Fast view
- Ninety One approved a credit line to participate in the senior debt of Droogfontein Solar Two, a 75MW solar PV plant in South Africa.
- The project operates under a 20-year PPA with Eskom, backed by a government guarantee.
- Operational since March 2020, the plant is already generating stable revenues aligned with base-case forecasts.
| Sector: | Utilities – Renewable Energy (Solar PV) |
| Total commitment: | R320 million (up to 25% of senior secured debt) |
| SDGs*: |  |
Background
Droogfontein Solar Two is a 75MW solar photovoltaic facility located 15km north of Kimberley, Northern Cape, South Africa. Developed under Round 4 of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), the plant began commercial operations in March 2020. It uses single-axis tracking technology across a 180-hectare site and is connected to the national grid via the Kimberley–Macfarlane 132kV line. The project sells electricity under a 20-year, take-or-pay Power Purchase Agreement with Eskom, supported by a government Implementation Agreement, which includes economic development obligations and guarantees Eskom’s payment obligations.
Opportunity
Considering the transaction had a proven operational track record, Ninety One viewed the opportunity as having derisked and, therefore, was suitable for a wider range of clients, particularly risk-averse mandates. Ninety One worked with Nedbank to participate in a secondary sale of senior debt exposure in a portfolio of four renewable projects, including Droogfontein Solar Two. The transaction offers an opportunity to back a cash-generating asset with predictable income and solid environmental credentials. It also aligns with the increasing need for private capital to support South Africa’s clean energy infrastructure amidst Eskom’s restructuring and broader energy reforms.
Contribution and impact
The project contributes 193.7GWh of clean electricity annually—supporting South Africa’s shift away from coal dependency. It helps meet national targets under the Integrated Resource Plan and supports SDG 7 by providing affordable and sustainable energy. From a social and governance standpoint, the project includes a local community trust holding a 4.99% stake and Reatile as a 15% BEE shareholder. Economic development obligations include job creation, skills transfer, and preferential procurement. Over the plant’s lifespan, it is expected to avoid significant greenhouse gas emissions and maintain high availability levels, contributing positively to South Africa’s energy resilience and climate goals.
*The SDG and related logos are referenced for illustrative purposes only and their use does not imply any endorsement of our products or services by the United Nations.