- African Rainbow Energy and Absa have partnered to deploy clean energy in South Africa.
- Absa will invest an initial; $34m.
- Both partners seek to develop up to 700MW of clean energy projects.
African Rainbow Energy & Power has launched a renewable energy investment initiative that will invest in about 700MW of green projects. The new venture, African Rainbow Energy, is a partnership between Absa and will invest in solar, wind and biomass energy projects. Absa will provide an initial investment of R500 million ($34 million) and transfer its existing R5 billion renewable energy assets to African Rainbow Energy.
African Rainbow Energy says it has already secured a “deep investment pipeline” and has partnered on several bids into Round 5 of the Renewable Energy Independent Power Producer Programme. The company also plans to work with other private sector players to devise tailored solutions to their energy challenges. The company also plans to work with state-owned utility Eskom to deploy clean energy in South Africa.
Absa’s interim CEO, Jason Quinn, noted that the scale of the bank’s investment in the company indicates the confidence they have in the entity. He added that the bank would also bring its vast experience and expertise in clean energy financing to ensure the venture’s success.