Transforming energy: Absa CIB's R1.6 billion boost for South Africa's wind farm
Once completed, FE Overberg (comprising Phase 1 and Phase 2) will constitute South Africa’s largest privately developed wind farm.
Image: Supplied.
Absa Corporate and Investment Banking (CIB) has provided renewable energy finance through the provision of R1.6 billion in facilities to FE Overberg (RF), for Phase 2 of the FE Overberg Wind Project.
Once completed, FE Overberg (comprising Phase 1 and Phase 2) will constitute South Africa’s largest privately developed wind farm. Red Rocket Holdings is the Independent Power Producer (IPP) responsible for the development of the FE Overberg Wind Project, with a total overall capacity (Phase 1 and Phase 2) of 380 MW.
With total debt facilities of R3.8bn, the Phase 2 project will generate 150MW of clean wind energy for Discovery Green (DG), a licensed electricity trader and subsidiary of Discovery Limited. The debt facilities will substantially finance the project’s full lifecycle – from design and construction to operations and maintenance – ensuring the supplying of 100% renewable energy to DG’s customers under a 25-year Power Purchase Agreement (PPA) between FE Overberg and DG. The project is expected to provide green energy to DG’s customers at a competitive energy tariff
Colin King, Resource and Project Finance Transactor at Absa CIB, said,“This transaction reflects the growing maturity of South Africa’s renewable energy market and the critical role of private sector-led wheeling solutions in unlocking new generation capacity. As more commercial and industrial players decarbonise their operations, the ability to structure scalable, bankable PPAs will be fundamental to accelerating a just energy transition.”
Absa CIB’s participation in the FE Overberg Wind Project supports its broader sustainability ambition. In 2021, Absa committed to mobilising R100bn in sustainable finance by 2025. By the end of 2024, the bank had exceeded this target more than a year ahead of schedule, mobilising R121.1bn – of which R115.3bn has been delivered through Absa CIB, including R35.2bn in 2024 alone.
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