ambitions for renewable energy to supply up to 43% of South Africa's electricity generation over the next 20 years, Kabi hopes that this will be the first of a number of solar PV projects to be built in the Kimberley region.