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AWPower Partners With Nedbank’s MFC To Offer Affordable Solar Energy Solutions In South Africa

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AWPower, a renewable energy solutions provider based in Cape Town, has been chosen as an approved supplier of residential solar energy solutions for Nedbank’s vehicle finance division, MFC. This selection enables AWPower to offer its customers enhanced value and quicker access to customized solar energy solutions that cater to their specific requirements.

AWPower’s Managing Director, Christiaan Hattingh, emphasizes that the company aims to provide personalized service by tailoring solar systems to meet individual energy needs and budgets. Customers now have the option to opt for Nedbank solar finance, powered by MFC, to fund their solar installations.

Nedbank’s Group Managing Executive, Ciko Thomas, assures customers that the selected suppliers have undergone thorough scrutiny and accreditation, and meet industry standards, ensuring quality and service excellence.

After assessing customers’ requirements, AWPower’s design engineers provide an initial cost estimate and preliminary design. This estimate includes an analysis of energy usage and investment. The subsequent step involves applying for finance directly through MFC, with flexible financing options available for up to 72 months.

Once approved, AWPower proceeds to engineer design, site visit, and installation. The complete process, spanning from initial contact to installation, typically takes three to six weeks, depending on product availability.

AWPower’s focus is on delivering advanced renewable energy solutions that enrich customers’ lives and contribute to a more eco-friendly, sustainable future, as noted by Hattingh.

In this article

Overview

OrganizationsAWpower, Nedbank

Sun Exchange uses bitcoin to fund 150.000 USD solar power project

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An investor, and Pretoria Boys High School (PBHS) old boy, used Bitcoin to buy a solar system worth R2.8 million for the school. PBHS was crowdsourcing a solar PV system through the Sun Exchange platform, which enables organisations such as schools and businesses to get access to solar energy systems for no upfront capital cost.

The platform allows any individual or corporation to buy and earn income from solar cells to power projects in Southern Africa. Solar cell purchases can be made in Bitcoin or standard currency.

Sun Exchange levies a R1.21 per kilowatt hour fee from customers and passes on a R0.88 per kilowatt hour return to cell owners after their service fee and insurance is deducted.

Greg Hassenkamp, the headmaster of PBHS, said that having the solar system would reduce the school’s energy costs. “Clean energy will benefit our entire campus, including our classrooms, laboratories, and special venues. At the same time the project will reduce our energy costs and carbon footprint,” he said.

The cell owner will continue to earn rental income from the solar system for the next 20 years.

Sun Exchange CEO Saul Wainwright said that finding solar financing solutions was important to accelerate the shift away from fossil fuels. He said “With the impacts of climate change becoming alarmingly real across the world, we must urgently scale solutions that address the solar finance gap for smaller solar projects in emerging markets, while also mitigating the energy crisis. A Sun Exchange statement on the PBHS crowdsourcing said that the solar system would prevent 5 800 tonnes of carbon from going into the atmosphere, the equivalent of 210 000 petrol cars being off the road for one year.”

Norway’s Scatec aims to sell power direct to South Africa buyers

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Norway’s Scatec ASA, the biggest solar power producer in South Africa, is considering direct sales to consumers who are forced to scramble for reliable electricity amid rolling blackouts.

“We are involved in a number of different negotiations, mainly with mining companies,” Scatec Chief Executive Officer Terje Pilskog said in an interview. “We’re also looking at local platforms where we can build out projects and basically sell to multiple off-takers,” which would allow for sales to smaller entities rather than just big miners.

South Africa has suffered from blackouts for 15 years as energy demand surges, while ageing power stations are poorly maintained and state utility Eskom is saddled with debt. Outages can occur for as long as 12 hours a day, and trust in government has collapsed due to a decline in public services.

Scatec currently sells power to Eskom. The Oslo-based company is also looking to expand the use of its modular solar and battery equipment in South Africa, after raising $102-million in July. The concept, known as Release, allows for relatively easy shipping and installation of solar gear. Scatec aims to provide as much as 8 gigawatts in the country, up from 448 megawatts currently.

“Rather than depending on the World Bank and those kinds of guarantees, we get smaller, shorter guarantees from the off-taker,” Pilskog said. “We know if they stop paying then we take it away and we can put it somewhere else.”

General Updates

OrganizationsScatec

Mining company Harmony commissions 30 MW solar plants in South Africa

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Harmony Gold Mining Company has commissioned 30 MW of ground-mounted solar projects in the Free State Province. The plants – Tshepong, Eland, and Nyala – are located in the town of Odendaalsrus, and the power generated will be sold to Harmony Gold Mining under a power purchase agreement (PPA) for a period of 15 years.

African Clean Energy Developments (ACED) was co-sponsor to AIIM / Old Mutual’s IDEAS Fund and was primarily responsible for procurement and PPA negotiations, the technical-commercial interface, and overarching transaction management, including raising debt funding. ACED also oversaw all land and permitting workstreams, and provided construction management.

