Revego Africa Energy has announced a significant step forward in its renewable energy strategy with the development of a 150MW solar photovoltaic (PV) plant in South Africa’s Free State province. The project marks Revego’s first greenfield investment and is set to play a pivotal role in supplying clean, cost-effective power to the country’s commercial and industrial sectors.
The utility-scale solar plant is notable for its innovative commercial structure. Once operational, it will become the first facility of its size in South Africa to sell electricity to multiple off-takers, enabling corporate clients to reduce energy costs while meeting increasingly stringent sustainability commitments. Three multinational companies have already secured long-term power purchase agreements, among them Sibanye Stillwater and South African Breweries.
The project is being developed in partnership with SOLA Group, a leading independent power producer and project sponsor. SOLA Group is expected to begin marketing the remaining uncontracted capacity from mid-2024, with first power delivery anticipated in mid-2025.
Revego currently manages a diversified portfolio of nine operational renewable energy assets across Africa, comprising solar and wind projects with a combined installed capacity exceeding 650MW. The fund targets an annual dividend yield of inflation plus 5% to 7%, supported by CPI-linked revenues and opportunities for enhanced returns through additional generation capacity and capital growth. Its performance track record includes an annualised total shareholder return of more than 15%.
Commenting on the announcement, Ziyaad Sarang, Chief Investment Officer of Revego Fund Managers, said the investment represents a decisive contribution to South Africa’s energy transition. “This facility enables access to clean energy at an unprecedented scale while remaining cost-effective,” he said. “Innovative transactions of this nature have the potential to catalyse further private-sector investment in the power market, and we welcome institutional partners who share our long-term vision for renewable energy development.”
Revego Fund Managers’ credentials were recognised in December 2022 when it was named South African Fund Manager of the Year at the SuperReturn Africa GP Awards. The firm said the Free State solar project builds on its established strategy of disciplined investment in renewable energy assets and reinforces its ambition to remain one of Africa’s leading clean energy investors.
