juwi Renewable Energies has concluded a second investment transaction with Reatile Renewables, who have taken a 43% equity stake in juwi’s solar PV Operations & Maintenance business.
The agreement follows the conclusion of a previous deal between juwi Renewable Energies and Reatile Renewables earlier this year, in which Reatile took up a 20% shareholding in one of juwi’s solar PV EPC companies.
Simphiwe Mehlomakulu, Chairman of Reatile Group says that the deal deepens Reatile’s investment and involvement in the renewable energy sector in South Africa, and makes for a very attractive service offering in the O&M sector: “Through the O&M transaction we intend to operate and maintain projects, not only for juwi, but also for other players in the market place. Reatile has taken a significant equity stake in juwi O&M, which, together with an existing 8% community stake, results in juwi O&M being a 51% black-owned company.
“The new structure represents all the aspects of the social compact in South Africa, as well as the competitive pricing and technology advances that juwi is already known for.”
Greg Austin, Managing Director of juwi, says that the deal bodes well for future growth in the renewables sector: “We are pleased that Reatile has taken up a substantial stake in our O&M subsidiary which, during 2020, will increase its South African market share significantly.
"Operations and maintenance of renewable energy assets is a critical component of ensuring reliable delivery of clean energy and remains a powerful avenue for sustainable job creation in often remote areas."
“This investment and the earlier EPC deal sets the stage for a deeper relationship with Reatile, in terms of their participation in our projects in South Africa and elsewhere on the continent," Austin added.