Asset management company Moshesh Partners has reached a first close for its first renewable energy and clean infrastructure fund, and is targeting R2-billion in assets under management in the next 18 months, said Moshesh Partners co-founding member and CEO Sifiso Shongwe on April 9.
This goal was in addition to the more than 2 000 MW pipeline of solar, wind and storage projects it has already secured.
“Our investment team has a strong record in renewable energy, having already raised and deployed more than R5-billion in renewable energy projects. This includes raising and deploying capital via equity, mezzanine and debt into projects totalling 2 507 MW across solar photovoltaic (PV), wind, concentrated solar power, plastic to fuels, and open-cycle gas turbine plants,” he said.
Its timelines for investment are in 2021, with investment committee-approved investments due for deployment by the end of the second quarter.
The Department of Mineral Resources and Energy announced Bid Window 5 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) on March 18, with a further four requests for proposals expected to be released in the next 12 months.
“The timing is ideal to participate in funding a sector that is sorely needed to enable South Africa’s recovery and growth,” said Moshesh Partners co-founding member and CIO Daniel Palm.
“Projects included within the REIPPPP are long-dated with real returns, with guaranteed off-take with Eskom that is backed by the National Treasury. They offer stable cash flows, high yields and bankable security, along with a strong social and environmental impact.
“This first close positions Moshesh partners well on its journey to be South Africa’s leading broad-based black economic empowerment renewable energy fund, with its strategy of innovative financial structuring and partnering with international independent power producers and local companies to provide clean energy and independent power security,” he added.
The lifting of the threshold for embedded generation from 1 MW to 10 MW also opens opportunity for further investment in distributed generation projects. Moshesh is currently under exclusivity with two JSE-listed firms to provide on-site, as well as wheeling of, power to their entire operations in South Africa.
The government’s updated Integrated Resource Plan 2019 expects nearly 30 000 MW of new capacity to come on line by 2030, with 6 000 MW allocated to solar PV and 14 400 MW to wind energy, in addition to 500 MW a year allocated to distributed generation, which equates to R50-billion in investment required over the next ten years, the company said.