Renewable energy overtakes coal power generation in the US for the first time in April 2019. Credit: RawFilm on Unsplash.

Independent power producer Globeleq has signed a definitive agreement with an affiliate of Brookfield Asset Management to acquire the latter’s interests within the South African renewable energy portfolio.

Financial details of the agreement have not been disclosed by the companies.

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Once the deal is fulfilled, Globeleq will get a major stake in six renewable projects totalling 178MWs, and also ownership in Brookfield’s South African asset management company.

Under the terms of the agreement, assets acquired by Globeleq will include five solar assets and one wind farm.

“All six projects are part of the South African Government’s renewable energy programme and began their commercial operations in 2014.”

The solar assets include Aries (11MW), Boshoff (66MW); Konkoonsies (11MW); Soutpan (31MW), as well as Witkop (33MW), and the Klipheuwel wind farm will have the capacity to generate 27MW.

All six projects are part of the South African Government’s renewable energy programme and began their commercial operations in 2014.

The projects also have a 20-year power purchase agreement (PPA) in place with the South African electricity public utility Eskom.

Globeleq CEO Paul Hanrahan said: “Our team is working hard to complete this very exciting transaction.

“The expertise of our South African team will be able to enhance these assets by driving operational improvements and improve the existing social and economic development programmes.”

Completion of the transaction is subject to various closing conditions.

Globeleq has been investing in the African energy sector. The addition of the Brookfield assets complements its existing power plants in South Africa.

Currently, the company owns, operates and manages 238MW of solar and wind projects in the African region.