- UK independent power producer (IPP) Globeleq has announced refinancing the Soutpan solar PV plant.
- The 31MWp facility is one of the first to be awarded under the Renewable Energy Independent Power Producer Procurement Programme (REIPPP).
The Soutpan solar PV plant refinancing was completed in a deal led by Standard Bank alongside the project’s original lender, Vantage Green X Fund. According to Globeleq, which holds a 51% stake in the Limpopo-based solar plant, restructuring Soutpan’s $71 million senior debt has several benefits.
The wholesale price of the plant’s energy generates a more effective capital structure that frees up money for shareholders to reinvest in the power industry and quickens capital distributions to community shareholders.
The South African government developed the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) to encourage private investment in renewable energy. Soutpan is one of the first projects to be licensed under this program. Eskom and Southpan have a 20-year power purchase agreement (PPA). Kurisani Community Trust and Izingwe International Fund also own the plant.