NEWS

Exxaro Resources Limited, through its wholly owned, subsidiary Cennergi, has entered into binding agreements with Acciona Energía to acquire majority interests in two fully operational renewable energy assets - the 138MW Gouda Wind Farm in the Western Cape and the 75MW Sishen Solar Facility in the Northern Cape, as well as the company responsible for the operations and maintenance (“O&M”) of both assets. The timing linked purchase price will range between R1.7 billion to R1.8 billion.

Both assets are projects that were procured under Bid Window 2 of South Africa’s Energy’s Renewable Energy Independent Power Producer Procurement Programme and sell electricity to Eskom under 20-year take-or-pay Power Purchase Agreements (“PPAs”). The PPAs run until 2034 (Sishen) and 2035 (Gouda).

Gouda and Sishen are held 54.9% by ACCIONA Energía, 25.1% by Celenex (a majority owned subsidiary of Royal Bafokeng Holdings), 10% by Soul City Broad Based Empowerment Company (Pty) Ltd (Soul City) and 10% by local Community Trusts.

The transaction includes Acciona’s 80% stake (with the remaining 20% stake owned by Soul City) in Acciona Energy South Africa O&M (Pty) Ltd, an operations and maintenance company, providing services and parts to both Gouda and Sishen.

This acquisition is set to increase Cennergi’s net operating capacity by 117 MW, from 200 MW to approximately 317 MW, representing a material expansion of its operational base. It accelerates the execution of Exxaro’s Sustainable Growth and Impact Strategy, bringing the company closer to its 2030 goal of 1.6 GW managed net renewable energy capacity.

To know more about the acquisition, click here.