Jaguar New Energies Secures $10 Million from responsAbility to Provide Solar Power to Businesses in South Africa

Jaguar New Energies (JNE) has received $10 million from responsAbility Investments AG to finance a portfolio of solar installations to commercial and industrial (C&I) off-takers in South Africa implemented by New Southern Energy. The funding consists of a senior and junior debt facility to help catalyze the scaling of JNE’s C&I solar business.

The individual solar energy projects developed by JNE – on roofs or further afield – means that businesses will be able to secure inexpensive and more reliable electricity needed for business operations. This is as the national grid operator continues to experience severe issues in providing South African businesses with affordable and reliable electricity. JNE, meanwhile, is solving a critical problem for businesses in South Africa.

Now, in part thanks to eased regulations, JNE customers across South Africa can generate an average of 30 per cent of the energy they require from their solar resources. South Africa recently relaxed its stringent permit rules on solar installations generating over 1 MW to now only requiring licences for projects over 100 MW. This has allowed the commercial and industrial solar market to flourish, given that barriers such as costly and lengthy administrative procedures have been removed.

Paulo Bello, MD ForestEffect Fund (shareholder of JNE) said, “We are delighted to have responsAbility as a debt provider to JNE for the expansion of a portfolio of solar energy projects across South Africa. The funding secured will provide needed support to build the over 20MW of renewable energy capacity to various offtakers.”

Peter Page, Investment Officer at responsAbility said, “We are very pleased to announce our collaboration with JNE and scaling the company’s business in providing a cost-effective and reliable source of power to companies in South Africa. The transaction further deepens responsAbility’ s commitment and expertise in providing climate finance to renewable energy projects across South Africa.”

David Masureik, CEO New Southern Energy said, “We are excited alongside Jaguar New Energies to be contributing to the uptake of the PPA business model for C&I clients in South Africa. NSE has been at the forefront of the just energy transition and we are grateful for the partnership with responsAbility.”