Reatile Renewables has acquired a 20% interest in juwi Renewable Energies’ engineering, procurement and construction (EPC) company.
Juwi’s EPC company is currently building three projects that were procured under Round 4 of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The projects will deliver 250 MW of grid-connected solar photovoltaic (PV) capacity.
Reatile Group chairperson Simphiwe Mehlomakulu says Reatile invested in juwi as it is one of the leading companies in building and operating wind and solar power projects globally.
Juwi, meanwhile, has gained a black industrialist as a partner for the four projects secured under Round 4 of the REIPPPP.
Government had, in 2018, renegotiated the contracts with Round 4 bidders. Amendments to initial contracts included requirements for the bidders to ensure active black shareholding in the projects.
“juwi subsequently engaged with the lead equity on the three projects, Old Mutual, and we have given them the commitment that we will be at least 40% black owned and at least 50% of that ownership will be through an active black industrialist shareholder.
“I am really delighted not only because our agreement with Reatile fulfils that objective, but also because there is a clear, broader strategic fit for the two companies,” comments juwi MD Greg Austin.
In 2018, Reatile invested in six PV projects which Old Mutual secured in Round 4 of the REIPPPP, three of which are under construction by juwi, and for which juwi will also perform the operations and maintenance (O&M) for an initial period of five years.
Looking to the future with Reatile, Austin says juwi is also engaging in a transaction involving its O&M subsidiary company, with Reatile expected to acquire an equity stake in that company too.
“We are really at the stage of taking the first steps on a much longer and deeper relationship journey that we will be exploring in terms of Reatile’s participation in our projects in South Africa and on the continent, as it relates to our hybrid power projects focusing on mines,” says Austin.