African Rainbow Energy and Power (AREP) acquires 40% of SOLA
The 40% stake acquisition by AREP effectively made the company the majority shareholder in SOLA Group
African Rainbow Energy and Power (AREP) has acquired a 40% stake in Cape Town based renewable energy company SOLA. The investment by AREP will enable SOLA to finance its expansion ambitions and broaden its activities in Southern Africa. The 40% stake acquisition by AREP late last year effectively made the company the majority shareholder in the renewable energy company.
The transaction with SOLA allows us to benefit from the utilisation of modern technology to provide affordable electricityBrian Dames, CEO of AREP.
AREP, whose founder and chair is billionaire businessman Patrice Motsepe, is focused on clean energy solutions. It has a portfolio of 740MW of renewable investments, including wind, solar PV and biomass, providing affordable energy through the utilisation of modern and renewable energy technologies.
SOLA active in both private and public renewable energy space
The SOLA Group has been active in the government market, as well as in the private sector, having been awarded 245MW in Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) projects, 78MW in commercial solar PV and 7MWh in storage projects, respectively.
SOLA also recently announced a deal with Amazon in the first ever solar PV wheeling project in South Africa. The group will provide 10 MW of clean solar power to the global company from a dedicated solar PV facility constructed 1000km from where the power is used.
“As South Africa transitions its energy usage to more cleaner sources, there is a dire need for new energy generation solutions, collaboration, technology and investment into renewable energy. A critical component of this will be to address the challenges of energy security and job creation in the country,” AREP said in a statement.
Dom Wills, CEO of the SOLA Group says their company is greatly strengthened through this partnership with AREP. “There is very good strategic fit between SOLA and AREP, and the investment comes at the perfect time for a 100% South African-owned private utility to step up and play a meaningful role in tackling our electricity challenges.”