Standard Bank has closed a R4.9bn deal for the 140MW Ishwati Emoyeni Wind Farm project, marking the first time a renewable energy project of this scale has reached financial close with an energy trader as the offtaker.
The wind farm, located in the Western Cape, is being developed by Africa Clean Energy Developments. The Cape Town-based renewable energy development company has African Infrastructure Investment Managers and Reatile, a Johannesburg-based black-owned investment company, as shareholders.
NOA Group, a renewable energy independent power producer and trader, which received its trading licence in January, will purchase electricity from Ishwati and aggregate it with power from other renewable sources. The electricity will then be distributed to multiple business customers across SA via the Eskom grid.
Standard Bank acted as the sole mandated lead arranger for the project, which is expected to start generating electricity in 2026.
The bank aims to achieve net-zero carbon emissions from its operations by 2040 and from its financed emissions by 2050, aligning with the Paris Agreement.
“Together with our partners, we are proud to have played a leading role in this pioneering project, which demonstrates our commitment to supporting the growth of SA’s renewable energy sector,” said Sherrill Byrne, Standard Bank executive for project finance, energy and infrastructure finance.
The wind farm will comprise 32 Vestas 4.5MW wind turbines, each standing 120m high. Construction began in September 2024.
“With NOA Trading holding its trading licence, we are authorised to purchase electricity from Ishwati and other third-party IPPs [independent power producers], aggregate it and wheel it through the Eskom grid to geographically dispersed off-takers across the SA market,” said NOA CEO Karel Cornelissen.
“The deal underscores Standard Bank’s commitment to innovation and sustainability in the energy sector, reflecting the bank’s role as a catalyst for change in driving SA towards a more diversified energy landscape,” Tuesday’s statement read.
“This commitment highlights the bank’s role as a leader in sustainable finance and renewable energy, supporting SA’s transition to a greener future.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.