July 18 (Renewables Now) - Independent power producer (IPP) Globeleq today announced it has agreed to take a majority interest in a 178-MW renewables portfolio in South Africa from an affiliate of Brookfield Asset Management Inc (TSE:BAM.A).
The parties have reached a definitive agreement, calling for Globeleq to buy Canada-based Brookfield’s entire shareholding in six renewable energy plants. It will also give Globeleq an ownership in Brookfield’s South African asset management company.
The assets included in the 178-MW portfolio comprise five solar parks -- the 11-MW Aries, 66-MW Boshoff, 11-MW Konkoonsies, 31-MW Soutpan and 33-MW Witkop -- and the 27-MW Klipheuwel wind farm. All projects were secured under rounds 1 and 2 of South Africa’s renewable energy programme and have 20-year power purchase agreements (PPAs) with local utility Eskom.
The six plants have been generating electricity since 2014.
The transaction, subject to certain closing conditions, is in line with Globeleq’s expansion plans for Africa. The IPP noted that in South Africa alone, it has 238 MW of wind and solar assets, either owned or under operations and management.