Revego Africa Energy Limited (Revego), Africa’s first YieldCo focused on operating renewable energy projects in sub-Saharan Africa, through its investment in the Revego Africa Energy Fund, has increased its portfolio of renewable energy investments to nine operating projects, through the acquisition of a 34.5% equity interest in Aurora Wind Power (Aurora) and a 7.5% equity interest in Kathu Solar Park (Kathu).
Ziyaad Sarang, Chief Investment Officer of Revego Fund Managers, the investment manager to Revego commented; “we are pleased to be consistently investing in projects which contribute positively towards South Africa’s just energy transition, both enhancing our commitment to climate change and supporting our local communities. At a time of energy insecurity, it is critical that we continue to invest in the local renewable energy sector in order to drive sustainable economic and social development for future generations.”
Built as part of Bid Window 2 of the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP), Aurora is an onshore wind project located on the west coast of South Africa in the Western Cape. Aurora was completed in June 2015 and has a capacity of 94 MW. Kathu, which was built as part of Bid Window 3.5 of the REIPPPP is a Concentrated Solar Power plant located in the Northern Cape. Kathu was completed in January 2019 and has a capacity of 100 MW. Engie Energy International, a leading developer, owner and operator of independent power projects in Africa is the developer and majority shareholder in both projects.
Revego’s portfolio now consists of five solar assets and four wind assets, all of which have 20-year Purchase Power Agreements and generate a cumulative 656 MW, enough to power over 960,000 South African homes with clean energy.
The acquisitions fit with Revego’s strategy of investing in a diversified portfolio of renewable energy assets in sub-Saharan Africa, that have a track record of generating stable cash flows, and that deliver an above-inflation dividend yield over an extended period. Revego aims to play a significant role on the continent by becoming a sizeable investor in operational assets in Africa.
Beyond the clean electricity generation from renewable sources, each plant contributes to socio-economic and enterprise development programs that support various initiatives that benefit the communities located within the vicinity of each plant. As a signatory to the UN Principles of Responsible Investing, Revego is committed to being a responsible investor and continues to have an ESG-integrated investment strategy at its centre.
About Revego Africa Energy Limited
Revego is a yield-focused investment vehicle that participates as an equity investor in, predominately, operational renewable energy assets in sub-Saharan Africa with a track record of generating stable cash flows. Revego’s objective is to provide shareholders with long-term stable returns derived from a steady stream of distributions from its portfolio. Revego remains well-placed to make acquisitions and contribute to the development of much-needed investment into South African and sub-Saharan African electricity capacity requirements.
Revego Fund Managers (Pty) Ltd. is an authorised Financial Services Provider (FSP number 47561)
