AIIM buys majority stakes in 800 MW of S African renewable energy projects

Private equity fund manager African Infrastructure Investment Managers (AIIM) has acquired majority stakes in a portfolio of nine wind and solar projects in South Africa with a combined value of 800 MW.

The nine plants are scheduled for commissioning at end-2020, AIIM said on Monday. The company has purchased a 50.01% interest in each project through its unit IDEAS Managed Fund. The list of projects included in the particular portfolio can be seen in the table.

“We are looking at almost ZAR 9 billion (USD 617m/EUR 538m) in total capital expenditure across these power projects, where IDEAS is the main sponsor,” said Sean Friend, investment director at AIIM. He added that the projects will not only provide “essential clean energy to the grid,” but will also spur economic growth by opening jobs in construction and follow-up operations and maintenance.

The projects were awarded under Round 4 of South Africa's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

Once fully operational, the renewable energy facilities are expected to generate about 2,425 GWh of electricity annually and mitigate around 2.4 million tonnes of carbon dioxide (CO2) emissions. The output of the plants is seen to meet the demand of more than 522,000 medium-sized households in South Africa.

(ZAR 10 = USD 0.0686/EUR 0.598)

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