Revego Africa Energy Ltd (Revego), a fund manager focused on operating renewable energy assets in sub-Saharan Africa, has acquired equity interests in a portfolio of three solar PV plants in South Africa. The combined capacity of these solar PV plants is 52 MW.
Revengo has acquired stakes in the Aries Solar Park and Konkoonsies Solar Park, both facilities located in the Northern Cape province, along with the Soutpan Solar Park located in the Limpopo province. With this acquisition, Revego’s portfolio now includes four solar and three wind assets, all of which have a 20-year power purchase agreement.
Aries and Konkoonsies plants each have a capacity of 11 MW, whereas Soutpan has a capacity of 30 MW. The solar facilities were built as a part of Bid Window 1 of South Africa’s Renewable Energy Independent Power Producers Procurement Program (REIPPPP) and operational since 2014. Globeleq, a leading independent power producer in Africa, is the majority shareholder in all these three projects.
The acquisition is in line with Revego’s strategy of investing in a diversified portfolio of renewable energy projects in Africa, that have an excellent track record of generating stable cash flows and generating an above-inflation dividend yield over a longer period.
The Aries, Konkoonsies, and Soutpan plants combinedly generate around 105,000 MWh of electricity, which is sufficient to power 23,000 households in South Africa. The plants help in avoiding over 29,000 CO2 emissions annually and assisting clean energy transition in the country.
Ziyaad Sarang, Chief Investment Officer of Revego Fund Managers, commented, “Revego’s long-term ambition is to be one of the leading renewable energy investment companies, underpinned by investments in a geographically diverse portfolio of assets that reduce carbon emissions and increase resilience to climate change.”
According to Sarang, the solar projects not only provide affordable and clean energy (SDG 7), but also support the economies in remote areas of the country (SDG 8 – decent work and economic growth) and help build the future’s critical infrastructure (SDG 9 – industry, innovation, and infrastructure).”
The acquisition will be partly funded through a follow-on commitment from UK Climate Investments (UKCI) into Revego worth £15 million, a further endorsement of Revego. The UKCI is a UK Government International Climate Finance vehicle that aims to invest in green energy projects in some of the world’s most carbon-intensive emerging economies.