Media And News

Press Release: Metier is happy to announce the sale of 360MW of Mainstream wind assets to Revego Africa Energy Limited

Revego Africa Energy Limited (Revego), South Africa’s only yieldco geared towards the renewable energy sector through its investment in the Revego Africa Energy Fund, has acquired stakes in a number of leading wind assets, all of which are helping to build South Africa’s clean energy future.

The acquisitions include the Mainstream wind assets, Loeriesfontein 2 Wind Farm, Khobab Wind Farm and Noupoort Wind Farm, situated in the Northern Cape.

Loeriesfontein and Khobab (completed in December 2017) each have capacity of 140 MW and Noupoort (completed July 2016) has a capacity of 80 MW. The assets were built as part of Bid Window 3 of the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP), led by sponsors Mainstream Renewables SA, a leading developer of wind and solar PV projects.

Eskom is the sole off-taker for all power produced by the three wind farms through a 20-year Power Purchase Agreement (PPA) as part of the REIPPP. The PPA is backed by the Government Support Framework Agreement (GSFA), whereby the South African government provides support to Eskom in an event of default.

Revego has purchased the wind assets from Metier, one of Africa’s leading private equity fund managers, and Lereko, who jointly manage the Lereko Metier Sustainable Capital fund. The acquisition fits in with Revego’s strategy of taking stakes in operational renewable energy assets in sub-Saharan Africa that have a track record of generating stable cash flows and that deliver an above-inflation dividend yield over an extended period.

Metier’s Sustainable Capital practice targets investments in energy efficiency, renewables, water and waste management businesses, as well as projects supporting Africa’s development objectives and environmental commitments.

“We are pleased to have played a part in three of the largest wind assets in South Africa and their contribution to building a thriving renewable energy sector in the country” said John Hannig a principal in Metier’s Sustainable Capital practice.

Revego CEO Reyburn Hendricks says that collectively, the three wind farms generate clean renewable energy, supplying electricity to power up to 310,000 South African households, positively impacting the country’s economy and its people. “As a renewable energy source, wind power generates zero carbon emissions and uses only a minimal amount of water, unlike traditional power stations. This makes it the perfect energy source for a region of the country that is characterised by high winds and arid conditions,” he explains.