By Larry Claasen
Cape Town-based Independent Power Producer (IPP) Red Rocket plans to use the $160-million it got last year to become a major player in the local energy market.
The cash injection will see the group investing not only in the South African government’s Independent Power Producer Procurement Programme (REIPPP) but also in Commercial & Industrial (C&I) projects, says Red Rocket CEO Matteo Brambilla.
“The $160-million (about R3-billion) cash injection is used for equity in new projects coming online in both REIPPPP and large C&I projects.”
Brambilla did not specify which projects the group has lined up but indicated that it plans to set them up quickly.
“These funds have aided our project development process, bringing us closer to reaching 5GW of projects in development by 2025.”
Brambilla says the group has ambitious goals and wants to maintain its growth momentum.
“We are a fast-growing company getting closer to being a leading Independent Power Producer in South Africa. We are very proud of this fact, especially since we are born and bred in Cape Town.”
So far, Red Rocket has started several energy projects covering a wind range of renewable energy sources, both in South Africa and abroad:
- Kruisvallei hydro project is located along the Ash River in the Free State. This hydroelectric plant will generate 24 GWh of electricity annually, catering to the power needs of around 1916 households;
- Roggeveld Wind is a wind energy facility near Laingsburg that will produce 613 GWh of power annually, powering nearly 50 000 homes;
- Kathu Solar is located in the Northern Cape and generates approximately 150 GWh of power per year;
- Tororo Solar North Limited is a special-purpose vehicle company that will operate a 10 MW photovoltaic plant in Uganda.
The $160-million investment it got in September 2023 was from Bill Kilgore Investments, a management shareholders vehicle, and a consortium of international clean energy investors that includes the Evolution II and III Funds managed by Inspired Evolution, STOA – an impact energy and infrastructure fund dedicated to emerging markets, and FMO, the Dutch entrepreneurial development bank.
“We are proud to be part of Red Rocket project alongside Inspired Evolution and FMO. We are convinced that renewable energy is key for a sustainable growth and future and will be highly beneficial to South Africa. My recent visit to the Red Rocket mothership has reinforced my confidence in this dynamic and enthusiastic team,” said STOA CEO, Marie-Laure Mazaud.
On the topic of future funding, Brambilla said: “Further funding initiatives will be explored in line with our business growth strategy.”
