Prescient Investment Management announced this week that it has concluded a deal with H1 Holdings to provide R220 million to fund the latter’s investment in three Grootfontein 75MW (each) solar PV farms located in Touws River in the Western Cape.
This was done through Prescient’s Clean Energy Fund.
The projects were awarded as part of the fifth bidding round of the Department of Mineral Resources’ Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) to deliver much-needed renewable energy as part of a 20-year power purchase agreement.
On completion, the projects are expected to power some 100 000 households daily in the surrounding communities and reduce approximately 630 000 tonnes of CO2 emissions annually.
Prescient portfolio manager and credit structuring specialist, Luzuko Nomjana, said H1 Holdings’ primary focus was on projects that drove high ESG impact, a philosophy shared by Prescient.
“H1 Holdings’ goals align with our focus with respect to giving investors access to ESG-centric products and supporting renewable energy generation that will alleviate the energy crisis weighing heavily on South Africa’s economy,” Nomjana said.
“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.”
Construction of the solar farms was expected to take 12 to 18 months and they are anticipated to go live in 2025.
The Prescient Clean Energy Fund which was launched in September 2015, was said to have invested across 31 renewable energy projects and has grown to R3.7 billion. It has contributed towards an addition of 2.3GW of clean energy to the national grid while creating 1 343 jobs.
H1 Holdings is a 100% black-owned infrastructure investment and development company, and it 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 Community Trust, a 2.5% holding.
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