- Distributed Power Africa (DPA) has announced a planned USD 20 million solar investment from Royal Bafokeng Holdings (RBH) in a newly formed company.
- The new asset company will be specifically set up to own and install 175MW of solar energy across selected DPA markets in the next four years.
- RBH is a long-term African community investment holding company and intends to take a 60% equity stake in DPA Africa Asset-Co alongside Econet Energy Limited.
According to a statement released by the companies, the investment will provide funding to boost DPA commercial and industrial solar projects in South Africa, Kenya, Democratic Republic of the Congo, and Zambia.
Through this facility, DPA expects to unlock more distributed-energy solutions based on power lease agreements for photovoltaic (PV) panels and energy storage systems to customers in this sector. For RBH, this project is another step in their journey towards portfolio diversification and provides a long-term investment opportunity in making affordable, efficient energy widely accessible to businesses so that they can, in turn, empower communities. The partnership comes at an opportune time when the South African Government is encouraging investment in renewable energy and will accelerate the much-needed 6.8GW energy capacity, as outlined in the Integrated Resource Plan of 2019.
According to Norman Moyo, CEO of DPA Africa, the company has sought ways to ease the burden of deploying solar by ensuring its customers engage in a Capex-free model where they sign power lease agreements of up to 15 years. “We are excited to be backed by a like-minded African community investor RBH, in unlocking energy by reducing the burden of upfront investment for businesses. We believe energy is a fundamental pillar in supporting Africa’s economic development. This opportunity is an important step towards our vision of powering Africa for a better and brighter future”, he added.
Author: Bryan Groenendaal