Globeleq has entered into an agreement withan affiliate of Brookfield Asset Management to acquire Brookfield’s interest in its South African renewable energy portfolio.
The agreement is subject to various closing conditions and, once fulfilled, will giveGlobeleq a majority shareholding in six renewable projects totaling 178 MW, as well as ownership of Brookfield’s South African asset management company.
“Our team is working hard to complete this very exciting transaction. The expertise of our South African team will be able to enhance these assets by driving operational improvements and improve the existing social and economic development programmes,” Globeleq CEO Paul Hanrahan said in a statement on Wednesday.
The six projects were built under rounds one and two of the South African government’s Renewable Energy Independent Power Producer Procurement Programme and reached commercial operations in 2014.
All plants have a 20-year power purchase agreement with State-owned Eskom.