Cape Town - In efforts to produce cleaner energy and strengthen renewable power development, H1 Holdings, a Cape Town black-owned and managed renewables company, is set to benefit from a first of it’s kind investment deal between the CDC Group, the UK's development finance institution, and Norfund, the Norwegian investment fund for developing countries.
Representatives from these development finance institutions (DFIs) and the Norwegian Minister of International Development Anne Tvinnereim gathered in Cape Town on Thursday to officially commit to investing R600 million in the investment and development company, H1 Capital, for their projects in renewable power development in SA.
“We share a common ambition to mobilise climate finance to Africa and to support South Africa’s ambitious targets in renewable energy. This deal is a milestone as this will be the first investment of the Norwegian Climate Investment Fund that was announced at COP26 last year.
“This is also CDC’s first investment in a broad-based black economic empowerment company in SA,” Norfund executive vice-president of strategy and communication Ylva Lindberg said.
This investment was set to support the country's clean energy goals, as it would enable H1 Capital to fund a pipeline of over 2.4 GW of new wind and solar projects that would generate approximately 6 400 GWh per year.
“This will contribute to avoiding annual emissions of 6,2 million tons of CO2 annually and help to accelerate South Africa’s transition to clean energy,” said Norfund Clean Energy vice-president Bjørnar Baugerud.
Tvinnereim said key aspects of this project for the Norwegian government was that it would enable access to clean energy and facilitate the transition from fossil fuels while fostering poverty reduction and job creation in South Africa.
The inclusive approach by BBEE company H1 Capital was a major factor in their selection as the DFIs development partner of choice, as well as their expertise on several renewable power projects and deep commitment to energy sustainability.
“South Africa needs access to long-term, patient capital to develop the large-scale energy projects required for reliable, clean power supply and economic development. H1 hopes that the partnership fostered with Norfund and CDC can be replicated with other players and projects in sub-Saharan Africa,” H1 Capital CEO Reyburn Hendricks said.
CDC head of South Africa and coverage director Thithi Kuhlase-Maseko said this investment also signified the importance of SA for the CDC and how Britain was committed to help accelerate economic productivity and inclusive growth for Africa’s green recovery.