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Investment & Finance

Standard Bank facilitates TotalEnergies’ hybrid renewables project in SA

The project is part of South Africa’s Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).

Africa’s largest bank by assets, Standard Bank, has partnered with TotalEnergies and Hydra Storage HoldCo to facilitate the transaction for the financing of the 216 MW solar PV and 450 MWh battery energy storage hybrid project in the Northern Cape, South Africa.

The hybrid power plant will supply 75 MW of dispatchable power to the national utility Eskom on a continuous basis from 5 a.m. to 9.30 p.m for a period of twenty years, and will supply around 400 GWh of electricity per year.

“Standard Bank was not only a leading arranger on the transaction, but also took on the roles of hedging bank, agent bank and legal documentation bank, providing the client with a well-rounded service team that was instrumental to navigating a complex transaction,” said George Kotsovos, Executive of Energy and Infrastructure Finance, Investment Banking at Standard Bank.

Improving SA’s supply constraints

The hybrid renewable energy project was awarded to a consortium which includes TotalEnergies (35%), Hydra Storage Holding1 (35%) and a B-BBEE2 partner, Reatile Renewables (30%) under South Africa’s Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).

RMIPPPP was launched by South Africa’s Department of Mineral Resources and Energy (DMRE) to develop electricity generation capacity and alleviate the country’s electricity supply constraints.

“Together with our partners, we are pleased to launch this major solar power generation and storage project in South Africa,” said Vincent Stoquart, Senior Vice President, Renewables at TotalEnergies.

“Thanks to its innovative hybrid design, it will enable us to supply continuous green electricity over a longer period and beyond the hours of sunshine. This project will not only contribute to the country’s energy transition, but also to strengthening the resilience of its power system,” Stoquart added.

Standard Bank to fund more renewables in Africa

In addition to facilitating the transaction for the hybrid renewable energy project, Standard Bank says it is committing to mobilising more funds for potential additional renewable energy projects on the African continent that need financing. The bank pledged to mobilise between R250 billion and R300 billion by 2026 for sustainable finance solutions, including lending, underwriting, and arrangement activities.

“Our clients are independent power producers that not only have plugged energy into the grid but have a pipeline of projects that will further enhance Southern Africa’s energy potential,” said Rentia van Tonder, Standard Bank’s Executive and Head of the Power Sector, Client Coverage.

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