The Public Investment Corporation (PIC) announced that it has recently concluded transactions for two renewable energy projects to the value of R22bn. The transactions are for the construction of two Concentrated Solar Power (CSP) stations, Ilangalethu (Ilanga) and Xina, in which the PIC has taken direct 20% equity stake, respectively. In addition to equity stake in Ilangalethu, the PIC will also provide R600m of debt to the project.
Based in the Northern Cape, the two power stations are expected to contribute a combined 200 megawatts to the national electricity grid, thereby providing the much needed relief.
PIC Chief Executive Officer, Dr Daniel Matjila, said, “Electricity remains an important contributor to South Africa’s economic development and, for this reason; we believe that investment in the renewable energy sector is critical. Investment in renewable energy is just one of the many ways by which we contribute to the national electricity grid. Indirectly, we purchase bonds, which are used to fund electricity projects.”
The conclusion of Xina and Ilangalethu transactions brings a total number of nine renewable energy transactions concluded by the PIC, which are expected to contribute 554MW once completed.
Investment in renewable energy projects forms part of the PIC’s developmental investment (DI) mandate. The DI mandate hangs on six pillars, one of which is investment in projects that are focused on environmentally friendly and sustainable projects. Renewable energy and clean technology, as well as construction of green buildings are key focus areas of this pillar.