Exxaro Resources Limited, through its subsidiary Cennergi, is set to acquire majority interests in two renewable energy assets from Acciona Energía for R1.7 billion to R1.8 billion, marking a significant expansion of its operational capacity and alignment with sustainability goals.

Target Information

Exxaro Resources Limited, through its wholly owned subsidiary Cennergi, has entered into binding agreements with Acciona Energía to acquire majority stakes in two fully operational renewable energy assets: the 138 MW Gouda Wind Farm located in the Western Cape and the 75 MW Sishen Solar Facility in the Northern Cape. In addition, Exxaro will also acquire the company responsible for the operations and maintenance (O&M) of both facilities. The purchase price for this acquisition is expected to range between R1.7 billion and R1.8 billion.

Both energy assets were procured under Bid Window 2 of South Africa's Renewable Energy Independent Power Producer Procurement Programme and are contracted to sell electricity to Eskom through 20-year take-or-pay Power Purchase Agreements (PPAs). These agreements are set to expire in 2034 for Sishen and 2035 for Gouda, ensuring a stable revenue stream for the foreseeable future.

Industry Overview in South Africa

The renewable energy sector in South Africa has seen significant growth in recent years, fueled by the country's commitment to transition towards cleaner energy sources. Initiatives such as the Renewable Energy Independen