Absa pays for the first projects that use renewable energy to reach Financial close

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Renewable energy project

EDF Renewables South Africa has contributed four wind farms to the South African (REIPP) programme already and Absa is privileged to lead these two projects to close.

Absa acted as the joint mandated lead arranger and lender for two of EDF Renewables’ renewable energy projects which reached financial close on 10 November 2022.The projects comprise two 140MW wind farms which will be located in the Northern Cape and developed at a total estimated capital cost of R7.7billion.

These two projects will be the first of three projects by EDF Renewables to reach financial close under the 5th bid window of the South African Renewable Independent Power Producer (REIPP) programme. EDF Renewables’ third project under Bid Window 5 is expected to close soon, bringing the total project capital cost to an estimated R11.5 billion.

These projects are being developed by EDF Renewables as the lead sponsor together with Gibb Crede Wind Farm Investments and H1 Holdings. The total project size for the three projects combined will be 420MW(3 x 140MW each).The power generated will be supplied to Eskom under a 20-year power purchase agreement.

“Absa continues to support the South African renewable energy programme, having now financed over 3.5GW’s of projects since the inception of the programme more than a decade ago.

This transaction strongly demonstrates our ongoing commitment to financing clean energy projects and the acceleration of investments that make a sustainable impact on the communities we serve,” says Shaun Moodley, Principal within Absa’s Resource & Project Finance team.

The financing of projects in this sector is in line with Absa’s sustainable finance goals, which include helping our clients on their journeys to become sustainable and also assisting Eskom with transitioning from fossil fuels to renewable energy sources, thereby significantly reducing greenhouse gas emissions in South Africa.

The REIPP programme is critical in helping Eskom to add renewable power generation capacity to the grid in line with the country’s energy transition objectives and sustainable development goals,” says Moodley.

EDF Renewables is a locally based, fully integrated independent power producer that develops, finances, builds, owns and operates commercial renewable energy generation facilities. It’s a subsidiary of EDF Renewables, the renewable energy arm of global utility EDF, whose expertise include wind, solar PV, battery storage and hybrid solutions.

The EDF Group is a lead in utility and one of the biggest power producers in the world with a total installed generation capacity of 122 GW .EDF Renewables South Africa has contributed four wind farms to the South African (REIPP) programme already and Absa is privileged to lead these two projects to close, contributing 280MW to the grid.

Source: Absa newsroom

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