- Magnora acquires 92% of African Green Ventures.
- AGV is already in charge of some of Magnora’s development activities in South Africa
- Decommissioning of 35,000MW coal energy by 2050
Magnora, a Norwegian developer, is expanding its presence in the South African solar and wind markets by acquiring 92% of African Green Ventures, a renewable project development company (AGV). The remaining 8% is held by AGV management. AGV is a large-scale solar PV and onshore wind project developer with a proven track record of renewable sourcing projects on behalf of various clients. AGV has project rights to over 800MW of wind and solar PV projects, which is added to Magnora’s existing portfolio of 850MW.
Magnora’s South African portfolio will now total approximately 1.7GW following this acquisition. AGV aims to build a portfolio of over 2GW of solar and wind projects in South Africa while increasing cost efficiency and de-risking through economies of scale. AGV is already in charge of some of Magnora’s development activities, so operational synergies are expected in South Africa. As part of the transaction, Peter Nygren, Magnora’s EVP Strategies, will leave his current position and become an active owner in AGV, pursuing opportunities in South Africa. He will remain a member of Magnora’s corporate advisory team and an active shareholder in Helios Nordic Energy AB.
“We see great opportunities in South Africa, both short and long term. We expect increased power consumption due to economic development and green electrification,” says Erik Sneve, CEO of Magnora. AGV’s approach to attractive sourcing projects complements our methods and capabilities, and we are excited to welcome them to the Magnora team.”
Coal-fired power plants generate over 80% of South Africa’s energy. However, around 10GW of coal capacity is expected to be decommissioned by 2030 and 35GW by 2050. As a result, South Africa is an appealing location for solar, wind and energy storage technologies development.