Copenhagen Infrastructure Partners-owned independent power producer (IPP) Mulilo has reached financial close on its 75 MW solar project in South Africa. The Du Plessis Dam Solar PV2 facility, located near De Aar in the Northern Cape, is financed by Standard Bank, which acted as the mandated lead arranger.
Project Overview ☀️
- Capacity: 75 MW Solar PV.
- Location: Near De Aar, Northern Cape, South Africa.
- Financing Lead: Standard Bank.
- Local Investor: H1 Capital.
- Offtake Agreement: South African electricity trading platform Etana Energy (owned by Chariot – 49% & H1 Holdings – 51%).
- Advisors: Pepper Tree Capital, Bowmans, and ENS.
Financing & Investment Structure 📊
- Etana Energy Financing:
- USD 55 million guarantee financing.
- Up to USD 20 million equity investment from Standard Bank and Norway’s Norfund.
- Historical Support:
- In December 2024, GuarantCo and British International Investment provided USD 100 million in default guarantee financing to Etana.
Financial Modelling Considerations 📈
For financial analysts and investors, the bankability of South African solar projects depends on:
- PPA & Offtake Risk Analysis: Evaluating Etana Energy’s market stability and revenue potential.
- Debt vs. Equity Financing: Assessing leveraged finance structures with Norfund and Standard Bank.
- Cash Flow Forecasting: Analyzing tariff structures and expected IRR for investors.
- Risk Mitigation: Understanding the impact of guarantee financing mechanisms.
- Carbon Credit Potential: Exploring additional revenue streams from emissions reduction credits.
Strategic Impact on South Africa’s Energy Sector ⚡
- Diversifying Energy Supply: Enhancing renewable energy contributions in South Africa’s power mix.
- Reducing Dependence on Eskom: Supporting the private electricity trading market.
- Boosting Investment in Renewables: Attracting international capital into South Africa’s solar sector.
- Job Creation & Economic Development: Expanding local investment opportunities through H1 Capital.
Looking Ahead 🚀
With renewable energy financing models evolving in South Africa, projects like Du Plessis Dam Solar PV2 set a precedent for private market-driven power solutions. The involvement of Etana Energy, Chariot, and international financiers highlights the growing role of blended finance in supporting Africa’s energy transition.
🔍 Interested in financial modelling for solar projects? Explore the Finteam Solar PV Model Template on Eloquens for expert insights: Finteam Solar PV Model Template. Let’s drive sustainable investment together! 🌞📊
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