Standard Bank backs SA’s ‘largest single-phase solar project’

Standard Bank has partnered with Anthem to finance the Notsi renewable energy project, a 475MW solar photovoltaic facility in the Free State that is expected to be South Africa’s largest single-phase solar project.

The bank confirmed this week that it has been appointed co-mandated lead arranger, coordinating lead arranger, and will also act as facility agent, account bank, guarantee-issuing bank and hedging bank.

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Standard Bank’s executive vice president of energy and infrastructure Vincenzia Leitich said the project highlights the bank’s ability to structure complex energy deals.

“It’s scale and complexity speak to our capacity to deliver bespoke solutions… The Notsi project meets both goals and we are proud to have played a pivotal role in its finalisation,” she said.

Anthem, one of South Africa’s largest independent power producers, has more than 2GW of wind, solar and hydro projects in operation or under construction.

Once operational, the project is expected to generate approximately 1.5 million megawatt-hours of clean electricity annually, enough to supply around 140 000 households.

The electricity will primarily be sold to commercial and industrial users through long-term power off-take agreements with Discovery Green and NOA Group.

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“We are thrilled to continue to partner with Standard Bank. The Notsi project supports the growing aggregator market, enables corporate decarbonisation and supports South Africa’s transition to lower carbon energy consumption,” said Mike Wickins, chief commercial officer of Anthem.

The development is aligned with South Africa’s ongoing electricity market reforms, particularly efforts to increase competition, support liberalisation and expand private sector participation through aggregator-led models.

Phenyo Selinda is a Moneyweb Intern*