A responsAbility-managed energy holding company has bought a 26% interest in South African hydro development company Renewable Energy Holdings (Pty) Lty (REH).
REH is the majority owner and operator of the 3MW Sol Plaatje, 4MW Merino and 4MW Stortemelk hydropower plants in South Africa. It is also developing a five-project, 70MW portfolio of run-of-river hydropower plants in Zambia under contract with New Africa Power (Mauritius).
“REH has established itself in Southern Africa as a hydropower focused IPP, and is actively expanding its development activities across the region. The investment by responsAbility in REH follows on a clear strategic fit between the two companies,” commented Anton-Louis Olivier, MD of REH.
Speaking on behalf of responsAbility, Joseph Nganga, Co-Head of Energy Equity Investments, said: “We are pleased to team up with this well-established partner in the field of renewable energy generation in Sub-Saharan Africa. This cooperation will allow us to scale up our hydropower development activities at a higher pace, delivering attractive returns to our investors while at the same time ensuring that we add much needed energy capacity on the continent and contribute to the United Nations’ Sustainable Development Goals, particularly in the area of climate action and creating essential infrastructure.”
Norton Rose Fulbright, Werksmans Attorneys and Rand Merchant Bank advised on the transaction.