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R220 million invested in Grootfontein solar project

Through the Prescient Investment Management's Clean Energy Fund, the financial management and investment company has concluded a deal with H1 Holdings to provide R220 million to fund the latter's investment in 3 Grootfontein 75MW solar PV farms located in Touws River in the Western Cape.

The projects were granted as part of the fifth bidding round of the Department of Mineral Resources‘ Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) to provide renewable energy as part of a 20-year power purchase agreement. The projects are anticipated to reduce annual CO2 emissions by approximately 630 000 tons and power approximately 100 000 homes in the surrounding communities upon completion.

Luzuko Nomjana, the Prescient portfolio manager and credit structuring specialist, SAID that H1 Holdings’ primary focus was on projects that drove a high ESG impact. “H1 Holdings’ goals align with our focus with respect to giving investors access to ESG-centric products and supporting renewable energy generation that will alleviate the energy crisis weighing heavily on South Africa’s economy,” Nomjana said.

Nomjana said that solar farms would contribute to the country's development by creating employment for previously disadvantaged people in surrounding communities and uplifting them through other socio-economic initiatives. The development of the solar farms is supposed to take between 12 and 18 months. Since its inception in September 2015, the Prescient Clean Energy Fund has invested in 31 renewable energy projects, totaling R3.7 billion.

It has created 1 343 jobs and contributed to the addition of 2.3GW of clean energy to the national grid. Nomjana said the fund was a vehicle for investors to access projects that were not readily available to them and provided them with long-term, stable real returns. “In addition to attractive real returns, the fund offers investors an opportunity to make a pro-active, significant, and lasting contribution to developing the South African economy, ” Nomjana said.

The 100% black-owned infrastructure investment and development company H1 Holding holds a 46.5% equity participation in the Grootfontein solar PV farm projects. The project is also owned by Scatec Solar, with a 51% stake, and Community Trust, with a 2.5% stake.

Source: www.iol.co.za

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R220 million invested in Grootfontein solar project

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