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 Connecting African Growth with Global Capital Absa Corporate and Investment Banking supported Ecobank Transnational Inc.’s (ETI) landmark $125 million Eurobond Tap - the first African financial institution issuance in international markets following the tariff-related US market disruption. Read more DEALS Driving Impact Through Purposeful Capital At Absa Corporate and Investment Banking, we believe that sustainable investment is key to long-term economic resilience. Our support of LeapFrog Investments reflects our belief in creating measurable impact - across ESG, economic, and community outcomes, by backing businesses that are accelerating growth across emerging markets. Read more DEALS Charging Progress in Green Energy The R3.8 billion wind energy transaction will finance the design, development, construction, operation, and maintenance of a 150MW wind project that will generate clean energy for Discovery Green - advancing the just energy transition we are proud to support. Read more
