AP Moller Capital to buy Mainstream Renewable Power South Africa

Global institutional fund manager AP Moller Capital, through its Emerging Markets Infrastructure Fund II, has reached an agreement to acquire Mainstream Renewable Power South Africa.

The transaction, conducted via a special purpose vehicle, will see the fund taking ownership of the South African renewable energy developer and independent power producer.

Mainstream Renewable Power South Africa operates 148MW of capacity that is either in operation or under construction.

The company also has 351MW of projects ready for construction and maintains a development pipeline of approximately 11.6GW, including solar, wind and battery storage projects.

Founded in 2009, Mainstream Renewable Power South Africa has a notable presence in the country’s renewable energy sector.

It operates a fully integrated business with in-house functions that cover development, project delivery, asset management, energy trading, and operations and maintenance.

The company serves a range of corporate clients in South Africa, including partnerships with Sasol and Air Liquide.

Mainstream Renewable Power CEO Julie Berg said: “We are pleased that Mainstream South Africa will become part of EMIF II’s portfolio, with AP Moller Capital supporting the business in its next phase of growth.

“As Mainstream Renewable Power focuses on fewer markets, the South African business will benefit from an experienced infrastructure investor with the resources and expertise to support its development.”

AP Moller Capital said the acquisition aligns with its strategy to invest in infrastructure assets that support economic development and the energy transition across emerging markets.

The firm has previously invested in various energy businesses across Africa and Asia, including Cabeólica in Cabo Verde; the East Africa Infrastructure Platform in Kenya; Eranove in West Africa; Impala Energy in Nigeria; Lumika Renewables in South Africa; and Verdant Energy in South East Asia.

It has also announced a pending investment in Rays Power Infra in India.

AP Moller Capital partner Jens Thomassen said: “Mainstream South Africa is a high-quality business with an experienced management team, a proven track record and one of the country’s largest renewable energy development pipelines.

“As power demand and the need for new generation capacity continue to grow, this investment strengthens our energy transition strategy and supports our ambition to build a leading independent power producer in South Africa.”

Completion of the transaction is contingent upon regulatory and other third-party approvals.

“AP Moller Capital to buy Mainstream Renewable Power South Africa” was originally created and published by Power Technology, a GlobalData owned brand.