International Finance

UK Climate Investment to invest £14mn to build wind power in South Africa

UK Climate Investment
The 250MW wind power plant is expected to commence commercial operations in 2020 end

UK Climate Investment is planning to invest nearly £14 million in a top South African renewable energy developer HI Holdings to develop 250MW  of wind power in the country. 

HI Holdings is a clean energy company located in Cape Town. The company aims to build the 140MW Kangnas wind farm in Northern Cape province and 110MW Perdekraal East Wind Farm in Western Cape.

HI Holdings was established in 2000. 

Media reports said that the financing will take place by means of ‘innovative funding’ established by UK Climate Investment along with HI Holdings. The funding is to bolster Black Economic Empowerment entities, media reports stated. 

Nearly 40 percent of construction, operations and maintenance staff will be employed and trained from local communities for those wind projects — capable of supplying enough clean energy for 200,000 households. It is anticipated to mitigate 844,000 tonnes of carbon dioxide (CO2) emissions.

The projects are expected to commence commercial operations by the end of 2020. That said, a Kruisvallei hydro project with a capacity of 4MW in Free State province will also reap benefits through ‘critical financing’, according to the official press release. 

UK Climate Investment Managing Director Richard Abel said: “Over 90 percent of electricity generation capacity in South Africa currently relies on fossil fuels. Our partnership with H1 Holdings supports the country’s transition to a new energy mix — promoting cleaner growth in southern Africa’s largest economy whilst stimulating economic development in rural areas and supporting increased BEE participation in the renewables sector.”

Currently, 90 percent of electricity generated from South Africa is dependent on fossil fuels. The partnership is hoped to pave the way for new energy generation capacity in the country. It is UK Climate Investment’s second investment in Sub-Saharan Africa.

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