Page 10 - AfrElec Week 09 2023

AfrElec INVESTMENT AfrElec

Swiss impact investor responsAbility

commits $10mn for South Africa solar

energy projects

SOUTH AFRICA A CLIMATE fund managed by Zurich- South Africa has recently relaxed its stringent
based impact investor responsAbility Invest- permit rules on solar installations generating
ments AG has allocated $10mn of secured over 1 megawatt (MW) to now only requiring
debt for solar energy projects in South licences for projects over 100MW. This resulted
Africa. in the removal of lengthy administrative proce-
The long-term investment into Jaguar New dures and has allowed the C&l solar market to
Energy (JNE), a Cape Town-based sustainable flourish, says the company.
energy solution provider, is split into a senior “We are delighted to have responsAbility Individual solar
and junior debt facility and will finance a port- as a debt provider to JNE for the expansion
folio of solar installations to commercial and of a portfolio of solar energy projects across energy projects
industrial (C&I) off-takers. South Africa,” said Paulo Bello, MD of Forest- developed by
The projects will be implemented by New Effect Fund (shareholder of JNE). “The funding
Southern Energy (NSE), a South African engi- secured will provide needed support to build JNE will be
neering, procurement and construction (EPC) the over 20MW of renewable energy capacity to
partner company of JNE, responsAbility said in various off-takers.” able to secure
a press release on February 21. JNE is equity funded by a consortium of
Up to 85% of South Africa’s energy is cur- equity investors: Jaguar Fruits (a large Dutch inexpensive and
rently sourced from coal. Eskom, the national fruits company with clients in SA), Forrest Effect more reliable
grid operator, supplies 95% of the country’s Fund (FEF), New Southern Energy (Solar EPC
electricity from its fleet of poorly maintained company in South Africa) and Supply Chain power needed
ageing plants. The utility is regularly forced to Impact Fund (SCIF).
cut power for hours at a time to prevent the grid “We are very pleased to announce our col- for business
from collapsing. laboration with JNE and scaling the company’s
Individual solar energy projects developed business in providing cost-effective and reli- operations.
by JNE will be able to secure inexpensive and able source of power to companies in South
more reliable power needed for business oper- Africa,” said Peter Page, investment officer at
ations. Following the introduction of new responsAbility.
regulations, JNE customers will be able to “The transaction further deepens responsA-
generate about 30% of the energy they require bility’s commitment and expertise in providing
from their own solar resources, according to climate finance to renewable energy projects
responsAbility. across South Africa.”™

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