Old Mutual Alternative Investments in South African energy deal
Old Mutual Alternative Investments in South African energy deal
Old Mutual Alternative Investments has announced a R158 million (c. $8.5 million) investment in South Africa’s energy infrastructure through its Hybrid Equity division.
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Old Mutual Alternative Investments (OMAI) has announced a R158 million (c. $8.5 million) investment in South Africa’s energy infrastructure through its Hybrid Equity division.
Old Mutual Hybrid Equity has committed preference share funding to Hydra HoldCo, enabling the acquisition of a 35% equity stake in the TotalEnergies Hydra Storage Project. The Hydra Storage Project is a hybrid 216 MWp solar photovoltaic (PV) facility with 497 MWh Battery Energy Storage (BESS).
The project comprises three co-located sites in the Northern Cape that will have a contracted capacity of 75 MW at the delivery point from which energy is dispatched to the national transmission grid.
Mujaahid Hassan, co-head of Hybrid Equity at OMAI said, “Our investment in the Hydra Storage Project is a testament to our commitment to fostering sustainable energy solutions in South Africa. This project addresses the immediate challenges of load shedding and aligns with our nation’s climate change objectives.”
“The project is on track for construction to begin this side of the year,” said Hassan.
“This venture marks a significant milestone in South Africa’s journey towards sustainable energy,” said Christopher Aberdein, director of Hydra HoldCo. “The Hydra Storage Project represents more than an investment; it’s a leap forward in our country’s energy independence and sustainability.”
The sponsor’s first bid on the Risk Mitigation IPP Procurement Programme (RMIPPPP) was issued by the Department of Mineral Resources and Energy on 24 August 2020. The project was granted preferred bidder status on 18 March 2021 and reached financial close in December 2023. The RMIPPPP was designed to alleviate supply constraints by procuring 2000 MW from a range of technologies that could be bid together to form one project.
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