- UKCI and Norfund to finance SA’s largest renewable energy equity deal
United Kingdom Climate Investment (UKCI) and Norfund have announced that they will fund what will become one of South Africa’s largest renewable energy equity deals valued at around $100 million.
The financing is a joint venture between H1 Holdings and Pele Green Energy for a 40 per cent equity participation in a 700MW portfolio of onshore wind farms. Both partners will invest alongside Enel Green Power who will retain a 60 per cent ownership interest.
UKCI and Norfund’s commitment is aligned with the UN’s Sustainable Development Goal number seven to increase access to clean, reliable and affordable energy, which is a critical enabler of social and economic development. Despite having some of the world’s best renewable energy sources, almost 600 million people in sub-Saharan Africa live without access to electricity. While this number has been steadily declining over recent years, the COVID-19 pandemic has halted progress; 13 million more people lacked access to electricity in 2020 compared to the previous year.
In addition to tackling this challenge, UKCI and Norfund’s investment will also aim to accelerate South Africa’s transition to a low carbon economy, with a strong emphasis on enhancing Broad-based Black Economic Empowerment (B-BBEE).