GuarantCo, part of the Private Infrastructure Development Group (PIDG), and British International Investment (BII), a U.K. development finance institution and impact investor, have penned a groundbreaking deal with Etana Energy, a South African energy trading company, which could unlock $500 million of new renewable power development.
GuarantCo and BII will provide $100 million ($50 million each) of default guarantee finance for Etana in what is being called South Africa’s largest “energy wheeling framework” transaction. This facility will enable about 500 megawatts to be added to the grid by several wind and solar independent power producers (IPPs) throughout the next few years, providing a major boost to South Africa’s green-energy transition and underlining the United Kingdom’s support for the country’s Just Energy Transition Partnership.
Recent regulatory changes in South Africa have opened up the opportunity for private power producers to sell electric
