A joint statement emphasises that this transaction is strategic and complementary to both companies.
“It provides Mulilo with a robust financial partner that has an appetite to invest in new developments and planned growth. Similarly, it offers STANLIB access to a leading South African renewable energy platform with a strong development pipeline, of close to 3GW of large-scale wind and solar PV projects,” reads part of the statement.
The parties have announced their intention to participate in the strategic infrastructure 2,000MW Risk Mitigation Power Procurement Programme, as well the future Renewable Energy Independent Power Producer Procurement Programme (REI4P) Round 5 and further bidding rounds.
Mulilo is one of South Africa’s largest renewables groups with a combined operational capacity of close to 500MW of solar PV and wind projects. It has a development pipeline of renewable energy projects of 3GW in South Africa and regularly participates in opportunities on the rest of the African continent.
The renewable energy market in South Africa is set to exponentially grow over the next decade in line with the gazetted 2019 Integrated Resource Plan (IRP), which outlines increased allocations for both wind and solar PV power, up to 2030.
Furthermore, with the expected decommissioning of over 24GW of coal power plants, in the period beyond 2030 to 2050, the country’s IRP has further opened up opportunities for the renewable energy sector to support the country’s post-COVID-19 economic recovery plan.
STANLIB Infrastructure Investments manages a number of infrastructure funds and recently announced the successful close of its second fund, STANLIB Infrastructure Fund II, attracting over R4.5 billion (US$266.09m) of new committed capital.