Pilot investment programme UK Climate Investments on August 18 fulfilled its cornerstone commitment of R500-million to help establish Africa’s first dedicated renewable energy yieldco, which is managed by majority black-owned fund manager Revego Fund Managers.
Revego aims to tackle the challenge of a lack of access to electricity in sub-Saharan Africa, and accelerate the deployment of new clean electricity generation capacity by acquiring equity in operational renewable energy projects across the region, helping developers unlock and recycle capital.
UK Climate Investments has established this green finance vehicle alongside Investec Bank and the Eskom Pension and Provident Fund.
The initial portfolio will comprise stakes in six projects across South Africa, with a combined installed capacity of 605 MW.
Revego intends to continue to grow its portfolio through the acquisition of new assets across the region.
UK Climate Investments is a joint venture between Macquarie’s Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy, which invests UK International Climate Finance funding to help the world’s developing economies tackle climate change and promote clean, resilient and inclusive growth.
UK Climate Investments also recently marked the delivery of its latest project in South Africa – Kruisvallei Hydro – a run-of-river hydropower facility which it part-financed alongside majority black-owned renewable energy investor H1 Holdings.
The project takes the total capacity of renewable electricity financed through the partnership in South Africa to 254 MW.