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July 19, 2018updated 27 Jul 2018 3:25pm

Globeleq to acquire Brookfield’s renewable assets in South Africa

Independent power producer Globeleq has signed a definitive agreement with an affiliate of Brookfield Asset Management to acquire the latter’s interests within the South African renewable energy portfolio.

Independent power producer Globeleq has signed a definitive agreement with an affiliate of Brookfield Asset Management to acquire the latter’s interests within the South African renewable energy portfolio.

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Financial details of the agreement have not been disclosed by the companies.

Once the deal is fulfilled, Globeleq will get a major stake in six renewable projects totalling 178MWs, and also ownership in Brookfield’s South African asset management company.

Under the terms of the agreement, assets acquired by Globeleq will include five solar assets and one wind farm.

“All six projects are part of the South African Government’s renewable energy programme and began their commercial operations in 2014.”

The solar assets include Aries (11MW), Boshoff (66MW); Konkoonsies (11MW); Soutpan (31MW), as well as Witkop (33MW), and the Klipheuwel wind farm will have the capacity to generate 27MW.

All six projects are part of the South African Government’s renewable energy programme and began their commercial operations in 2014.

The projects also have a 20-year power purchase agreement (PPA) in place with the South African electricity public utility Eskom.

Globeleq CEO Paul Hanrahan said: “Our team is working hard to complete this very exciting transaction.

“The expertise of our South African team will be able to enhance these assets by driving operational improvements and improve the existing social and economic development programmes.”

Completion of the transaction is subject to various closing conditions.

Globeleq has been investing in the African energy sector. The addition of the Brookfield assets complements its existing power plants in South Africa.

Currently, the company owns, operates and manages 238MW of solar and wind projects in the African region.

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
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Enter your details here to receive your free Report.

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