Business
Nedbank and Norfund Invest $31M in Pele Energy to Boost SA’s Renewable Sector
Nedbank Group and Norwegian investment firm Norfund have joined forces to drive South Africa’s clean energy transition by investing $31 million (R573 million) in Pele Energy Group. This strategic investment secures the firms a substantial minority stake in Pele Energy, a renewable energy company co-founded by former JPMorgan Chase & Co banker, Gqi Raoleka.
This funding follows a previously secured $135 million structured loan from Nedbank, Norfund, and the Industrial Development Corporation (IDC), aimed at strengthening Pele Energy’s financial position and future capital-raising efforts.
South Africa’s Energy Transition and Growing Demand
South Africa has been making strides in stabilizing its electricity supply, but the country remains heavily reliant on coal, which generates over 80% of its power. With a growing demand for self-sufficient energy solutions, renewable energy is becoming a critical component of the nation’s energy future.
Matt Wainwright, CFO of Pele Energy Group, emphasized the need for at least 30GW of renewable energy capacity, including battery storage projects, to support the evolving power grid.
Pele Energy’s Expansion and Government Contracts
Pele Energy Group is capitalizing on South Africa’s renewable energy procurement programme, securing six out of eight approved projects in December 2024. These projects are expected to reach financial close between September 2024 and March 2026, further strengthening South Africa’s clean energy infrastructure.
This investment from Nedbank and Norfund not only reinforces Pele’s financial stability but also positions the company for further growth in South Africa’s clean energy landscape. As the country transitions towards a greener and more sustainable power grid, strategic partnerships like these will play a crucial role in shaping the future of the energy sector.
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