DEALS Enabling the Just Energy Transition through captive power generation Absa | Corporate and Investment Banking > Insights and Events > Enabling the Just Energy Transition through captive power generation SHARE As a leading Pan-African bank, Absa continues to prioritise financing of renewable energy projects, helping our clients transition to a low-carbon economy and achieve their sustainability goals. Our innovative investments in the renewable sector demonstrate our commitment to shaping Africa’s growth and sustainability, and the development of its people. We are proud to have provided financing and corporate banking services to SOLA Group (‘SOLA’) for their third utility-scale renewable energy captive power project. Absa CIB acted as a Mandated Lead Arranger, Lender, Account Bank and Hedge Provider in the recently concluded renewable energy project to finance a 100MW Solar photovoltaic (PV) power plant located in the North-West Province, South Africa, at an estimated project cost of approximately R2.5bn. SOLA is a 100% South African vertically integrated Independent Power Producer (IPP) founded in 2008. They have developed and operated competitive renewable energy projects across various technologies including utility-scale and C&I solar PV, micro-grid and Battery Energy Storage Systems in South Africa. The power generated by the power plant will be supplied to African Rainbow Minerals Platinum (‘ARM Platinum’) under a 20-year power purchase agreement (‘PPA’). Once operational, the project will be able to supply electricity through a wheeling arrangement with Eskom to three of their mining sites located in Limpopo. This will account for about a third of the division’s energy requirement. This private offtake agreement will reduce electricity costs for ARM Platinum whilst simultaneously reducing its carbon footprint, resulting in economic, social and environmental gains. Contact: Xoli Nene Or Shaun Moodley https://cib.absa.africa/wp-content/uploads/2020/07/file_example_MP3_700KB.mp3 Related Articles DEALS Powering a sustainable future with Ferroglobe At Absa CIB, we believe that financing critical mineral supply is essential for advancing the Just Energy Transition. Our partnership with Ferroglobe supports the expansion of silicon metal production, which is key to semiconductor chips and solar panels, driving economic growth, job creation and Africa’s role in the renewable energy value chain. Read more DEALS Propelling South Africa’s Just Energy Transition Our landmark project financing contribution towards an R8.8 billion transaction with Red Rocket South Africa (Pty) Ltd reinforces our position as a market leader in renewable energy financing. Read more DEALS Building a more robust green energy landscape South Africa’s green energy sector is poised for significant transformation, with vast untapped investment potential. Our R1.45 billion deal with G7 Renewable Energies and Cennergi Holdings marks a monumental sustainability partnership, highlighting the critical role of finance as a catalyst for advancing renewable energy projects. Read more
