- Norwegian listed renewable energy company, Magnora ASA, has acquired 92% of the renewable project development company African Green Ventures (AGV).
- The remaining 8% will be owned by AGV management.
- AGV is a project developer within large scale solar PV and onshore wind and has a good track record of sourcing renewable projects on behalf of various clients.
AGV holds project rights of more than 800 MW wind and solar PV projects after recently signing land lease option agreements in prime locations to be added to Magnora’s existing portfolio of 850 MW.
The acquisition will bring Magnora’s South African portfolio to a total of approximately 1.7 GW. AGV’s goal is to develop a portfolio of more than 2 GW solar and wind projects in South Africa while increasing cost efficiency and de-risking through economies of scale.
Operational synergies are expected as AGV already has been responsible for some of Magnora’s development activities in South Africa. As part of the transaction, Peter Nygren, EVP Strategies in Magnora, will step down from his current position and become an active owner in AGV, pursuing the opportunities in South Africa. Nygren will continue in Magnora’s team of corporate advisors and in his role as active owner in Helios Nordic Energy AB.
“We see great opportunities in South Africa, both in the short- and long term, and we expect increased power consumption due to economic development and green electrification. AGV’s approach to sourcing attractive projects is complementary to our methods and capabilities, and we look forward to having them as a part of the Magnora team,” says Erik Sneve, CEO of Magnora.
Currently, more than 80% of the energy production in South Africa is from coal fueled power plants and more than 10,000 MW of the domestic coal energy capacity is expected to be decommissioned by 2030, increasing to 35,000 MW by 2050.
This makes South Africa an attractive region for solar and wind development together with storage technologies. According to the Integrated Resource Plan from 2019, new capacity to be added between 2019 and 2030 includes 14,400 MW onshore wind and 6,000 MW solar PV, which might increase further to replace decommissioned coal power plants.
“Magnora is increasing and sharpening its focus on South Africa in light of the current positive developments in the country, and we are confident that the African Green Ventures organization will prove to be key to develop Magnora South Africa in the coming years,” says Torstein Sanness, Executive Chairman of Magnora.
Author: Bryan Groenendaal
