African Infrastructure Investment Managers wind farm reaches financial close
The ACED-IDEAS-REATILE Consortium has reached financial close with its lender Rand Merchant Bank on the 69MW Msenge Emoyeni Wind Farm in South Africa.
This marks the effective date of the power purchase agreement (PPA) between Sasol and Msenge for the supply of renewable energy to Sasol’s Sasolburg site via a wheeling arrangement. The power Sasol is purchasing from Msenge will be used to secure renewable energy supply for green hydrogen production.
Msenge represents a consortium of co-sponsors and equity investors led by African Clean Energy Developments (ACED) and consisting of African Infrastructure Investment Managers (AIIM) and Reatile Renewables. ACED and AIIM are co-sponsors and the equity in Msenge is owned 62% by AIIM, through its flagship IDEAS Fund, and 38% by Reatile. Rand Merchant Bank has partnered the consortium as sole mandated lead arranger for the project.
The Msenge Wind Farm is the first utility scale private wind farm in South Africa with its power wheeled across the national electricity grid. It is also the first of several renewables projects that the consortium intends to bring into construction in 2023. ACED is a renewable energy developer that has already spearheaded the delivery of more than 1,200MW of renewable energy under the Department of Minerals and Energy’s REIPPPP process and 30MW in the commercial and industrial market.
The energy will originate from Msenge wind farm, located near the town of Bedford, about 200km north of Gqeberha in the Eastern Cape province of South Africa. The farm was originally developed by Windlab South Africa but has been acquired, further developed and financially closed by ACED and AIIM. ACED will also manage construction and another AIIM affiliate, Energy Infrastructure Management Services, will manage operations once construction is complete.