Electricity + Control November 2019

Product News

ENERGY MANAGEMENT + ENVIRONMENTAL ENGINEERING

Nesa Investment Holdings acquires Makro solar sites Nesa Investment Holdings, a local renewable energy fund that invests in commercial and industrial-scale renewable energy systems, recently acquired the portfolio of Makro's carport solar photovoltaic (PV) systems, located at various Makro stores countrywide.

prices escalate annually at fixed rates. This model protects clients against abnormal tariff hikes in future. “More corporates are looking for alternative energy sources, but developing, finding or managing alternative energy does not form part of their core business,” says Frolich. “Our organisation can supply and operate the most appropriate solutions for each site. We guarantee a minimum quantity of energy, allowing our clients to focus on their business while saving energy costs.” The latest acquisition positions the fund as a leading independent investor and operator of commercial and industrial-scale renewable energy generation facilities. The fund’s current installed generation capacity is 6.6 MWp and is expected to grow to over 11 MWp by the end of 2019, with more than 20 additional solar PV sites currently at various stages of completion across South Africa. The acquisition was funded from capital raised from Nesa Investment Holdings’ shareholders, as well as a debt facility provided by Absa’s Retail and Business Bank (RBB SA). Justin Schmidt, Head of Renewable Energy at RBB SA, says, “With a significant reduction in the cost of solar module prices over the past decade and increases in the cost of electricity, solar PV has become a cost competitive solution. We are committed to the renewable energy sector and funding of commercial and industrial solar PV installations.“ For more information visit Nesa Investment Holdings: www.nesacapital.co.za

The solar PV systems generate clean, affordable electricity that is fed directly into the Makro stores, enabling them to reduce their monthly electricity bills. Solar PV also assists in relieving pressure on the national grid. The Makro sites include stores at Woodmead, Riversands, Carnival, Strubens Valley and Springfield, with construction scheduled to begin soon on the Silver Lakes site in Pretoria. The acquired portfolio has the capacity to generate some 4.4 million kWh and offset 4 700 tonnes of CO 2 emissions per year. The Strubens Valley store alone has a 480 kW peak plant output that is estimated to produce one quarter of the store’s annual energy needs. In the latest transaction, an additional two rooftop solar PV sites were acquired, bringing Nesa Investment Holdings’ assets under management to R158 million across 40 sites in South Africa. Peter Frolich, Director at Nesa Investment Holdings, explains: “Through a 20-year management agreement, we commit to covering the full installation cost of the solar PV systems and maintenance to ensure optimal performance. Our clients benefit from immediate savings in energy costs with zero capital expenditure.” The electricity generated by the systems is sold to Nesa’s clients at a discount to their current municipal utility tariffs and

36 Electricity + Control

NOVEMBER 2019