
Renewables investor Magnora has acquired 92% of South Africa-based solar and wind project development company African Green Ventures (AGV).
The deal will bring Norway-based Magnora’s South African renewables portfolio to around 1.7GW as it takes on AGV’s project rights of more than 800MW of solar and wind capacity. The remaining 8% of AGV will be held by the company’s management.
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With more than 10GW of coal energy capacity expected to be decommissioned in South Africa by 2030, Magnora touted the potential for developing solar and energy storage projects in the country.
“We see great opportunities in South Africa, both in the short and long term, and we expect increased power consumption due to economic development and green electrification,” said Erik Sneve, CEO of Magnora.
Operational synergies are expected through the AGV deal as the company has already carried out some of Magnora’s development activities in South Africa.
As part of the transaction, Peter Nygren, Magnora’s EVP of strategies, will step down from his position and become an active owner in AGV to pursue opportunities in South Africa.
Magnora’s portfolio of renewables investments also includes Evolar, a solar cell technology company that it owns a 50% stake in, and Swedish solar developer Helios Nordic Energy.
South Africa’s commercial and industrial solar segment has been boosted by a reform announced last year that has increased the country’s licensing exemption threshold for embedded generation projects from 1MW to 100MW.