Market transformation
The transaction is expected to unlock US$500 million of new renewable power development.
| Investee Company | Etana Energy |
| Sector | Power/Energy |
| Country | South Africa |
| Total Project Cost | USD 100m |
| PIDG Commitment |
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| Dates of PIDG involvement |
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Recent regulatory changes in South Africa have opened the opportunity for private power producers to sell renewable electricity to business customers. Companies like Etana Energy are looking to leverage this opportunity, expanding the addressable market by buying renewable energy from private generators and then selling that output to a portfolio of commercial customers by “wheeling” the electricity across the existing transmission network.
PIDG (through GuarantCo) and British International Investment will provide $100 million ($50 million each) of default guarantee finance for Etana Energy in South Africa’s largest “energy wheeling framework” transaction.
This innovative type of deal is designed to unlock new renewable energy capacity by providing independent power producers with the revenue certainty they need to break ground on new renewable energy projects.
The transaction is expected to unlock US$500 million of new renewable power development.
The guarantee facility will enable around 500MW to be added to the grid by several wind and solar independent power producers over the next few years.
Displacing fossil fuel generation with electricity generated from renewable sources will avoid more than 1.2 million tonnes of CO2-equivalent emissions annually.
Providing a major boost to South Africa’s green energy transition – underlining the UK’s support for the country’s Just Energy Transition Partnership. JETP serves to accelerate the country’s environmental transition in the energy sector.
