Prescient Investment Management’s Clean Energy Fund Supports H1 Holdings’ Investment In Grootfontein Solar Farms

Prescient Investment Management’s Clean Energy Fund has committed R220 million to support H1 Holdings’ investment in three Grootfontein solar photovoltaic (PV) farms in Touws River, Western Cape. Each farm will have a capacity of 75 MW, and the funding will be used for their development.

The construction of the solar farms is estimated to take between 12 and 18 months, with the expectation that they will become operational in 2025. These projects were secured through the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which involves a 20-year power purchase agreement for renewable energy generation.

Luzuko Nomjana, a portfolio manager and credit structuring specialist at Prescient, highlighted the positive impact of these solar farms on local communities, including job creation and socio-economic development opportunities. He emphasized the alignment of H1 Holdings’ objectives with Prescient’s focus on offering investors environmentally, socially, and governance-focused products that support renewable energy generation.

H1 Holdings currently holds a 46.5% equity stake in the Grootfontein solar PV farm projects, while Scatec Solar holds a 51% stake and a community trust holds the remaining 2.5%.

The Prescient Clean Energy Fund, established in 2015, has invested in 31 renewable energy projects and has grown to a total value of R3.7 billion. Its investments have contributed to an additional 2.3 GW of clean energy being integrated into the national grid, while also generating 1,343 job opportunities.

Nomjana highlighted that the fund provides investors with access to exclusive projects, offering long-term stable returns and an opportunity to make a significant and lasting contribution to South Africa’s economic development.