Exxaro expands renewables with R1.8bn wind and solar acquisitions

Exxaro Resources has added to its renewable energy investments with the acquisition of majority stakes in two operational assets as it seeks to grow its clean-energy portfolio.

The company, through its subsidiary Cennergi, said on Thursday it has entered into binding agreements with Acciona Energía, a renewable energy company based in Spain. The deal gives Exxaro controlling interests in the 138MW Gouda wind farm in the Western Cape and the 75MW Sishen solar facility in the Northern Cape, as well as the operations and maintenance company for both assets.

The timing-linked purchase price, which adjusts depending on the transaction’s completion date, is expected to range between R1.7bn and R1.8bn.

Both projects were awarded under Bid Window 2 of South Africa’s Renewable Energy Independent Power Producer Procurement Programme to sell electricity to Eskom under 20-year take-or-pay power purchase agreements, which guarantee payment for a set amount of electricity whether it is used or not. The Sishen Solar’s agreement runs until 2034, while the Gouda Wind Farm’s agreement expires in 2035.

Following the acquisition, Cennergi’s net operating capacity will increase by 117MW, from 200MW to about 317MW. The company said it also has 180MW of additional capacity currently under construction, which will further expand its renewable energy portfolio and contribute to Exxaro’s target of 1.6GW of managed net renewable energy capacity by 2030.

The transaction is expected to close in the first half of 2026.

CEO Ben Magara said the acquisition marked “another positive development” in the group’s energy transition strategy. He described the deal as “strengthening Exxaro’s position as a diversified natural resources company, with a strong coal base, a growing energy solutions business, and acquisitive growth in energy transition metals”.

“Exxaro is not only investing in cleaner energy but also securing long-term, stable, and sustainable value for all our stakeholders,” Magara said.

The renewable energy assets acquisition follows another deal under Magara. In May, Exxaro announced a landmark acquisition of a portfolio of manganese assets valued at nearly R12bn.

Through the deal, Exxaro gained control over several key operations in the Kalahari Manganese Field, including a 60.1% stake in the Tshipi Borwa Mine, SA’s largest single‑mine manganese exporter, alongside interests in smaller, established operations such as Mokala and Hotazel.

Magara said the deal provides a “strong entry point into the manganese sector”, pointing to the metal’s role in steel production as well as in battery and renewable energy supply chains.