Africa’s first dedicated renewable energy yieldco is underway as UK Climate Investments has injected US$34 million into the in South Africa.
The yieldco will be managed by Revego Fund Managers, a South Africa-based company with significant expertise in the renewable energy sector. They are also fund managers for Revego Africa Energy Fund.
Revego aims to tackle the challenge of energy access and accelerate the deployment of new clean electricity generation capacity. Accordingly, Revego will acquire equity in operational renewable energy projects across South Africa. Thus, this will help developers unlock and recycle capital.
This innovative green finance vehicle established by UK Climate Investments involve Investec Bank Limited and Eskom Pension and Provident Fund.
Meanwhile, clean, reliable and affordable energy can be a critical enabler of poverty alleviation. It is also considered as able to propel sustainable economic development and the creation of communities more resilient to the impact of climate change.
The initial asset portfolio will contain stakes in six projects located across South Africa, with a combined installed capacity of 605MW. Revego intends to continue to grow its portfolio through the acquisition of new assets across the region.
Richard Abel, Managing Director of the UK Climate Investments, commented:
“UK Climate Investments has now been investing in sub-Saharan Africa for over three years. During that time, we’ve seen a significant growth in the appetite of investors looking to be part of this fast-developing region’s green transition.
“The establishment of Revego Africa Energy is another sign of the growing maturity of the market, and an indication that the future of green finance in sub-Saharan Africa will be bright.”
Richard Abel, Managing Director of the UK Climate Investments
Benefits of the Initiative
This programme demonstrates the transformative impact that international climate action can have through its support of economic growth and job creation in sub-Saharan Africa.
Adam Bye, Acting British High Commissioner to South Africa also remarked:
“I am delighted that this yieldco vehicle is being launched, backed by $34 million by UK Climate Investments… to support not just renewable energy development, but local ownership and involvement in the sector.
“The UK will continue to explore how government action can drive private investment in green innovation, creating new jobs, providing clean energy, securing energy provision and protecting participation in the rapidly accelerating global low carbon economy.”
Adam Bye, Acting British High Commissioner to South Africa
Reyburn Hendricks, Chief Executive Officer at Revego Africa Energy Limited indicated:
“The renewables sector is at an important point in its growth in South Africa and the rest of sub-Saharan Africa.
“The portfolio already consists of a number operational, income-earning renewable projects, with further opportunities identified in a growing pipeline.”
Reyburn Hendricks, Chief Executive Officer at Revego Africa Energy Limited
The UK Climate Investments is a joint venture between Macquarie’s Green Investment Group (GIG) and the UK Government’s Department for Business, Energy and Industrial Strategy (BEIS). Its role is to invest into the UK International Climate Finance to help the world’s developing economies tackle climate change and promote clean, resilient and inclusive growth.
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