Magnora ASA (OSL:MGN) said on Tuesday that it is acquiring 92% of South African solar and onshore wind project developer African Green Ventures (AGV), thus increasing its own local renewables pipeline to about 1.7 GW from the current 850 MW.
The balance of 8% of AGV will be held by the target company's management.
AGV owns the rights for over 800 MW wind and solar photovoltaic (PV) projects, having recently signed a number of land lease option agreements. Magnora expects to book operational synergies from the deal as the South African company has already been in charge of some of the buyer's development activities in the country.
"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," Magnora CEO Erik Sneve said.
AGV is targeting a portfolio of more than 2 GW of solar and wind in South Africa, as the government's Integrated Resource Plan, launched in 2019, foresees the installation of 14.4 GW of onshore wind and 6 GW of solar PV by 2030. Those target capacities could be increased to compensate for the planned decommissioning of 10 GW of domestic coal-fuelled capacity by 2030 and 35 GW by 2050.
Meanwhile, the Oslo-listed renewable energy investment company is also divesting its shares in Nordic small and mid-sized wind park developer Vindr AS to its founders and will put an end to their joint development of Vindr Group.
Magnora bought 25% of Vindr in early 2020 and subsequently increased its ownership to 50%.
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