South African billionaire Patrice Motsepe is set to take over Africa’s renewable energy market through African Rainbow Energy and Power (AREP).
To strategically position AREP, in 2020, Patrice bought a 40% share in SOLA Group, an integrated provider of renewable energy solutions.
This made him the largest stakeholder, thus creating an easy entry for his company into the sector without needing a license.
In a statement by the company, “As South Africa transitions its energy usage to cleaner sources, there is a dire need for new energy generation solutions, collaboration, technology and investment into renewable energy”.
AREP – Renewable energy
AREP’s goal is to promote renewable energy on the continent while also boosting and developing its position in the sustainable energy market. This, according to the firm, is in line with its target of acquiring assets totalling 5,000 megawatts.
The company already has an investment in roughly 700 megawatts. It also has the intention to finance 2,000 megawatts in collaboration with partners by the end of the second quarter of 2023.
Brian Dames, the CEO of AREP, said, “We’ve always thought we should build up scale and create a significant energy company with involvement in projects realised through South African government auctions to buy power as well as generate energy for commercial use”.
According to AREP’s CEO, the firm also has solar assets, some of which are generated by wind and a little amount by biomass.
To diversify, AREP launched a joint venture with Absa Group Limited in 2021. They raised R6.5 billion ($405 million) for renewable assets.
African Rainbow Energy and Power (AREP)
AREP is an African energy firm mainly interested in renewable energy, hydropower, natural gas, and complementing transmission assets.
The company was established in 2012 by Patrice Motsepe, a South African billionaire, with the goal of providing inexpensive energy solutions to South Africans and the continent via the use of renewable energy technology.
Today, AREP’s assets are majorly solar, with a third coming from wind and biomass contributing little to it.
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