THE Red Rocket Consortium achieved legal close for three wind projects on November 10, 2022. The projects, Brandvalley and Rietkloof wind farms that border the Western and Northern Cape provinces and Wolf wind farm in the Eastern Cape, were awarded Preferred Bidder Status in October 2021, under Round 5 or the fifth bid submission phase of the renewable energy independent power producer procurement programme (REIPPPP).
Red Rocket South Africa has successfully finalised the development of these projects initiated by G7 Renewable Energies (Brandvalley, and Rietkloof) and JUWI Renewable Energies (Wolf).
The location of the Wolf wind farm in the Eastern Cape is most likely the site located on the Klein Winterhoek mountain range on the border of the Sundays River Valley Local Municipality and Ikwezi Local Municipality, about 35 km northwest of Kirkwood.
The agreements were concluded at the IPP office in Centurion with the signing of the power purchase agreements (PPAs) with Eskom and the implementation agreements (IAs) with the Department of Mineral Resources and Energy (DMRE). Legal close will be followed by the commercial close with the Department and Eskom later this month with financial close to follow shortly thereafter.
The three wind energy projects will be built over a period of 24 months adding a total 364 MW capacity to the Eskom grid by the end of 2024. In excess of the equivalent of 600 job years for South African citizens will be created during the construction and operation periods for each of the projects. Red Rocket South Africa will coordinate the construction of the wind farms with Vestas wind turbines and local contractors.
The shareholders in the consortium with Red Rocket Energy as the lead member, African Infrastructure Investment Managers (AIIM) through its IDEAS Fund, Jade-Sky Energy, and the Red Rocket Opportunity Trust will contribute equity to the projects. Project finance funding will be provided jointly by the mandated lead arrangers, Absa and Standard Bank, for the three wind projects.
The role players
Red Rocket Energy has headquarters in Cape Town and the company provides integrated solutions, from design and development to energy production, operation and maintenance, and asset management in South Africa and beyond.
Red Rocket has in excess of 1 000 MW of plants currently in operation, under construction, or awarded as a preferred bidder and ready to reach financial close in wind, hydro, and solar developments across the continent. Red Rocket’s growth strategy is based on pursuing a balanced portfolio of renewable assets, market maturity, as well as currency exposure (ZAR, USD, and EUR).
The Red Rocket Opportunity Trust was established in 2017, The Red Rocket Opportunity Trust serves as a vehicle through which the community, Black women, B-BBEE equity interests can be held across a range of Red Rocket’s renewable energy projects. The Trust facilitates specific development initiatives with the purpose of empowerment and the upliftment of beneficiaries.
African Infrastructure Investment Managers (AIIM) has a track record of over 22 years, focused exclusively on African infrastructure. AIIM currently manages USD 2.4bn in AUM out of five locally staffed regional offices on the continent with a portfolio extending across more than 67 investments, 29 exits and operations in 19 countries throughout sub-Saharan Africa across its eight African infrastructure funds. The funds are designed to invest long-term institutional unlisted equity in sustainable African infrastructure projects which seek to drive the continent’s development such as energy transition, digital infrastructure, and transport & logistics assets.
Jade-Sky Energy is a 100%, black women-owned & managed enterprise with Level-1 BEE Status. Jade-Sky Project Management was established in 2012, as a strategic communication and project management company offering embedded consultancy services. Building on the existing platform, Jade-Sky Energy, was established as a vehicle to actively participate in renewable energy projects as an equity partner.
G7 Renewable Energies is a South African project developer based in Cape Town that has been at the forefront of South Africa’s renewable energy industry since its formation in 2008. To date, G7 has developed a comprehensive pipeline of wind projects across the country, totaling more than 2 GW.
JUWI South Africa is part of the international JUWI Group, one of the world’s leading renewable energy companies. The company develops solar, wind and hybrid renewable energy solutions and provides engineering, procurement and construction (EPC) and operations and maintenance (O&M) services for solar PV and hybrid systems. The JUWI Group was established in 1996 in Germany and is now a wholly-owned subsidiary of the Mannheim-based energy supplier, MVV Energie AG. JUWI has around 850 employees worldwide, branches on all continents and is actively engaged in various renewable energy projects around the globe. The South African office opened in Cape Town in 2011.
