UK Climate Investments marks delivery of 254 MW of renewable energy projects in South Africa

25 March 2021

UK Climate Investments has marked the delivery of 254 MW of clean energy projects it has helped finance in South Africa following the inauguration of Kruisvallei Hydro, a 4 MW run-of-river hydropower facility in the Free State province today.

Kruisvallei Hydro is the last of three renewable energy projects part-financed by the UK Government’s International Climate Finance programme, UK Climate Investments, to have entered commercial operation. The milestone at Kruisvallei Hydro follows the successful delivery of the 110 MW Perdekraal East Wind Farm in the Western Cape province and the 140 MW Kangnas Wind Farm in the Northern Cape province in October and November last year.

UK Climate Investments’ R253 million (~£13 million) partnership with the majority black-owned and managed developer of renewable energy projects H1 Holdings has created around 385 jobs during construction phase and is expected to provide a further 195 jobs over the projects’ 20-year lifecycle.

"It has been an honour to see these important projects come to life over the past two years. In addition to supporting South Africa’s low carbon transition by providing enough clean electricity to power nearly 200,000 homes per year, these projects have delivered opportunities for employment, skills development, and investment in rural communities across the region.”

Richard Abel
Managing Director of UK Climate Investments

“As COP26 Presidency we are pressing for greater ambition globally to meet the Paris Agreement’s goals. This needs us to accelerate the global transition to clean power, benefitting from low cost and sustainable energy sources such as the Kruisvallei Hydro plant.

The UK is committed to supporting green, resilient and inclusive recovery from the COVID-19 pandemic and I am delighted that this innovative UK programme, run through UK Climate Investments and Macquarie, has supported job creation, localisation and black ownership in this sector.” 

Nigel Casey
British High Commissioner to South Africa

“Much needed funding is required to transform South Africa’s energy mix and promote cleaner, greener energy systems. Our partnership with UK Climate Investments has been critical to the delivery of these projects, which will play a role in supporting South Africa to build back better and greener from the COVID-19 pandemic.”

Reyburn Hendricks
Chief Executive Officer of H1 Holdings

The three projects will help avoid approximately 844,000 tonnes of greenhouse gas emissions per annum over their lifetime, which is equivalent to taking 182,000 cars off the road for a year. In addition to supporting South Africa’s low carbon transition, each project has also committed a percentage of its annual revenue to community initiatives supporting education, housing and sustainable enterprise development in surrounding areas.

Through the UK International Climate Finance, UK Climate Investments has committed approximately £70 million over three years to support the development of clean energy and green finance markets in sub-Saharan Africa. UK Climate Investments is a cornerstone investor in Revego African Energy Limited, a first of a kind dedicated renewable energy public yieldco in sub-Saharan Africa which intends to list on the Johannesburg Stock Exchange. UK Climate Investments is also helping to finance the construction of affordable green housing in Kenya.

 

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About UK Climate Investments

UK Climate Investments is a £200 million pilot investment programme mandated to invest in India and sub-Saharan Africa. It targets transformational green energy investments where UK Climate Investments capital can mobilise additional private sector capital on a sustainable basis to promote cleaner, greener growth in these developing economies. UK Climate Investments LLP is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy. It forms part of the UK’s aid funded International Climate Finance, which is a UK Government commitment to support emerging markets and developing countries to respond to the challenges and opportunities of climate change. UK Climate Investments is managed by Macquarie Infrastructure and Real Assets, the world’s largest infrastructure manager. For further information, please visit: www.greeninvestmentgroup.com/what-we-do/uk-climate-investments and www.gov.uk/guidance/international-climate-finance.

 

About Macquarie Infrastructure and Real Assets

Macquarie Infrastructure and Real Assets (MIRA) is one of the world’s leading alternative asset managers. For more than 25 years, MIRA has partnered with investors, governments and communities to manage, develop and enhance assets relied on by more than 100 million people each day. As at 30 September 2020, MIRA managed approximately €125 billion in assets that are essential to the sustainable development of economies and communities, including: 147 portfolio businesses, ~500 real estate properties and 4.8 million hectares of farmland.

MIRA is a part of Macquarie Asset Management, the asset management arm of Macquarie Group, a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs 16,356 people in 31 markets. At 30 September 2020, Macquarie had assets under management of €339.9 billion. For further information, please visit: www.MIRAFunds.com.

 

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