ImpactAlpha, April 4 — Johannesburg-based independent power producer Decentral Energy Managers has raised $12.1 million of equity from Flyt Property Investments and Anuva Investments. Lion’s Head Global Partners provided advisory services with support from USAID’s Power Africa initiative.
Decentral Energy will use the investment to increase its renewable energy generation capacity to 50 megawatts to meet demand from at least 30 small and mid-sized commercial and industrial customers in South Africa. “Customers benefit from substantial energy cost savings, a decreased reliance on the national energy grid, and considerable carbon footprint reductions,” said Decentral Energy’s Luel Culwick.
Decentral Energy developed, owns and operates over 10 megawatts of solar assets, with 500 megawatts of clean energy assets currently under development.
Clean energy could be the answer to South Africa’s energy security challenges. The country’s debt-plagued state utility and poorly maintained power plants can’t keep pace with demand.
A Just Energy Transition Partnership, backed with an initial $8.5 billion from the U.S., U.K., French and German governments and the European Union, seeks to accelerate the country’s transition away from coal by incentivizing clean energy investments.