An Eastern Cape renewable energy project has received a R500m windfall from a Vantage GreenX debt fund.
The 120MW Golden Valley wind project, situated outside Cookhouse, is one of six solar and wind energy projects across the country to benefit from the GreenX Note II fund.
Vantage GreenX Fund Managers announced this week that the fund would be providing support of R2.05bn to the projects, which form part of the fourth round of the South African Renewable Energy Independent Power Producer procurement programme.
Golden Valley is a project of Biotherm Energy, whose 86MW Konkoonsies II and 45MW Aggenys solar panel projects, both in the Northern Cape, and the 32MW Excelsior wind project in the Western Cape, will also benefit from the funding initiative.
Two other projects – the 75MW Droogfontein II solar panel project in the Northern Cape and the 75MW Zeerust solar panel project in North West – were also selected.
Vantage GreenX managing director Alastair Campbell said: “Each of these projects has strong, experienced sponsors and solid project fundamentals. Together they represent a geographically diverse portfolio of assets.
“Despite the difficulties experienced by stakeholders in the industry over the last two years, we hope that the conclusion of this round of projects represents a watershed moment for the South African renewable energy industry, and provides forward momentum to the sustainability of the domestic energy sector as a whole.”
GreenX Note II is Vantage GreenX’s second generation renewable energy debt fund, with the Note I supplying R2.1bn to eight projects in the past, including the Cookhouse and Amakhala wind farms and the Dreunberg solar panel project in the Eastern Cape. The Note II fund has a mandate to provide senior debt linked to inflation to sustainable projects run by the department of energy.
Vantage Capital senior associate Ridhaa Ahmed said: “The project funding comes from a combination of equity and senior debt.”
Ahmed said the funds came from pension and provident fund investors, who benefited from the long-term debt, which has to be paid off over 17 to 20 years.
BioTherm chief executive Jasandra Nyker welcomed the support to the four projects.
“Vantage not only provides competitive funding, but it brings with it a wealth of renewable energy funding experience and deep understanding of risk management.”