Page 18 - Energize August 2021

NEWS

Leading independent South African renewable energy platform launched

African Rainbow Energy and Power (AREP) and Absa has launched African Rainbow Energy as an
African-led, world-class, renewable energy investment platform.

REP will make an initial investment track record for competence and delivery,
of assets covering wind, solar its unique network of entrepreneurs and its
Aphotovoltaic and biomass projects partnership with entities that have a history
with an installed capacity of more than 700 of empowering women, youth, rural and
MW of renewable energy. urban communities.”
Absa will make an initial investment African Rainbow Energy will invest in
of R500 million in cash and transfer R5 renewable technologies including solar, wind,
billion of its existing renewable energy and battery energy storage solutions. It has
assets to African Rainbow Energy. This will already secured a deep investment pipeline
result in African Rainbow Energy having and has partnered on a number of bids into
approximately R6,5 billion of gross assets, Round 5 of South Africa’s highly successful
covering 31 renewable assets, making REIPPPP.
it one of the largest and most diverse African Rainbow Energy will also invest
independently owned energy businesses in in the private power sector and is working
South Africa. with several companies on bespoke energy
The establishment of African Rainbow solutions.
Energy expands the pool of funding available “Our participation in African Rainbow Dr Patrice Motsepe
for renewable energy developments in Energy underscores Absa’s commitment to
South Africa, at a time when the country is support renewable energy development founded by Dr Patrice Motsepe and is the
accelerating its plans to expand and diversify and enhance the green economy, as part only African company that is a partner in the
its energy base through the Renewable of our sustainability agenda,” said Jason Breakthrough Energy Ventures which was
Energy Independent Power Producer Quinn, Absa interim Group Chief Executive. started by Bill Gates and includes several
Procurement Programme (REIPPPP). The “Renewables are an important part of globally respected leaders including Jeff
private sector is simultaneously expanding its Absa’s sustainability strategy, and we target Bezos, Richard Branson, Jack Ma, Mukesh
energy supply. This is an important step for the financing or arranging of more than Ambani and others. Breakthrough Energy
the South African economy, which aims to R100 billion for environment, social and Ventures is an investor-led fund that is
source reliable and cost-effective renewable governance-related projects by 2025.” building new, cutting-edge companies that
energy to drive growth and employment. Absa not only brings capital to the aim to provide energy with zero emissions.
This collaboration supports AREP’s initiative, but also expertise and experience “Our investment in African Rainbow
objectives to utilise modern and renewable in renewable energy financing. It is at the Energy creates an opportunity for Absa
energy technologies to provide affordable forefront of financing renewable energy to increase our role in the much-needed
electricity in South Africa and on the African in South Africa, having funded 33 projects expansion of the renewable energy sector,”
continent. Absa is uniquely positioned to date, representing approximately 3 GW, said Quinn.
given its key role in the African continent’s which amounts to 46% of the total projects “The fund will provide investors with
economy and its commitment to the closed to date in South Africa. Absa’s exposure to utility-scale, commercial and
development of renewable energy and the renewable energy loans amounted to R20 industrial sector clean-energy investments,
green economy. Absa is a leading funder billion as at 31 December 2020. building a platform of scale in South Africa,
into the renewable energy market and this Dr Patrice Motsepe said “approximately and will seek selected, bankable projects in
transaction expands its participation in this 15 years ago we set out to create a world Africa,” said Dames.
important sector. class African energy company that would The effective date of the fund is subject
“Renewables have been one of the provide investors with predictable and to the fulfillment of certain conditions
most successful asset classes globally, growing returns from a clean energy portfolio precedent, which are expected to be
offering a unique mix of attractive long- of environmentally responsible assets. This concluded in the fourth quarter of 2021.
term, inflation-linked returns and growth energy company would also contribute to
providing significant scope to deploy the growth of the South African economy About AREP
further funds. African Rainbow Energy is and the economies on the rest of the AREP is an African energy company focused
engaging with other investors to increase African continent, while improving the living on clean energy solutions including
its equity base and fund further growth conditions of the poor, unemployed and renewables, hydro, gas and complementary
with the aim of listing on the JSE in future,” marginalised. Absa is a like-minded partner transmission investments. One of AREP’s
said Brian Dames, African Rainbow Energy which shares our vision of building this main objectives is to provide affordable
Chief Executive Officer. “African Rainbow initiative at scale in Africa.” energy solutions in South Africa and on the
Energy is uniquely positioned to access AREP’s holding company, Ubuntu-Botho African continent through the utilisation of
these investment opportunities given its Energy Holdings Proprietary Limited was modern and renewable energy technologies.

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