- African Clean Energy Developments (ACED) and Energy Infrastructure Management Services (EIMS) has merged to form Anthem.
- Anthem has financial backing from the African Infrastructure Investment Managers (AIIM) IDEAS Fund and founding investors, Mahlako Financial Services managed Mahlako Energy Fund and Norfund.
Anthem develops, finances, builds, owns, and operates one of the country’s most significant renewable energy portfolios. This spans 24 wind and solar PV projects across 5 provinces in South Africa, plus a hydroelectric and a soon-to-close solar PV project in Eswatini. Together, this represents over 2.7GW of secured capacity, an 11GW greenfield pipeline, and an estimated 15% market share in South Africa’s renewables IPP market.
Norway’s Climate Investment Fund is investing US$ 69 million (NOK 685 million) directly in Anthem, while KLP Norfund Invest (KNI) is investing US$ 17.1 million (NOK 170 million). KNI is the joint investment company of KLP and Norfund, owned 51% by Norfund and 49% by KLP.
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“Anthem will be a key investment in The Climate Investment Fund’s efforts to support the transition to renewable energy in South Africa, making a significant contribution in terms of avoided emissions, while also ensuring the country has reliable access to the energy needed for growth out of poverty,” says Bjørnar Baugerud, Head of The Climate Investment Fund at Norfund.
“Access to capital on competitive terms is crucial for us to realise our ambitious plans for renewable energy development in South Africa, and we are therefore very pleased to have Norfund and The Climate Investment Fund on board,” says James Cumming, the CEO of Anthem.
For renewable energy, almost the entire cost comes at the time of investment. This means that high capital costs, due to higher risk in developing countries, can hinder the transition from coal to renewables, which require less investment but are more expensive to operate.
Standard Chartered Bank was Norfund’s financial advisor in the deal.
Author: Bryan Groenendaal
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