Revego Africa Energy has increased its portfolio of renewable energy investments to nine operating projects, through the acquisition of a 34.5% equity interest in Aurora Wind Power and a 7.5% equity interest in Kathu Solar Park.
Revego’s portfolio now consists of five solar assets and four wind assets, all of which have 20-year purchase power agreements and generate a cumulative 656MW, which it says is enough to power over 960 000 South African homes with clean energy.
The company says the latest acquisitions fit with Revego’s strategy of investing in a diversified portfolio of renewable energy assets in Sub-Saharan Africa that have a track record of generating stable cash flows, and deliver an above-inflation dividend yield over an extended period.
Built as part of Bid Window 2 of the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP), Aurora is an onshore wind project on the west coast of South Africa in the Western Cape. Aurora was completed in June 2015 and has a capacity of 94MW.
Kathu, which was built as part of Bid Window 3.5 of the REIPPPP, is a concentrated solar power plant in the Northern Cape. Kathu was completed in January 2019 and has a capacity of 100MW.
Engie Energy International, a developer, owner and operator of independent power projects in Africa, is the majority shareholder in both projects.
Ziyaad Sarang, chief investment officer of Revego Fund Managers, the investment manager to Revego, comments: “We are pleased to be consistently investing in projects which contribute positively towards South Africa’s just energy transition, both enhancing our commitment to climate change and supporting our local communities.
“At a time of energy insecurity, it is critical that we continue to invest in the local renewable energy sector in order to drive sustainable economic and social development for future generations.”
The Revego investments come as the country witnesses increased activities in the renewables sector, as more public and private entities make a play for clean power.
This week, Eskom welcomed the R9 billion World Bank concessional loan approved for the repurposing of the Komati Power Station. The coal-fired power station is set to become SA’s first station to be repurposed into a renewable energy site.
Also this week, Swedish renewable power producer Scatec started work on a massive project in the Northern Cape, which forms part of the South African government’s Risk Mitigation Independent Power Producer Procurement Programme.
Once operational, the project will have a total solar capacity of 540MW and battery storage capacity of 225MW/1 140MWh, and provide 150MW of dispatchable power under a 20-year power purchase agreement.
President Cyril Ramaphosa added his voice when, during his speech at the COP27 conference in Egypt this week, he outlined the scale and nature of investments needed to achieve decarbonisation goals over the next five years.
He called for bolder and innovative ways to finance just transition projects in developing countries, saying a “one-size-fits-all approach” will not work.
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