STANLIB Infrastructure Fund II, which focuses on a diverse array of infrastructure-related investments—including renewable energy, digital infrastructure, transportation, and logistics—has entered into an agreement with Scatec ASA to acquire additional interests in the Kalkbult, Linde, and Dreunberg solar power plants. These plants collectively have a total capacity of 190 MW, with the acquisition valued at R921 million.

The three plants were successful bidders in the first and second rounds of South Africa’s Renewable Energy Independent Power Producer Programme (REIPPP). STANLIB currently holds a minority interest in these solar power plants.

“We have high confidence in this investment and are pleased to increase our exposure to quality assets in our growing portfolio of renewable energy projects,” says Muhammed Munshi, of Infrastructure Investments at STANLIB.

“Our familiarity with these solar plants, having been shareholders prior to their construction, ensures that this investment aligns seamlessly with our mandate to provide investors with diversified, stable, and risk-appropriate returns. Moreover, it enhances our exposure to an asset class that acts as a powerful catalyst for economic growth and positively impacts South African communities.”

Scatec will continue to provide operations and maintenance and asset management support to the projects. The first phase of the transaction is estimated to close in the second half of 2024 and the second phase in the first half of 2025. The closing of the transaction is contingent upon obtaining the customary consents, including necessary regulatory approvals.

During its 10-year history, STANLIB Infrastructure Investments has invested in 30 assets and currently has around R12.5 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.

• Kalkbult: The Kalkbult plant, situated in the Northern Cape region, was the first project commissioned under Round 1 REIPPP in March 2014. The project holds a 20-year PPA with Eskom, the national utility company.
• Linde: Situated in the arid Karoo region of the Northern Cape, Linde benefits from extremely high levels of irradiation. Linde was commissioned in July 2014 and holds a 20-year PPA with Eskom, the national utility company.
• Dreunberg: Dreunberg is situated in the Eastern Cape of South Africa. Commissioned in December 2014, Dreunberg was the second project won under Round 2 of the REIPPP Program. The project holds a 20-year PPA with Eskom, the national utility company.
• Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy emerging markets. It is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange.