South African asset manager Stanlib’s Infrastructure Investments unit has acquired a 10% equity stake in Mulilo Energy Holdings, which is a R1.8-billion privately-owned renewable energy developer.
This transaction is strategic and complementary to both companies, Mulilo says.
“It provides Mulilo with a robust financial partner that has an appetite to invest in new developments and planned growth.
"Similarly, it offers Stanlib access to a leading South African renewable energy platform with a strong development pipeline of close to 3 GW of large-scale wind and solar photovoltaic (PV) projects,” the company notes.
The parties have announced their intention to participate in the 2 000 MW Risk Mitigation Power Procurement Programme, as well the future Renewable Energy Independent Power Producer Procurement Programme Round 5 and further bidding rounds.
Moreover, Mulilo is involved in several projects that provide clean energy to large industrial and commercial energy users across the country.
The renewable energy market in South Africa is set to exponentially grow over the next decade in line with the gazetted Integrated Resource Plan 2019 (IRP 2019), which outlines increased allocations for both wind and solar PV power up to 2030.
Further, with the expected decommissioning of more than 24 GW of coal-fired power plants from 2030 to 2050, the country’s IRP 2019 has further opened up opportunities for the renewable energy sector to support the country’s post-Covid-19 economic recovery plan, says Mulilo.