UK Climate Investments has agreed to invest around £14m to support development of 250MW of wind projects in South Africa.
The investment programme will fund developer H1 Holdings, a majority black-owned and managed clean energy proponent, to build the 140MW Kangnas wind farm in Northern Cape province and 110MW Perdekraal East wind farm in Western Cape.
The financing will be provided through an “innovative funding” mechanism developed by UKCI in close consultation with H1 Holdings and designed to support Black Economic Empowerment entities, said the UK outfit.
The projects will source 40 per cent of construction, operations and maintenance staff from local communities.
Commercial operations are due by the end of 2020.
A 4MW Kruisvallei hydro project in Free State province will also benefit from investment.
UKCI managing director Richard Abel said: “Over 90% of electricity generation capacity in South Africa currently relies on fossil fuels. Our partnership with H1 Holdings supports the country’s transition to a new energy mix – promoting cleaner growth in southern Africa’s largest economy whilst stimulating economic development in rural areas and supporting increased BEE participation in the renewables sector.”
H1 chief executive Reyburn Hendricks added: “H1 Holdings is proud to be working with UK Climate Investments on promoting access to cleaner electricity in southern Africa. Energy is a highly capital-intensive industry and access to finance is a challenge across the industry for all players. Our partnership will help to address the need for new generation capacity in South Africa.”