South African billionaire Patrice Motsepe has revealed plans to boost renewable power generation on the continent sevenfold through his energy company African Rainbow Energy and Power (AREP).
The plans are part of Motsepe’s concerted effort to become one of Africa’s leading clean energy providers.
The news comes nearly a year after the Motsepe-owned energy firm acquired a strategic 40-percent stake in SOLA Group, a vertically integrated provider of renewable energy solutions, as part of a move to strengthen and expand its presence in the sustainable energy industry.
SOLA Group is presently working on mega projects in South Africa, including two 100-megawatt solar stations, to reduce red tape and accelerate private generation by not requiring a license.
AREP’s decision to increase renewable power generation in Africa aligns with its aim to add up to 5,000 megawatts of assets. It has already invested in more than 700 megawatts and plans an additional 2,000 megawatts with partners by the end of the second quarter of next year.
AREP CEO Brian Dames, who joined the company in 2014, commented on its plans, stating: “We’ve always thought we should build up scale and create a significant energy company with involvement in projects realized through South African government auctions to buy power as well as generate energy for commercial use.”
AREP is an African energy company focused on clean energy solutions including renewables, hydro, gas, and complementary transmission investments.
Motsepe established the firm in 2012 to provide affordable energy solutions in South Africa and throughout Africa through the utilization of modern and renewable energy technologies.
Today, AREP has mostly solar assets, with one-third generated by wind and a small portion by biomass.
In an effort to deepen its portfolio, AREP formed a joint venture in 2021 with Absa Group Ltd., which together made up R6.5 billion ($405 million) of renewable assets, forming a fund known as African Rainbow Energy.
