Home » News » An investment of R220 million has been made in the Grootfontein solar project.

An investment of R220 million has been made in the Grootfontein solar project.

Prescient Investment Management’s Clean Energy Fund has successfully entered into an agreement with H1 Holdings, providing R220 million to support the latter’s investment in three Grootfontein 75MW solar PV farms situated in Touws River, Western Cape. This significant investment has been directed towards the Grootfontein solar project.

As part of the Department of Mineral Resources’ Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), the projects were awarded during the fifth bidding round. These initiatives are dedicated to supplying renewable energy under a 20-year power purchase agreement.

No of households to benefit from Grootfontein solar project.

Grootfontein solar project will have the capacity to supply 100,000 households enough power.  It is also expected to result in a reduction of around 630,000 tons of annual CO2 emissions. 

According to Luzuko Nomjana, who serves as the Prescient portfolio manager and credit structuring specialist, H1 Holdings prioritizes projects that deliver a significant ESG impact. He further stated that their objectives align perfectly with Prescient’s focus on investment of R220 million towards Grootfontein solar project, offering investors access to ESG-centered products and contributing to renewable energy generation to address the energy crisis that has been burdening South Africa’s economy.

According to Nomjana, investment of R220 million towards Grootfontein solar project will play a crucial role in the country’s development by generating employment opportunities for individuals from previously disadvantaged backgrounds in the neighboring communities. Additionally, these solar farms aim to uplift these communities through various socio-economic initiatives.

The development of these solar farms is expected to take approximately 12 to 18 months. Since its inception in September 2015, the Prescient Clean Energy Fund has actively invested in 31 renewable energy projects, with a total investment of R3.7 billion. This has led to the creation of 1,343 jobs and the addition of 2.3GW of clean energy to the national grid.

According to Nomjana, the Prescient Clean Energy Fund serves as a platform for investors to access projects that were not readily available to them, providing them with stable and long-term real returns. He emphasized that the fund not only offers attractive real returns but also gives investors an opportunity to actively and significantly contribute to the development of the South African economy.

The Grootfontein solar PV farm projects have a 46.5% equity participation from H1 Holding, a 100% black-owned infrastructure investment and development company. Scatec Solar holds a 51% stake in the project, while the remaining 2.5% stake is owned by the Community Trust.

Also read South Africa’s Grootfontein Solar Projects Developer Achieves Financial Close







Leave a Comment