STANLIB Infrastructure Fund II, which invests in a broad range of infrastructure-related investments, including renewable energy, digital infrastructure, transportation infrastructure and logistics, has concluded its acquisition of a majority stake in the 258 MW Upington Solar Power complex. Its total equity stake in the solar complex is 60%, following the acquisition of a 42% equity stake from Scatec, and 18% from Norfund.

Commenting on securing this investment, Greg Babaya, Head of Infrastructure Investments at STANLIB said: “Upington Solar fits perfectly within our mandate to give investors exposure to diversified, stable and risk-appropriate returns. It also enables our investors, who are largely South African pension funds, to support private sector infrastructure investment, which is key to transitioning South Africa to more reliable and cleaner energy.”

“It is our fiduciary duty to assess the attractiveness of an investment opportunity, through financial analysis, detailed due diligence and independent assessments to make decisions,” continued Babaya.

“Additionally, our experience gives investors confidence that proper risk frameworks and oversight are applied. Through actively managing each investment, we facilitate collaborations and partnerships between local communities, government entities, financial institutions, and technology providers to foster a supportive ecosystem that promotes sustainable community development,” concluded Babaya.

Upington Solar, consists of three 86MW solar PV projects, which achieved commercial operation in 2020. It has an estimated output of about 650 GWh a year. This is sufficient to power about 120 000 households and abate about 600 000 tons of CO₂ a year.

“We look forward to working with our new partners to optimise Upington Solar, ensuring increased energy production, reduced downtime, and improved overall performance,” added Andy Louw, Co-Head of Infrastructure Investments at STANLIB.

During its 10-year history, STANLIB Infrastructure Investments has invested in 30 assets and currently has around R11.5 billion assets under management. STANLIB Infrastructure Investments is actively pursuing further investment opportunities, including greenfield renewable energy projects which will assist South Africa’s transition to more reliable and cleaner energy.