Independent power producer Decentral Energy has successfully sold 23 of its solar assets, equivalent to 11 megawatts (MW) of power, to Anuva Green Energy.
Decentral caters to customers in the retail, tourism, residential, and commercial and industrial (C&I) sectors, and offers a range of renewable energy solutions, including long-term Power Purchase Agreements (PPAs), fixed-price Energy Services Agreements, and outright purchase options. The company has developed and operates over 20 MW of solar photovoltaic assets in South Africa and has 300 MW of active development assets nationwide.
The portfolio purchased by Anuva comprises various grid-tied solar assets in retail shopping centres, residential estates, and C&I properties, based on PPAs under which customers are contracted to purchase electricity generated by the solar plant on a monthly basis for terms of up to 20 years.
Commenting on the significance of the deal, Decentral Executive Director Luel Culwick said: “This transaction has proven Decentral’s development capabilities, and the attractiveness of relatively small assets bundled into an aggregated package. Moreover, it confirms that privately owned, decentralized energy installations are becoming an established asset class.”
Zane De Decker, CEO of Anuva Green Energy, said: “The acquisition of the Decentral portfolio aligns with our strategy to diversify our assets under management into high quality, well-managed solar assets with strong off-takers. Not only is investment in the sector a necessity for our collective energy security, this also under-scores our goal of providing our investors with innovative tax-leveraged investment opportunities.”
As South Africa’s energy crisis continues, the urgency to transition to renewable energy and away from dependence on Eskom is increasing. The Decentral model provides mid-size businesses that have been especially hard-hit with affordable access to renewable energy, substantially reducing their reliance on the grid, saving electricity costs and decreasing their carbon footprint by 25–40%.
“It’s heartening to see that the model has created a virtuous cycle where, for both customer and investor, renewables and profitability go hand in hand”, notes Culwick.
The liquidity generated by the sale will be reinvested in new assets across diverse renewable energy technologies. This will allow Decentral to pursue a growth strategy that will see the company increase the scale of its renewable energy generation capacity to 45–50 MW across 30–40 C&I offtakers, with an increased focus on energy security and storage solutions in response to the current energy crisis.
The transaction was made possible with technical advisory services provided by investment bank and asset manager Lion’s Head Global Partners, thanks to support from the U.S. Agency for International Development through the INVEST initiative.