KEY POINTS
- Revego secures R1 billion for wind and solar expansion.
- Funding completes Springbok Solar and backs new wind projects.
- Fund targets portfolio growth to R10 billion by 2029.
Revego Africa Energy Fund has raised R1 billion, equivalent to about $62 million, in new capital to expand its renewable energy investments across South Africa, strengthening its position in one of the continent’s most established clean power markets.
The funding is expected to complete Revego’s investment in the 150-megawatt Springbok Solar Plant in the Free State province and provide financing for five wind-power projects located across the country. The fund focuses on operational wind and solar assets that deliver stable and predictable cash flows, a strategy that has helped it attract institutional investors since its launch.
Ziyaad Sarang, chief investment officer of Revego, said the latest raise could also unlock an additional R250 million, or about $15.5 million, from UK development finance institution British International Investment, provided another institutional investor matches the new commitment. He said the prospect of blended capital has added momentum to the fund’s expansion plans.
Sarang said Revego has returned R600 million, or roughly $37.3 million, in dividends to investors over the past four years. Those distributions have supported confidence among long-term backers seeking exposure to operational renewable energy assets.
Initial investors in the fund include Investec Bank Ltd., Eskom Pension and Provident Fund, and UK Climate Investments LLP, a joint venture between the British government and Macquarie Asset Management Ltd.
Operational renewable energy projects
Since launching in August 2021, Revego has invested in ten operational renewable energy projects in South Africa. Its wind portfolio includes stakes in the Loeriesfontein II, Khobab, and Noupoort wind farms in the Northern Cape. These projects operate under long-term power purchase agreements with state utility Eskom.
In the solar segment, the fund holds interests in the Aries, Konkoonsies, and Soutpan solar parks. All were developed under South Africa’s Renewable Energy Independent Power Producers Procurement Programme, which underpins much of the country’s privately financed clean energy capacity.
Sarang said the newly raised capital will complete the Springbok Solar Plant investment and support the development of five wind-power facilities nationwide. All existing investments remain within South Africa, though the fund plans to add at least one project outside the country within the next 24 months.
Fund strategy and development plans
Revego targets operational wind and solar projects that provide consistent income. Since inception, the fund has met its target yield of inflation plus 5 percent to 7 percent.
Sarang, who has more than 25 years of experience across the power, mining, and infrastructure sectors, said the fund aims to double its portfolio to R6 billion within two years and expand further to R10 billion, or about $620 million, by 2029.
Once assets under management reach between $750 million and $1 billion, management may consider a listing. Until then, the open-ended structure allows the fund to continue raising capital as new projects come online.
Revego has a pipeline of around R10 billion in operational green energy projects in South Africa, alongside plans for an additional $100 million elsewhere on the continent. South Africa remains the primary focus due to the scale and maturity of its project pipeline, as the country gradually retires coal-fired plants that still supply most of its electricity.
