The Mainstream Renewable Power's 50 MW Ilikwa solar PV plant supplies multiple private commercial and industrial customers under flexible, shorter-term Power Purchase Agreements (PPAs) in a new-to-market product called Renewable Energy Supply Agreements (“RESAs”).
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A.P. Moller Capital has agreed to acquire 100% of Mainstream Renewable Power South Africa, marking a significant investment in the country’s rapidly expanding renewable energy sector and strengthening the investor’s ambitions to build a leading independent power producer in South Africa.
The transaction, announced on Wednesday, will see A.P. Moller Capital’s Emerging Markets Infrastructure Fund II (EMIF II) acquire the renewable energy developer and independent power producer from Mainstream Renewable Power, subject to regulatory and third-party approvals.
The acquisition underscores growing investor confidence in South Africa’s renewable energy market, which continues to attract capital as the country seeks to address rising electricity demand, replace aging coal-fired power stations and accelerate the transition to cleaner energy sources.
If approved, the acquisition is expected to further accelerate renewable energy development in South Africa while positioning A.P. Moller Capital to play a larger role in the country’s evolving energy landscape.
Founded in 2009, Mainstream Renewable Power South Africa has established itself as one of the country’s leading renewable energy platforms. The company currently has 148 megawatts (MW) of operating and under-construction assets, 351 MW of construction-ready projects, and a development pipeline of approximately 11.6 gigawatts (GW) across solar, wind and battery storage technologies.
A.P. Moller Capital is a Denmark-based private equity firm focused on investing in and scaling critical infrastructure businesses, particularly in transportation, logistics and energy transition.
A.P. Moller Capital said the transaction aligns with its strategy of investing in infrastructure businesses that support economic development and energy transition in emerging markets.
“Mainstream South Africa is a high-quality business with an experienced management team, a proven track record and one of the country’s largest renewable energy development pipelines,” said Jens Thomassen, partner at A.P. Moller Capital.
“As power demand and the need for new generation capacity continue to grow, this investment strengthens our energy transition strategy and supports our ambition to build a leading independent power producer in South Africa.”
The investment expands A.P. Moller Capital’s growing portfolio of energy infrastructure assets across Africa and other emerging markets.
The fund manager has previously invested in energy businesses including Lumika Renewables in South Africa, Cabeólica in Cabo Verde, Eranove in West Africa, Impala Energy in Nigeria, the East Africa Infrastructure Platform in Kenya and Verdant Energy in Southeast Asia.
Mainstream South Africa operates a fully integrated renewable energy business with capabilities spanning project development, energy trading, project delivery, asset management and operations and maintenance.
The company has also built relationships with major industrial customers, including Sasol and Air Liquide, providing renewable energy solutions to support their decarbonisation objectives.
Following the completion of the acquisition, A.P. Moller Capital plans to work closely with the existing management team to expand Mainstream South Africa’s operating portfolio, grow its energy trading activities and advance projects within its extensive development pipeline.
Julie Berg, CEO of Mainstream Renewable Power, said the transaction would provide the South African business with the resources and expertise needed to support its next phase of growth.
“We are pleased that Mainstream South Africa will become part of EMIF II’s portfolio, with A.P. Moller Capital supporting the business in its next phase of growth,” Berg said.
“As Mainstream Renewable Power focuses on fewer markets, the South African business will benefit from an experienced infrastructure investor with the resources and expertise to support its development. We are confident that the strong and capable team in South Africa, together with A.P. Moller Capital, is well positioned to develop the portfolio and deliver on attractive projects in the pipeline.”
BUSINESS REPORT