News 2020

Quarter 3, 2020

Bokpoort CSP project, now in its fifth year of production, celebrated a huge production record. The 50MW Concentrated Solar Thermal Power (CSP) Parabolic Trough Power Plant with 9.3 hour storage approved during the second bidding window of South Africa’s Renewable Energy Independent Power Producer Programme (REIPPP), set a new winter production record in August 2020. This achievement is even more significant given the growing global need for enhanced storage and dispatch capabilities, supported in parallel with considerable cost reductions in CSP Technology.

Mr Christo Spammer, Bokpoort CSP CEO, shared details of the impressive performance, highlighting that the plant recorded its highest ever production for a winter month of 21.7GWh, surpassing its previous winter record of 19.5GWh set in 2017. In addition, the plant clocked production of 902MWh in a single winter’s day on 31 August 2020 - which is the highest production ever over a single 24 hour period in winter. This is equivalent to about 18 hours of full load operations (with a 50MW turbine) akin to base-load technologies.

Retailability agrees terms with Edcon and its business rescue practitioners to acquire a portion of the ongoing business of Edgars conducted in South Africa, Botswana, eSwatini, Lesotho and Namibia. This represents an attractive opportunity for Retailability to acquire market share and a complementary store and product offering by leveraging the successes and learnings from the acquisition of Legit in 2017. Edgars offers a complementary fit to Retailability’s existing store brands

Metier, through its most recent Sustainable Capital Fund, has made a substantial investment into Broadreach Energy in a landmark renewable energy sector transaction.

The transaction is centred around Broadreach Energy’s existing commercial, industrial and small-utility scale renewable energy portfolio and operations, and provides a pipeline to invest around US$25 million in renewable energy, energy efficiency and related projects across Sub-Saharan Africa.

Broadreach Energy was founded in 2014 by a group of like-minded individuals, with a vision to be the bridge between the technical and financial worlds of renewable energy. Broadreach Energy specialises in building, operating and maintaining clean energy generation and energy efficiency projects for its clients throughout Sub-Saharan Africa, ranging from stand-alone solar photovoltaic (PV) plants in Namibia and Rwanda to rooftop installations throughout South Africa. Broadreach was one of the pioneers of power purchase agreements (PPA’s) in the commercial and industrial (C&I) solar PV sector in South Africa and has developed, advised on and invested in projects totalling over 30MW.

The transaction with Metier enables Broadreach Energy to pursue, build and scale its renewable energy strategy in the C&I and small utility-scale sectors.

Founded in 2004, Metier is an independent private equity fund management business with a proven track record spanning four decades. Metier’s Sustainable Capital practice has garnered significant traction since its inception in 2009. Building on the success of its predecessor Sustainable Capital Fund (the tenth pooled vehicle for the Metier team), Metier has to date received US$133 million in commitments to its second Sustainable Capital Fund (MSC II). MSC II will support renewable energy, energy efficiency, water and waste management investments in Sub-Saharan Africa. Broadreach Energy is the first investment for MSC II.

MSC II Principal Marc Immerman said: “We look forward to working with the Broadreach Energy team to grow their business and generate attractive renewable energy investment opportunities targeting C&I customers across Africa.”

Managing Director of Broadreach Energy, Adam Bekker said, “We are delighted to have Metier as our partners. Their supportive approach has already had an impact on our business and their investment is a game changer for us. With Metier on board we have the ability to achieve our goal of building a leading African clean energy company.”

Quarter 1, 2020

Tembo Power partners with Metier for the financing and construction of its first Kenyan hydropower plant

Tembo Power has signed a Joint Development Agreement with Metier, an independently owned private equity fund manager, for its Kaptis project, a 14.7 MW run of river hydropower project in Kenya, together with its partner WK Construction, a leading contractor in the field of hydropower in sub-Saharan Africa. This agreement now allows the partners to appoint lenders and prepare for financial closing, expected this year, and to start construction.

“Tembo Power is delighted to partner with Metier, a reputable and experienced infrastructure fund manager in Sub-Saharan Africa, supported by the main development finance institutions active in the renewable energy field. Such agreement demonstrates the thoroughness of Tembo Power’s development approach, its compliance with the most stringent international standards, and paves the way for extended collaboration with Metier and other key players in the industry.” – Raphael Khalifa, Founder, Tembo Power.

Tembo Power started the development of Kaptis (14.7 MW), in Western Kenya, in 2013 after its Kenyan partner Humphrey Mulindi identified the site and conducted preliminary investigations to assess its actual potential. Since then, the company has expanded its Kenyan portfolio with additional 17 MW, 17 MW and 24 MW hydropower projects, that are currently in development, in order to bring sustainable hydropower to Western Kenya, currently fed by power imports from Uganda, and diesel power generation. The project has been developed jointly by Tembo Power and WK Power, the investment arm of WK Construction, a leading pipeline and water works contractor in South Africa.

Metier has demonstrated success in private equity, alternative assets and related advisory services, with specific experience in the renewable power and infrastructure sectors in sub-Saharan Africa. The project will form part of the Metier Sustainable Capital International Fund II, which recently achieved a first close of USD113m. Metier has committed to provide financial support prior to actual financial closing of the project as well as to subscribe to a 40% stake in the project. WK Power will hold 20%, while Tembo Power shall retain 40%. Equity has been fully secured and development finance institutions are being appointed for senior debt. WK Construction will be the preferred EPC contractor for the Kaptis project. Tembo Power will benefit from the already existing relationship between Metier and WK Construction, which successfully constructed and commissioned the 5.25 MW Sindila hydropower project in Uganda last year. “The signature of the JDA marks the next positive step in our relationship with Tembo Power. We are excited about the prospects of the Kaptis project as well as the broader Tembo Power portfolio which fits in well with the fund’s strategic focus on small to medium scale renewable energy projects across the continent and we are looking forward to making an investment into the Kenyan energy sector and delivering clean energy in support of the Kenya Power and Lighting Company’s power supply objectives.” - Michael Goldblatt, Principal, Metier Sustainable Capital International Fund II.

Tembo Power’s objective is to develop, finance and operate power generation assets in sub-Saharan Africa, and is currently raising $100 million for its first batch of projects totaling 187MW across Kenya, Burundi and the Democratic Republic of Congo. Run of river hydropower is the one of the most environmentally friendly energy technologies globally. Projects between 10MW and 50MW offer inexpensive and reliable electricity in areas where the national electrical utilities need it most.
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