R2.5bn funding platform unleashes 1.1GW of clean energy
Nedbank CIB structures bespoke financing solution for 100% black-owned independent power producer Pele Green Energy

A R2.5bn funding solution will allow Pele Green Energy (PGE), one of SA’s largest 100% black-owned independent power producers (IPPs), to deliver 1.1GW of clean energy.
With the support of a facility originated and structured by Nedbank Corporate & Investment Banking (CIB), PGE aims to increase its pipeline of renewable energy projects from 1GW to 5GW by 2027.
Nedbank CIB contributed R1bn to the consolidated funding platform for PGE, which replaces the company’s previous capital-raising frameworks that operated on a project-by-project basis.
The remaining commitment came from the Industrial Development Corporation (R829m) and Norfund (R658m), which are development finance institutions of the governments of SA and Norway respectively. Nedbank CIB was the mandated lead arranger, underwriter and bookrunner for the transaction.
The platform provides PGE with a capital base that will allow it to play a meaningful role in facilitating SA's Just Energy Transition as well as to benefit from the cross-collaterisation of different technologies, including those for wind, solar generation and battery storage.
About 80% of the projects PGE plans to develop are for the private sector, with the rest developed through government auctions bids to supply the national grid.
PGE’s increased investment programme has resulted in it expanding its staff complement by 49%, as well as making a 20% investment in two wind farms and a solar farm on the border of the Northern Cape and Eastern Cape that will provide 520MW of clean energy for Anglo American’s mining businesses in SA.
The platform facility will also help PGE to supply an additional 850MW of clean energy to Anglo American Platinum, among others.
As more organisations seek to take advantage of the liberalisation of the energy market, Nedbank CIB can draw on its extensive ecosystem of relationships and expertise to assist
To be able to do so, however, it needed an innovative mezzanine funding solution to enable it to streamline the delivery of its project pipeline, and it turned to Nedbank CIB to structure this bespoke transaction.
Nedbank CIB’s Principal Finance and Energy Finance teams were able to leverage strategic partnerships with capital allocators who share the bank’s commitment to key sectors capable of driving SA's energy recovery and economic growth. In doing so, the bank had the opportunity to back a locally-owned, empowered business in a sector that has been dominated by foreign, government-backed IPPs.
Nedbank CIB’s support for PGE illustrates its credentials as one of the leading banks in the financing of renewable energy projects.
As more organisations seek to take advantage of the liberalisation of the energy market, Nedbank CIB can draw on its extensive ecosystem of relationships and expertise to assist. In the case of PGE, it has been able to align itself with a company that shares its determination in having a positive affect on society.
About PGE
PGE was formed 15 years ago by a group of young black professionals, and in 2011 it was one of the inaugural IPPs granted power generation licences. The recent government decision to remove the cap on the amount of energy IPPs can produce means that the company can now move faster to help alleviate pressure on the national grid.
PGE is dedicated to uplifting local enterprises and has supported several small businesses through its enterprise development programme, including a solar installer in Mpumalanga. Its bursary scheme is tailored to benefit previously disadvantaged individuals and its internship programme offers training and workplace experience to graduates in renewable energy, empowering them for future success.
The company has trained 100 students — all black female artisans between the ages of 20 and 28 — in Mpumalanga, and 17 are now employed by reputable companies. In addition, 15 Nkangala TVET College lecturers trained by PGE have introduced courses in renewable energy technology (RET) and PGE’s facilitator has been recognised as a national RET expert.
These are examples of the surprising grassroots benefits that flow from clean energy, but Nedbank CIB's role in driving sustainable growth in the sector extends further into a fast-growing ecosystem.
Liberating SA’s energy sector
Nedbank CIB is funding a growing number of aggregators, which bridge the gap between electricity generators and consumers. They buy electricity from multiple IPPs and sell it to various offtakers including mining companies, industrial users, municipalities and even Eskom.
Aggregators use the transmission and distribution grid to wheel power from generation points to consumption sites, and by combining the demand of multiple customers into a single large volume, they can negotiate better tariffs and terms with IPPs.
The bank is also following the progress of the Electricity Regulation Amendment Bill, which is now on the president’s desk after having been approved by the National Council of Provinces in mid-May. The legislation provides for additional electricity generation capacity and infrastructure, and paves the way for an open-market platform that will allow competitive electricity trading.
Nedbank CIB is standing by to play its part in funding the further liberalisation of SA’s energy sector and the socioeconomic benefits it will bring. In the meantime, Anglo American Platinum is preparing to operate its mines using power generated from sunshine and fresh air, and with its deep ecosystem knowledge Nedbank CIB expects a cascade of environmental benefits to follow.
Consider this: Platinum group metals (PGMs) are essential in electrolysers, which split water molecules — a promising technology for producing hydrogen. PGMs are also needed in hydrogen-powered fuel cells, which use chemical reactions to generate electricity. Anglo American hopes to use solar energy from PGE to produce green hydrogen that will then be used to power mine haul trucks converted to run on zero-emission fuel cells.
This virtuous circle has the potential to reduce and eventually eliminate the use of fossil fuels, and it is Nedbank CIB’s ability to identify and capitalise on these unexpected connections that creates sustainable growth.
This article was sponsored by Nedbank CIB.
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