The first specialized renewable energy yieldco will be established in Africa. UK Climate Investments has made a $34 million investment to the yieldco, which will be managed by Revego Fund Managers. Revego intends to address the issue of energy access and expedite the deployment of new clean power production capacity in South Africa by purchasing equity in operating renewable energy projects and assisting developers in unlocking and recycling capital.
The green finance vehicle was founded by UK Climate Investments, Investec Bank Limited, and Eskom Pension and Provident Fund. The initial portfolio would include interests in six projects with a total installed capacity of 605MW spread across South Africa. Revego wants to continue to expand its portfolio by acquiring additional assets around the area.
UK Climate Investments recently celebrated the completion of its most recent project in South Africa, Kruisvallei Hydro, a run-of-river hydropower plant that it co-financed with H1 Holdings, a 50 per cent black-owned renewable energy investor. The project brings the overall capacity of renewable power in South Africa financed by the partnership to 254MW.
UK Climate Investment’s dedicated team of investment professionals has committed approximately $95 million of UK International Climate Finance over three years to support the development of clean energy and green finance markets in Sub-Saharan Africa, managed by Macquarie Asset Management and supported by the wider GIG team.