Pele Green Energy secured 2.5 billion rand ($132 million) in funding, with major contributions from Nedbank Group Ltd., Norfund AS, and the Industrial Development Corp..
The financial support will aid Pele in constructing renewable power plants, including one commissioned by Anglo American Platinum Ltd.. Approximately 80% of the funding will be allocated to develop new renewable energy plants, advancing the company’s goal to establish 2,000 megawatts of generation capacity.
As part of its strategic growth, Pele Green Energy anticipates additional funding rounds or equity raises in the near future. The loan agreement includes a preference share clause that benefits lenders if Pele Green increases in value.
The company aims to capitalize on the growing trend among South African companies seeking alternative power sources due to regular power cuts imposed by the state utility, Eskom Holdings SOC Ltd..
The government’s recent call for private companies to build 5 gigawatts of new solar and wind power projects aligns with Pele’s plans, as it targets both private-sector projects and government-run auctions to supply the national grid.
With a focus on taking majority ownership of projects, Pele is set to complete a 200 MW generation capacity project for an international mining company in the coming year. The company aims to own and operate five gigawatts of renewable energy projects by 2027.