S.Africa’s Richest Black: Big blow to billionaire Patrice Motsepe’s solar project

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Gas producer Renegen has scored a significant legal victory in its dispute with Springbok Solar Power Plant over development rights in the Free State.

On 9 April 2025, the Director-General of the Department of Mineral and Petroleum Resources ruled in favour of Renergen’s Tetra4, upholding the company’s appeal against a previous decision concerning land use rights.

The Springbok Solar Power Plant is a development from the SOLA Group, which is 40% owned by billionaire businessman Patrice Motsepe.

Springbok Solar Project is a 195 MWp solar project that will add more than 435,000 MWh of clean energy to the South African grid.

Its dispute with Renergen dates back to 2024 when the gas producer expressed concerns regarding the ongoing construction of the Springbok Solar project in an area designated for future natural gas extraction.

Renergen explained that it is the holder of a valid onshore petroleum Production Right granted in 2012 under the Mineral and Petroleum Resources Development Act (MPRDA).

The company explained that new developments must obtain permission from the Petroleum Production Right holder to execute a co-existence agreement in the same area – which Renergen claimed Springbok never did.

“In an egregious attempt to force the company into granting them such permission, the company noted an unrelated appeal by Springbok Solar challenging aspects of the Production Right, which has no bearing on the case at hand,” Renergen said.

“We believe the challenge by Springbok Solar lacks substance to make changes to the company’s Production Rights and will likely take years before it reaches a court for a decision.”

According to Renergen, multiple solar facilities and battery energy storage system facilities are being planned within the company’s Production Right area.

“We welcome solar developments as a key to transitioning and bolstering South Africa’s energy landscape,” Renergen CEO Stefano Marani said.

However, he said construction commenced on the Springbok Solar project without Renergen’s prior consent or a co-existence agreement.

Therefore, he said Springbok Solar did not take Renergen or the law’s requirements into account.

“The company remains committed to the principles established under the MPRDA and will continue to pursue meaningful engagement for an amicable co-existence agreement,” Renergen said.

Following Renergen’s announcement, SOLA told News24 that its Springbok project has obtained all necessary lawful authorisations to begin construction of its facility and insisted Renergen was consulted.

SOLA said Renergen has subsequently appealed several of the project’s approvals and initiated legal proceedings.

“In defence of these appeals, Springbok has become aware that Renergen’s claim to helium rights is, in fact, unlawful and has therefore commenced an appeal of the amendment to the production right, which was applied for on the basis of a material misrepresentation by Renergen,” News24 reported.

In November 2024, the Mineral Resources Department rejected Renergen’s suspension application, which would have suspended all construction work on South Africa’s largest solar plant.

When announcing this, SOLA Group’s co-founder and executive director, Dr Chris Haw, said Renergen is attempting to use a technicality to appeal the department’s decision to issue Springbok Solar a Section 53 permit, claiming it was not properly consulted.

This permit provides ministerial consent to use the surface of the land in any way that may be contrary to the MPRDA.

SOLA said Springbok Solar submitted written evidence showing it consulted with Renergen on ten occasions over a two-year period, clearly providing Renergen with the layout maps and coordinates of the facility.

Haw said that Renergen raised no objection during any of these engagements.

This led Springbok Solar to conclude that the construction of the solar project would have no impact on Renergen’s Production Rights and would, therefore, not be contrary to the objectives of the MPRDA.

Win for Renergen

Renergen’s Tetra 4
However, on 10 April 2025, Renergen announced via SENS that its appeal was successfully upheld, and the “defective” Section 53 MPRDA approval for Springbok’s solar facility has been formally revoked.

It said the Director-General of the Department of Mineral and Petroleum Resources ruled in favour of Tetra4 on 9 April 2025.

The Director-General upheld Tetra4’s appeal against the Regional Manager of the Department of Mineral and Petroleum Resource’s decision concerning land use rights.

“The Director-General found procedural defects in the approval process by the Regional Manager. Specifically, the Solar Developer failed to consult Tetra4 as required by the MPRDA Regulations,” the company explained.

SOLA response
SOLA managing director of assets Katherine Persson explained to Daily Investor that the decision directs the parties to consult further and provide feedback to the DMRP Regional Manager within 30 days.

After this, the Regional Manager will decide whether to approve the land surface use of the Springbok PV Project.

Persson said Springbok Solar will continue to engage with Renergen in the coming weeks. The DMRE confirmed that the construction of the Springbok PV Project was done with a lawful permit and is completed.

“Springbok Solar will consult with Tetra4 over the next 30 days as directed and report back to DMRE with the results of the consultation, after which they will make a decision whether to approve or not approve the land surface use of the Springbok PV Project,” she said.

Persson said Springbok Solar has received the Department of Mineral Resources and Petroleum (DMPR) decision and is currently considering the next steps.

“We welcome that the DMRP has acknowledged the advanced state of the project and has confirmed that the Springbok Solar PV Project has acted lawfully in accordance with the Section 53 approval granted to it,” she said.

The land in dispute is 0.17 % of Tetra4’s 187,000-hectare Production Right Area and does not form part of Tetra4’s next (currently appealed) phase two plans to develop its existing gas operations.

“Springbok Solar PV has attempted to engage with Tetra4 on several occasions since the dispute was raised by Tetra4 and remains committed to concluding these engagements,” she said.

“Springbok Solar is in the commissioning phase of construction with 195 MW of renewable power ready to help alleviate Eskom’s power deficit and help businesses cut costs and decarbonise their operations.”

“We remain committed to supporting South Africa’s energy future in a legally sound, transparent, and collaborative manner.”

Source: https://dailyinvestor.com/energy/84926/big-blow-to-billionaire-patrice-motsepes-solar-project/

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