In a significant boost to South Africa’s renewable energy sector, Old Mutual Alternative Investments (OMAI) today announced a substantial investment in the country’s energy infrastructure today of approximately R158 million through its Hybrid Equity division.
This deal comes hot off the heels of the world’s largest congress on climate change, COP28, where African leaders emphasised the need for significantly increased climate action and green growth financing across the continent.
Mujaahid Hassan, Co-Head of Hybrid Equity at OMAI, said, “Our investment in the Hydra Storage Project is a testament to our commitment to fostering sustainable energy solutions in South Africa. This project addresses the immediate challenges of load shedding and aligns with our nation’s climate change objectives.”
Old Mutual Hybrid Equity has committed preference share funding to Hydra HoldCo, enabling the acquisition of a 35% equity stake in the TotalEnergies Hydra Storage Project. The Hydra Storage Project, a hybrid 216 MWp solar photovoltaic (PV) facility with 497 MWh Battery Energy Storage (BESS), promises substantial social and economic benefits, including increased dispatchable renewable power generation, job creation, and reductions in greenhouse gas emissions.
The Project comprises three co-located sites in the Northern Cape that will have a contracted capacity of 75 MW at the delivery point from which energy is dispatched to the national transmission grid.
“The project is on track for construction to begin this side of the year,” said Hassan.
“This venture marks a significant milestone in South Africa’s journey towards sustainable energy,” said Christopher Aberdein, Director of Hydra HoldCo. “The Hydra Storage Project represents more than an investment; it’s a leap forward in our country’s energy independence and sustainability.”
OMAI, a key player in the investment landscape, has driven innovative and impactful solutions across various sectors. With this latest venture, OMAI reiterates its commitment to advancing South Africa’s renewable energy capabilities.
The sponsor’s first bid on the RMIPPPP was issued by the Department of Mineral Resources and Energy on 24 August 2020. The Project was granted Preferred Bidder status on 18 March 2021 and reached Financial Close in December 2023. The RMIPPPP was designed to alleviate supply constraints by procuring 2000 MW from a range of technologies that could be bid together to form one project.
Aberdein said OMAI’s investment in the project is not just a financial endorsement but a strong statement of support for South Africa’s renewable energy ambitions.
“As the country continues to navigate the challenges of load shedding and climate change, such strategic investments are crucial in shaping a sustainable and resilient energy future. We are proud to be part of the solution that will not only support our energy security but also show our commitment to economic development and growth in the country,” he concluded.