African Rainbow Energy and Power (AREP) has acquired strategic position in the SOLA Group in a move that will give significant investment to finance additional growth.
The firms joined forces in the end of 2020, with AREP obtaining a 40% stake of SOLA Energy and becoming the largest individual shareholder in the group.
AREP is focused on clean energy solutions, using a portfolio of 740MW of renewable energy investments (like wind, solar PV and biomass) supplying affordable energy throughout the utilisation of renewable and modern energy technologies.
Since South Africa transitions its energy usage to more cleaner sources, there’s a dire need for new energy generation alternatives, collaboration, technology and investment to renewable energy, it said in a statement on Thursday (28 January).
A critical component of this will be to address the challenges of energy security and job development in the country.
The transaction with SOLA enables us to benefit from the utilisation of modern technology to provide affordable electricity, as well as benefit from their experience in solar photovoltaics (PV). This also supports our strategic focus on providing clean energy for the industrial and commercial sectors.
AREP and SOLA share a vision of using the latest, cleanest technology available to deliver exceptional climate and company returns — both for our customers and investors.
Brian Dames, CEO of AREP
The SOLA Group was busy in the government market, in addition to from the private industry, having been awarded 245MW in renewable energy independent power producer procurement programme projects, 78MW industrial solar PV and 7MWh storage projects, respectively.
SOLA employs over 70 people as a platform, with additional employment of between 30 and 100 staff throughout the building of projects.
Our organization is greatly strengthened through this partnership, there is quite great strategic fit between SOLA and AREP, and also the investment comes at the perfect time for a 100 percent South African-owned private usefulness to measure up and play a meaningful part in tackling our power challenges.
South Africans require the least expensive electricity available from a variety of competitive resources, which may occur through private or government energy procurement. SOLA’s plan and support offering accommodates both versions.
Dom Wills, CEO of the SOLA Group
The trade will also see two AREP Directors joining SOLA’s board.
SOLA recently announced a deal with Amazon, at the first solar PV wheeling project in South Africa. The team will provide 10 MW of solar power to the worldwide company from a committed solar PV facility built 1000km from where the power is utilized.
