Globeleq Increases Stake in South African Renewables
LONDON, 30 November 2017: Globeleq, a leading developer, owner and operator of electricity generation projects in Africa, has increased its shareholding in the Jeffreys Bay Wind Farm, De Aar Solar and Droogfontein Solar power projects in South Africa, by acquiring Mainstream Renewable Power’s minority shareholdings in the three plants. Globeleq will fund the acquisition through a mix of internal funds and available credit facilities.
“This is a natural progression for Globeleq in South Africa and reinforces our ongoing commitment to powering Africa’s growth.” Paul Hanrahan, Chief Executive Officer for Globeleq said: “Globeleq is one of the few IPPs on the continent who has the experience and capabilities to develop, manage and operate a range of generating technologies including gas and renewables, which are vital components in the future energy mix on the continent.” He continued: “As a strategic and long-term investor, Globeleq is also an ideal partner to other developers who may prefer to recycle capital and exit their projects.”
Through its subsidiary, Globeleq South Africa Management Services Ltd, the company has been operating the renewable plants since 2014 when they achieved commercial operation in Round 1 of the Government of South Africa’s Renewable Energy IPP Procurement Program. Mainstream Renewable Power was the initial developer and managed construction of the three plants.
In addition to management and operation of the power plants, Globeleq supports unique scholarship and internship programs to develop skills and contribute to the renewable energy industry on the African continent. During the first three years of operations, the projects have contributed more than R60 million (approx. US$4.17 million) to the targeted socio-economic and enterprise development programs, supporting over 90,000 households across 115 beneficiary programs.