- Norfund, the Norwegian investment fund for developing countries, and CDC Group, the UK’s development finance institution (DFI) today announced a commitment to invest R600 million in H1 Capital (Norfund 360 million and CDC 240 million) – a South-African black-owned and managed renewables investment and development company.
- Under South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window, H1 is co-invested in 21 projects with four independnent Power Producers namely: Globeleq Mainstream, Redrocket, EDF and Scatec.
The transaction represents a joint vision by the DFIs to mobilise climate finance to Africa and back clean infrastructure projects across the continent. The investment from Norfund and CDC, which will soon be renamed British International Investment (BII), will help to improve access to clean and affordable energy in South Africa. The increase in clean energy supply will provide consistent power to cities, villages, townships, businesses and farms, thereby increasing productivity and encouraging economic growth.
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This investment will support the country’s clean energy goals, as it will enable H1 Capital to fund a pipeline of over 2.4 GW of new wind and solar projects, generating approximately 6,400 GWh per year. This will contribute to avoiding annual emissions of 6,2 million tons of CO2 , and help to accelerate South Africa’s transition to clean energy.
H1 Holdings has a 16% share in Revego, Investec’s majority black owned renewable energy investment fund.
Revego recently receive £15 million (approximately ZAR 315 million) of follow-on funding from the UK Climate Investments (UKCI). UKCI is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy. Read more
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H1 Capital is a development partner of choice, owing to the company’s expertise on several renewable power projects and its deep commitment to energy sustainability. As a Broad-based Black Economic Empowerment (BBEE) company, H1 Capital’s inclusive approach provides clean energy solutions that enhances the participation of the wider communities in the economy, helping to transform the lives and livelihoods of marginalised groups in South Africa.
Reyburn Hendricks, Chief Executive Officer of H1 Capital, commented: “H1 is excited to be able to partner with Norfund and CDC to achieve our purpose of improving the quality of lives. South Africa needs access to long-term, patient capital to develop the large-scale energy projects required for reliable, clean power supply and economic development. H1 hopes that the partnership fostered with Norfund and CDC can be replicated with other players and projects in Sub-Saharan Africa”.
Author: Bryan Groenendaal
