Stanlib Asset Management Invests in South African Solar and Battery Platform Solareff
Stanlib Asset Management, a local investor in sustainable infrastructure, has acquired a stake in Solareff, a 13-year-old commercial and industrial (C&I) solar and battery platform in South Africa. Solareff boasts over 500 projects and more than 190 MW of installed capacity, including significant installations like the largest rooftop solar photovoltaic solution in Africa.
The primary aim of Solareff is to drive the transition to low-carbon energy by implementing renewable solutions that also reduce regional business electricity costs.As part of the acquisition, Stanlib has created Solareff Green, a venture that will offer capex-free energy solutions to C&I clients through power purchase agreements (PPAs). Solareff Green will own and finance renewable power generation and storage facilities, selling the generated power to customers.
Stanlib plans to invest significant capital to expedite the development of capex-free energy solutions for the C&I market through Solareff. The transaction’s finalization is subject to regulatory approval. Andy Louw, Co-Head of Stanlib Infrastructure Fund II, expressed pride in the partnership and highlighted the potential impact on South Africa’s power reliability and carbon footprint reduction.
Solareff’s CEO and founder, Jaco Botha, emphasized Stanlib’s strategic role due to its funding capabilities and expertise in infrastructure investments, noting that this investment marks a pivotal step for Solareff in contributing to South Africa’s energy transition.
Opinion:
The investment by Stanlib in Solareff showcases the increasing interest of financial institutions in supporting sustainable energy solutions. The creation of Solareff Green, with its capex-free energy solutions through PPAs, aligns with the growing demand for renewable power options by commercial and industrial customers, contributing to the transition to a cleaner energy future.