The Tshepong project is connected directly to Eskom’s Distribution System and wheels energy to Harmony’s point of supply, where Eskom credits them for the energy supplied by the project. The Tshepong project is the first project financed “wheeling” project in South Africa, ACED says.

The Eland and Nyala projects connect directly to Harmony’s electrical system (behind the meter).

Construction of Phase 2 is expected to commence in December 2023 and be completed in FY25, the company says. Once complete, this will add a further 137 MW.

The first 100 MW of Phase 2 will be largely funded using the R1.5 billion green loan that was secured in June 2022, while the remaining 37 MW will be delivered through a power purchase agreement with an undisclosed company.

In 2020, several mining companies operating in South Africa announced their plans to build power plants relying on PV with a combined capacity of 585 MW. These include a 200 MW solar plant under development by gold provider Sibanye-Stillwater, a 75 MW facility planned by Anglo American Platinum, a 40 MW solar park by Goldfields, a 200 MW PV plant by Indian mining company Vedanta, a 30 MW project by Harmony, a 38 MW plant by Orion, and a smaller 3 MW facility by Exxaro.

In this article

Overview

OrganizationHarmony Gold Mining Company, Infrastructural, Developmental and Environmental Assets Managed Fund (IDEAS Fund), African Clean Energy Developments (ACED), Rand Merchant Bank, Energy Group, Mahlako Energy Fund
ProjectHarmony Gold Mining Phase I: Tshepong, Eland, and Nyala

Stanlib Asset Management acquires Solareff, GridCars; enables PPAs

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Stanlib Asset Management has acquired 51% of Solareff, through its Stanlib Infrastructure Fund II.

The 13-year-old Solareff is a commercial and industrial (C&I) solar and battery platform in South Africa, with more than 500 projects to date, and more than 190 MW of installed capacity, including installations such as the largest rooftop solar photovoltaic solution in the southern hemisphere and Africa.

The company aims to advance the low-carbon transition through deploying renewable solutions and reducing regional business electricity costs.

Solareff is also a 75% shareholder in GridCars.

GridCars is the biggest owner, operator and supplier of electric vehicle charging infrastructure within the country’s major cities, as well as along some of South Africa’s busiest highways.

Parallel to the acquisition of Solareff, Stanlib has also established Solareff Green, which offers capex-free energy solutions to C&I customers via power purchase agreements (PPAs).

This means Solareff Green will fund and own renewable power-generation facilities and/or storage facilities, which will then sell its generated power to customers.

Stanlib says it has committed “substantial capital” to fast-track the build-out of capex-free energy solutions for the C&I market through Solareff.

Closing of the Stanlib–Solareff transaction is subject to regulatory approval.

“We are proud to partner with Solareff and believe that our investment, particularly through our PPA offering, can make a significant social and economic impact in South Africa by allowing commercial and industrial clients access to more reliable power, at competitive tariffs,” says Stanlib Infrastructure Fund II co-head Andy Louw.

“Importantly, it contributes to the reduction of the carbon footprint of power generation.

“Stanlib is uniquely positioned to help Solareff continue its growth journey in the C&I power sector across South Africa.”

“We are all particularly excited about Solareff’s new PPA offering to the market,” notes Solareff CEO and founder Jaco Botha.

“Stanlib’s commitment to provide funding for capex-free power solutions and vast experience in managing infrastructure investments played a critical role in our choice of strategic partner.

“This investment is the beginning of our next chapter as Solareff continues to play a critical role in South Africa’s energy transition.”

In this article

Overview

OrganizationStanlib Asset Management, Stanlib Infrastructure Fund II, Solareff, GridCars, Solareff Green
SourceStanlib Asset Management acquires Solareff, GridCars; enables PPAs

Updates

Solareff

NameRoleAmountFinancing InstrumentStatus
Stanlib Infrastructure Fund IIInvestorn/aEquityNew

Harmony Demonstrates ESG in action as it concluded ESG-linked loans and starts construction of three 10 MW solar PV Plants

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Harmony Gold Mining Company Limited (“Harmony” and/or “the Company”) is pleased to announce that it has concluded a new syndicated multi-tranche, multi-currency, loan facility, aimed at sustainable development, as well as a power purchase agreement (“PPA”) facilitating Phase 1 (30 megawatts “MW”) of its renewable solar photovoltaic (“PV”) energy initiative.

The first phase of Harmony’s renewable energy journey consists of a 30MW solar energy plant in the Free State. In Phase 2, the Company will be building an additional 137MW of renewable energy at our various longer-life mines while Phase 3 is in planning stage and progressing as anticipated. Harmony expects Phase 2 of its renewable energy project to deliver over R500 million per annum in electricity cost savings once it reaches full production in FY25.

“The ESG-linked financial transactions that we have concluded, alongside the construction of the solar energy plants, are a watershed moment for Harmony and our host communities. Not only will these transactions help us to deliver on our environmental and social obligations and undertakings, but they will also de-risk the business and deliver many socio-economic benefits. ‘Mining with purpose’ is ensuring that our investors and other stakeholders continue to derive value and positive returns in a global climate of energy uncertainty,” Steenkamp added.

