African Rainbow Energy and Power (AREP) has expanded its investment into renewable energy with a strategic 40% stake in the Sola Group.
The acquisition, which has been completed, makes AREP the largest individual shareholder in the group.
Sola is a solar installation company active in SA’s public and private sector, having been awarded 245MW of the government’s independent green power projects, 78MW of commercial solar PV and 7MW of storage projects.
AREP, founded by billionaire businessman Patrice Motsepe, is an energy company focused on clean energy solutions with a portfolio of 740MW of renewable investments.
For comparison, the government’s renewable energy programme has procured 6,329MW to date. Eskom’s total installed power generation capacity is 44,000MW.
The Integrated Resource Plan 2019, a government electricity infrastructure development plan, envisages a further 6,000MW of solar power needs to be generated by 2030 for SA’s power grid as ageing coal power plants are gradually decommissioned.
Some of Eskom’s coal plants were designed to last for 50 years and reach the end of their lifespan in 2019, allowing the government to plan to replace some coal-energy generation with more wind and solar energy.
“AREP and Sola share a vision of using the latest, cleanest technology available to deliver excellent climate and business returns, both for our clients and shareholders,” said Brian Dames, CEO of AREP.
“The transaction with Sola allows us to benefit from the utilisation of modern technology to provide affordable electricity, as well as benefit from their expertise in solar photovoltaics. This also supports our strategic focus on delivering clean energy for the commercial and industrial sectors.”
Dames was the CEO of Eskom between 2010 and 2014.
The deal with AREP also includes an investment into the group to fund further expansion.
Sola CEO Dom Wills said the investment comes at the perfect time for a 100% SA-owned private utility to step up and play a meaningful role in tackling SA’s electricity challenges.
“South Africans need the cheapest power available from a variety of competitive sources, which can happen through government or private energy procurement,” he said.
Sola recently announced a landmark deal with Amazon in the first solar PV wheeling project in SA. The group will provide 10MW of clean solar power to the global company from a dedicated solar PV facility constructed 1,000km from where the power is used.
Sola has put solar panels on the Atrium Mall in Eshowe and built and operates the independent solar panel energy grid on Robben Island that generates all of the island’s power. It says in company communications that a “low cost cleaner energy grid is within reach for SA — with the right policy reforms”.
Motsepe has been investing in solar energy for some time. In 2019, he put R50.5m into SA blockchain tech start-up Sun Exchange that allows users to put up solar panels on their properties and lease the energy to consumers or companies.
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