Revego Africa Energy has acquired stakes in a number of wind assets from Metier and Lereko, who jointly manage the Lereko Metier Sustainable Capital Fund.

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

Reyburn Hendricks, Revego CEO, said: “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 characterized by high winds and arid conditions.”

“Local communities have a direct shareholding in the assets, while the wind farms also employ and train people from the community, helping to build a skill set in what is likely to be a growth industry in the future,” he added.

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.

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. 

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. 

“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, Principal in Metier’s Sustainable Capital practice.  

Revego’s portfolio now consists of three wind and one solar asset and has secured a wind and a solar asset, all of which have 20-year PPAs with Eskom.

“We are pleased to have rapidly built up scale within Revego in some of South Africa’s most important renewable assets and to be able to provide our investors with the basis to meet their sustainability and return goals,” Hendricks said.