Norfund and UK Climate Investments (UKCI) have invested in a joint venture to develop 700 MW of wind farms in South Africa. Norfund, the Norwegian investment firm, announced a partnership with UKCI, a $268 million-plus investment fund established by the UK government’s Department for Business, Energy and Industrial Strategy and the Green Investment Group to promote South Africa’s energy transformation.
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The Norfund and UKCI wind farm entails funding a joint venture between H1 Holdings and Pele Green Energy, an independent power producer (IPP). In the following years, these two significant stakeholders in South Africa’s energy revolution will have a 40% share in installing 700 MW of wind power. Norfund and Ukci funding is thus required to complete this project with the Italian IPP Enel Green Power. One of Norfund’s largest equity investments in South Africa’s renewable energy sector, valued at over $100 million.
Aiding South Africa’s Energy Shift
South Africa is undergoing an energy shift, and the Norfund and UKCI wind farm is evidence of this. Over the next five years, the rainbow nation is scheduled to receive $8.5 billion in assistance to help it transition away from coal. Facilities like those proposed by Enel Green Power, H1 Holdings, and Pele Green Energy will replace extractive energy. Norfund’s Vice President of Clean Energy, Bjrnar Baugerud, emphasized that expanding access to inexpensive renewable energy is an effective method to help generate employment and improve people’s lives. Increasing the percentage of renewable energy in South Africa’s electrical mix will also help to mitigate climate catastrophe. He went on to say that the organization is certain that this new alliance will be a powerful weapon in achieving our shared objectives.
Enel Green Power will own a 60% share in the project, which will create 700 MW of wind energy. The wind farms in South Africa will be developed under the Renewable Energy Independent Power Producer Procurement’s 5th bidding window (REIPPP). Through 25 power plants, 2,583 MW of renewable energy will be produced in this phase.
