The plant is located on the Orange River in the Northern Cape of South Africa, and represents the first run-of-river project developed under the country's Renewable Energy Independent Power Producer's Programme (REIPPP).
Kakamas Hydro Electric Power is held by four equity participants, including Hydro 1 SA, Hydro Tasmania South Africa, Old Mutual Life Assurance Company Ltd., and the Industrial Development Corp.
REIPPP is an initiative of South Africa's Departments of Energy and Treasury that has a goal of increasing the country's cumulative renewable portfolio to 3,725 MW.
Energy produced by Neusberg will be sold under a 20-year power purchase agreement to South African utility Eskom.
Work began on the plant in June 2013. At the peak of construction, the project employed more than 350 people.
"In an area characterized by high levels of poverty and unemployment, developing the facility has created many work opportunities," Hydro SA official Niel Theron said.
The small hydro facility will continue to provide benefits for the region throughout its operation, with the Kakamas community holding a 15% share in the plant via the Kakamas Hydro Community Trust.