Luzuko Nomjana, Portfolio Manager and Credit Structuring Specialist at Prescient Investment Management

Through its Clean Energy Fund, Prescient Investment Management has concluded a deal with H1 Holdings to provide R220 million to fund the latter’s investment in three Grootfontein 75MW (each) solar PV farms located in Touws River in the Western Cape.

The projects were awarded as part of the fifth bidding round of the Department of Mineral Resources’ Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) to deliver much-needed renewable energy as part of a 20-year power purchase agreement. On completion, the projects are expected to power some 100 000 households daily in the surrounding communities and reduce approximately 630 000 tonnes of CO2 emissions annually.

H1 Holdings’ primary focus is on projects that drive high ESG impact – a philosophy shared by Prescient. Says Prescient Portfolio Manager and Credit Structuring Specialist, Luzuko Nomjana: “H1 Holdings’ goals align with our focus with respect to giving investors access to ESG-centric products and supporting renewable energy generation that will alleviate the energy crisis weighing heavily on South Africa’s economy. “

“These solar farms will also contribute to the country’s development by creating employment for previously disadvantaged people in the surrounding communities and uplifting them through other socio-economic initiatives.”

Construction of the solar farms is expected to take between 12 – 18 months and is expected to go live in 2025.

The Prescient Clean Energy Fund, launched in September 2015, has invested across 31 renewable energy projects and has grown to R3.7 billion. It has contributed towards an addition of 2.3GW of clean energy to the national grid while creating 1 343 jobs.

Nomjana adds: “The fund is a vehicle for investors to access projects that are not readily available to them and provides them with long-term, stable real returns. In addition to attractive real returns, the fund offers investors an opportunity to make a pro-active, significant, and lasting contribution to developing the South African economy.”

H1 Holdings, a 100% black-owned infrastructure investment and development company, holds a 46.5% equity participation in the Grootfontein solar PV farm projects. Other shareholders in the project include Scatec Solar, with a 51% stake, and Community Trust, a 2.5% holding.

ENDS