Dr Patrice Motsepe, founder snd chairman of African Rainbow Energy.
Image: Karen Sandison / Independent Newspapers
African Rainbow Energy (ARE), founded by well-known South African entrepreneur Dr Patrice Motsepe, has acquired control of South Africa’s biggest independent power company, SOLA Group, which holds a R20 billion renewable energy portfolio.
ARE increased its stake in SOLA Group to 83% from 41%, for an undisclosed amount, consolidating majority control over the renewable energy platform, a statement said Tuesday.
The transaction will see SOLA accelerate efforts to support the decarbonisation of the country’s electricity sector. SOLA owns 1,100 MWp of solar PV and 730 MWh of battery energy storage in construction and operation.
ARE has Ubuntu-Botho Energy Holdings as its parent, which was founded and controlled by Motsepe, and which has Absa Bank as a partner, an online search by Business Report showed.
Following the increased investment in SOLA Group, ARE is invested across a diversified portfolio of renewable energy projects totaling 2,000 MW. Of this, 1.5 GW is already operational, with a further 500 MW under construction. In addition, it owns a R5bn debt portfolio across 20 renewable energy assets.
“Our partnership with SOLA Group over the past five years has seen the company grow significantly, delivering clean energy solutions to large South African corporates,” said SOLA EO Brian Dames in a statement.
He said this acquisition, together with the additional investment, supported ARE’s target of building a large-scale energy company that provides affordable clean energy to clients.
Motsepe, ARE chairman, said the deal positioned them as one of the largest, most competitive, independently owned energy businesses in South Africa that provides affordable electricity and delivers competitive returns to investors.
“This transaction also advances our objective of building ARE into a world-class African energy company,” said Motsepe.
SOLA Group has been focused on selling power to private companies through on-site projects or using Eskom’s wheeling program, where energy can be supplied to corporates from a distance.
“SOLA has focused on the journey of the corporate consumer, mapping their least-cost pathways to net-zero carbon. This requires an in-depth understanding of complex technology options, regulatory pressures, and decentralised generation and storage – all expertise that sits within SOLA,” said SOLA Group director, Dom Wills.
As part of the transaction, Simon Haw, Chris Haw and Dom Chennells would remain actively involved in the business, while stepping back from their executive roles. They will be assuming positions as non-executive directors on the SOLA Group board, while retaining shareholdings in the company.
Wills was appointed Group CEO, a role he previously held from 2017 to 2024. The broader management team remained unchanged.
This year, SOLA closed South Africa’s first private solar and BESS (battery energy storage system) wheeling project, with Sasol as offtaker.
Founded in 2008, the company has spent nearly two decades pioneering renewable energy in South Africa.
A series of industry firsts includes building South Africa’s first 1 MWp+ rooftop solar installation in 2013, the largest in the country at the time, and closing South Africa’s first renewables wheeling project, a 12 MWp solar facility with Amazon as offtaker.
In 2022, it closed the first utility-scale wheeling project to a private client following the lifting of NERSA’s licensing requirements, a 256 MWp project supplying Tronox. In 2023, it closed the 195 MWp Springbok Project, the first utility-scale wheeling project with multiple private offtakers.
BUSINESS REPORT