The conclusion of the following transactions demonstrate Harmony’s commitment to sustainable development – in particular decarbonisation:

1 Phase 1 of the solar PV power purchase agreement

In Phase 1 of Harmony’s decarbonisation strategy, the Company has established an independent power producer (“IPP”) for the construction of the three PV plants. These plants will have a total installed capacity of 30MW and will deliver more than 68 gigawatt hours (“GWh”) of clean power to Harmony’s Free State operations, mitigating 65 000 tonnes of carbon dioxide emissions in their first 12 months of operation. 1.3 terawatt hours (“TWh”) of clean energy is expected to be delivered over their 20-year lifespan.

The solar plant projects were jointly developed by Harmony, Energy Group (a specialist advisor and investor in industrial clean energy projects in Southern Africa), and BBEnergy (a South African engineering company that specialises in solving complex engineering problems in the energy and water fields).

The project was funded by a project finance debt solution from Rand Merchant Bank, a division of First Rand Bank Limited, and with the support of African Clean Energy Developments (ACED), equity-funded by African Infrastructure Investment Managers and Mahlako Energy Fund.

The plants rank amongst the biggest solar PV plants for private offtake in South Africa to date and first energy is expected to flow from the plants in March 2023.

2 Syndicated multi-tranche, multi-currency, loan facility of US$400 million and R4 billion

Harmony’s goal is to be net carbon zero by 2045. Phase 1 and 2 of Harmony’s renewable energy programme are key interventions, supported by science-based targets, as the Company journeys towards this ambition.

The syndication was led by ABSA Bank Limited (acting through its Corporate and Investment Banking Division) (ABSA), and Nedbank Limited (acting through its Corporate and Investment Banking Division) (Nedbank) and was well supported by a variety of local and international banks and financial institutions (jointly referred to as “the lending group”).

The syndicated, multi-currency, multi-tranche loan facilities include the following components:

  • a Green Loan (“Green Loan”): a R1.5 billion term loan ring-fenced for renewable energy projects as part of Phase 2 of Harmony’s renewable energy roll out; and
  • sustainability-linked loans consisting of:
    • a R2.5 billion revolving credit facility
    • a US$300 million revolving credit facility
    • a US$100 million term loan

The Green Loan of R1.5 billion is designated to fund Phase 2 of Harmony’s solar PV strategy (Phase 2 targets up to 137MW of peak generation capacity). The cash flow profile of this loan has been tailored to closely match the expected cash flow of the solar PV build, followed by the expected savings in energy costs for Harmony’s South African mining operations. Phase 2 of the solar PV project is currently in the feasibility stage and we are working on obtaining the necessary permits and licenses.

The three sustainability-linked loans align with the Company’s ESG and sustainable development targets. As part of the transaction, Harmony and the lending group have agreed on the following progressive sustainability targets, or key performance indicators (“KPIs”), over the next three financial years:

  1. KPI 1 – GHG2 emissions: Reduction of Scope 1 and 2 emissions from an FY213 baseline of 4 896 000 tons to 4 074 000 tons by FY25
  2. KPI 2 – Renewable energy mix: Targets a 20% renewable energy mix by FY25 from a 0% baseline in FY21
  3. KPI 3 – Potable water consumption: Target a reduction to 19 436 mega litres (“Ml”) of potable water consumption by FY25 from a baseline of 21 083 Ml in FY21

An independent service provider applying the Sustainability Linked Loan Principles as issued by the Loan Market Association (amongst others), has independently verified the credibility of these targets.

Upon meeting the KPIs, Harmony will receive meaningful interest savings, while inversely similar penalties become payable if all targets are missed.

The sustainability-linked loans have an original term to maturity of 3 years, and includes extension options to that could add a further 2 years to the final maturity date.

In this article

Overview

OrganizationHarmony Gold Mining Company, Infrastructural, Developmental and Environmental Assets Managed Fund (IDEAS Fund), African Clean Energy Developments (ACED), Rand Merchant Bank, Energy Group, Mahlako Energy Fund
ProjectHarmony Gold Mining Phase I: Tshepong, Eland, and Nyala

Updates

Harmony Gold Mining Phase I: Tshepong, Eland, and Nyala (Project)

NameRoleAmountFinancing InstrumentStatus
Harmony Gold Mining CompanyEPC––Added
Energy GroupEPC––Added
BBEnergyEPC––Added
Rand Merchant BankInvestorn/aDebtAdded
African Clean Energy Developments (ACED)Advisor––Added
Infrastructural, Developmental and Environmental Assets Managed Fund (IDEAS Fund)Investorn/aEquityAdded
Mahlako Energy FundInvestorn/aEquityAdded

Harmony Gold Mining Phase II: Tshepong, Eland, and Nyala

NameRoleAmountFinancing InstrumentStatus
Harmony Gold Mining CompanyEPC––Added
Energy GroupEPC––Added
BBEnergyEPC––Added
ABSA, NED Bank, a variety of local and international banks and financial institutionsInvestorR1.5 billionDebtAdded