The renewable energy sector in South Africa is navigating a complex landscape filled with challenges as it strives for diversification and liberalization. In this evolving environment, Standard Bank is taking significant strides to lead the way in innovative energy solutions. A groundbreaking project has recently achieved financial closure and commenced construction, with Standard Bank serving as the sole mandated lead arranger. The 140MW Ishwati Wind Farm, developed and co-sponsored by Africa Clean Energy Developments (ACED), is backed by shareholders including the African Infrastructure Investment Managers (AIIM) managed IDEAS Fund and Reatile.
This ambitious R4.9 billion (approximately $266.8 million) wind energy initiative is notable for being the first substantial renewable energy project to secure a Generator Power Purchase Agreement (GPPA) with the renewable energy aggregator, NOA. The project reached financial close and began construction in September 2024, with plans to start generating electricity by 2026. NOA Group obtained its trading license on January 31, 2025, allowing it to purchase all renewable energy produced by the Ishwati Wind Farm.
Karel Cornelissen, CEO of NOA Group, highlighted the significance of this milestone, stating, “This marks the first large-scale renewable project in South Africa to reach financial close with an energy trader as the offtaker.” With NOA Trading, the trading arm of NOA Group, now licensed to operate, the company is authorized to acquire electricity from Ishwati and other independent power producers (IPPs), aggregate the energy, and distribute it through the Eskom grid to various end-users across South Africa.
The utility-scale wind farm will consist of 32 wind turbines, each with a capacity of 4.5MW and standing 120 meters tall, with commissioning scheduled for 2026. ACED is overseeing the construction, while Energy Infrastructure Management Services (EIMS Africa) is responsible for asset management. The power generated by the consortium of ACED, EIMS, IDEAS, and Reatile will be sold to NOA under a long-term power purchase agreement, enabling NOA to provide energy to multiple business customers through more flexible arrangements.
Cornelissen elaborated on the logistics, explaining, “In the case of Ishwati, wind power generated in the Western Cape will be wheeled through the Eskom transmission network and then transmitted to end users such as Tronox, MMC, Old Mutual Properties, Netcare, and others.”
Sherrill Byrne, Standard Bank’s Executive for Project Finance, Energy, and Infrastructure Finance, expressed pride in the partnership, stating;
Together with our partners, ACED, EIMS Africa, and Reatile, we are proud to be the sole mandated lead arranger for this pioneering project, which presents a long-term solution in response to the market liberalization in South Africa. NOA is not just facilitating wind or solar energy to end users; it is providing a diverse profile of green electrons by aggregating multiple generators, including wind, solar, and battery projects, and supplying this energy to various end users under more flexible arrangements.
Recognizing the potential of aggregators as a key emerging theme, Standard Bank has intensified its efforts to partner with like-minded organizations to address market needs and foster innovation in energy supply. The bank has observed a significant shift in the market, particularly following the amendments to the Electricity Regulatory Act, which have opened up opportunities for more flexible power generation options through aggregators.
To date, Standard Bank has been mandated for four renewable power aggregators in South Africa, which source renewable energy from various generation assets, including wind and solar, and sell it to multiple off-takers. Additionally, the bank is committed to achieving net-zero carbon emissions from its operations by 2040 and from its portfolio of financed emissions by 2050, in alignment with the Paris Agreement.
James Cumming, CEO of ACED, expressed enthusiasm about the project, stating;
We’re delighted to have closed and commenced construction on this complex and pioneering project – the first trader offtake project at scale. The long-term power purchase agreements we sign, such as that with NOA, are what bring these projects to life. We are grateful for the opportunity to serve NOA, enabling them to support their growing list of energy customers while driving sustainable development and job creation locally and where the renewable energy is utilized. Such is the power of the green electron!
Standard Bank remains committed to empowering its clients on their journey toward a greener future, reinforcing its role as a catalyst for change in the energy sector. This commitment is evident through the bank’s focused approach to banking aggregators and traders, promoting greater flexibility in energy supply.
Vincenzia Leitich, Standard Bank’s Executive for Energy and Infrastructure, emphasized the importance of collaboration, stating;
Banking the first project with an aggregator required a unique partnership approach with a shared vision to ensure appropriate risk allocation and alignment. At the core of this partnership is enhanced value creation and delivery through an innovative aggregated flexible portfolio approach from a power supply and purchase perspective, addressing market needs.
