The Lereko Metier REIPPP Fund (LMRF) was established with the support of FMO and DEG. LMRF was mandated to invest into the South African REIPPP program alongside LMSC. The funds have benefitted from solid project selection having secured four attractive stakes in Wind and CSP projects, representing equity commitments at a level of R550 million. There is potential that additional CSP investment opportunities will be secured through the soon to be announced REIPPP expedited bid window.
The fund is currently committed to:
| Classification | |
|---|---|
| Industry Segment | Renewable Energy |
| Investment Type | Indirect project ownership |
| Strategic partner | Mainstream |
| EPC | Siemens, Murry and Roberts and Conco |
| O&M | Siemens |
| Status | Realised asset from LMSC |
The Mainstream wind portfolio supported by the Metier Sustainable Capital Practice comprise three Wind projects (Noupoort, Loeriesfontein and Khobab) totalling 360MW. Mainstream Renewable Energy are the sponsors and operator of these projects. Mainstream are proven developers, with three successful projects from the first round of the procurement programme now operational. The projects all achieved financial close in February 2015 with the Noupoort farm completing a successful commissioning in June 2016 on schedule. The initial holders of the equity rights, Genesis Eco-Energy, remain as partners in these investments. The wind farms will be constructed on a split Engineering, Procurement and Construction Management (EPCM) basis with Siemens supplying and building the turbines and Murray and Roberts constructing the balance of plant. LMSC via LMRF secured equity stakes in these three wind projects successful in the Third Round of the Department of Energy’s renewable energy procurement programme.
The Mainstream wind portfolio was full realised in a sale to Revego Africa Energy Limited.
| Classification | |
|---|---|
| Industry Segment | Renewable Energy |
| Investment Type | Project ownership |
| Strategic partner | Engie |
| EPC | Sener and Acciona |
| O&M | Engie |
| Status | Realised asset from LMSC |
The development of the Kathu CSP plant is led by Engie who is the strategic and operational partner. The project was bid into the CSP specific procurement round held in March 2014 and achieved preferred bidder status late in the same year. Financial close occurred in May 2016 with commercial operations starting in February 2019.
Kathu is a state-of-the-art Concentrated Solar Power (CSP) plant with parabolic trough technology and equipped with a molten salt storage system that allows for 4.5 hours of thermal energy storage to provide reliable electricity in the absence of solar radiation and during peak demand. The Kathu site covers approximately 4.5 km², with 384 000 mirrors. Kathu will provide clean and reliable energy to 179 000 homes in the Sishen community in the Northern Cape and South Africa as a whole. In addition to this, it is estimated that Kathu will save six million tons of CO2 over 20 years, and will foster further local economic development through several projects, such as the trust for the benefit of the communities situated in the Northern Cape and sourcing of services from local entrepreneurs.
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