Investment company Prescient Investment Management's Clean Energy Fund will provide R220-million to fund renewable energy investment company H1 Holdings' investment in three Grootfontein solar photovoltaic (PV) farms, of 75 MW each, located in Touws River, in the Western Cape.
Construction of the solar farms is expected to take between 12 and 18 months and they are expected to go live in 2025.
The projects were awarded as part of the fifth round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) to deliver renewable energy as part of a 20-year power purchase agreement.
“These solar farms will also contribute to the country’s development by creating employment for previously disadvantaged people in the surrounding communities and uplifting them through other socio-economic initiatives,” said Prescient portfolio manager and credit structuring specialist Luzuko Nomjana.
“Further, H1 Holdings’ goals align with our focus to give investors access to environmental, social and governance-centric products and supporting renewable energy generation that will alleviate the energy crisis weighing heavily on South Africa’s economy,” he said.
H1 Holdings holds a 46.5% equity participation in the Grootfontein solar PV farm projects. Other shareholders in the project include Scatec Solar with a 51% stake, and a community trust with 2.5%.
Meanwhile, the Prescient Clean Energy Fund was launched in 2015, has invested across 31 renewable energy projects and has grown to R3.7-billion. It has contributed towards an addition of 2.3 GW of clean energy to the national grid while creating 1 343 jobs.
“The fund is a vehicle for investors to access projects that are not readily available to them and provides them with long-term, stable real returns. In addition to attractive real returns, the fund offers investors an opportunity to make a proactive, significant, and lasting contribution to developing the South African economy,” Nomjana said.