South Africa’s mining giant, Exxaro Resources, has signed binding agreements to acquire majority stakes in two fully operational renewable energy plants from Acciona Energía in a transaction valued at between 1.7 billion rand and 1.8 billion rand ($106 million).
The acquisition will be carried out through Exxaro’s renewable energy subsidiary, Cennergi.
It covers the 138-megawatt Gouda Wind Farm in the Western Cape and the 75-megawatt Sishen Solar Facility in the Northern Cape.
The deal also includes the company responsible for the operations and maintenance of both assets.
According to the company, the deal allows Cennergi to manage the two renewable assets directly while integrating technical expertise and operational systems into its platform
“This acquisition adds substantial growth to our portfolio of operating assets, enhances geographical diversification, and marks a significant milestone in our strategic journey to scale Cennergi,” said Leon Groenewald, executive head of energy at Exxaro.
The expansion is expected to grow Cennergi’s operating asset base. It also deepens its footprint across South Africa’s renewable energy market.
Projects tied to long-term Eskom supply contracts
The two power plants were developed under Bid Window 2 of South Africa’s Renewable Energy Independent Power Producer Procurement Programme.
The company noted that they supply electricity to state utility Eskom under 20-year take-or-pay power purchase agreements. The Sishen Solar contract runs until 2034, while the Gouda Wind agreement expires in 2035.
“Acquiring the O&M company allows us to provide asset management and O&M services to two additional utility-scale renewable energy assets, while also bringing in skilled staff, advanced systems and expertise to further strengthen Cennergi’s position as a leading asset management and O&M provider in South Africa,” Groenewald said.
Acciona Energía currently holds 54.9% of both projects. Celenex, a subsidiary of Royal Bafokeng Holdings, owns 25.1%. Soul City Broad-Based Empowerment Company holds 10%, while community trusts own the remaining 10%.
In addition, the transaction includes Cennergi’s acquisition of Acciona’s 80% stake in Acciona Energy South Africa O&M.
Soul City holds the remaining 20% interest. The unit is responsible for operations and maintenance at both the Gouda wind farm and the Sishen solar facility.
Following completion, Cennergi’s net operating renewable capacity is projected to rise by 117 megawatts, increasing total capacity from 200 megawatts to about 317 megawatts.
The deal is scheduled for completion in the first half of 2026, subject to regulatory approvals and standard closing conditions.
Exarro’s CEO’s reaction to the acquisition
On his part, the Chief Executive of Exarro, Ben Magara,m described the transaction as part of the group’s long-term energy transition strategy.
He said Exxaro is expanding beyond its coal base while growing its energy solutions and transition metals businesses
The acquisition aligns with Exxaro’s Sustainable Growth and Impact Strategy, which targets 1.6 gigawatts of managed net renewable energy capacity by 2030.
“This acquisition is yet another positive development in the continued iteration of our commitment to power possibility through a just and inclusive energy transition.
“It strengthens Exxaro’s position as a diversified natural resources champion, anchored by a strong coal base, a growing energy solutions business, as well as acquisitive growth in energy transition metals,” he said
According to him, the deal is also expected to improve long-term earnings through inflation-linked Eskom contracts that are backed by the National Treasury.
Renewable expansion builds on earlier solar and wind projects
The latest acquisition builds on Exxaro’s recent push into renewable energy. In 2023, the company unveiled the 68-megawatt Lephalale Solar Project. The facility supplies power to its Grootegeluk coal mining complex.
Earlier in 2025, Cennergi concluded a 20-year power purchase agreement with G7 Renewable Energies. The agreement will deliver 140 megawatts of wind power to Northam Platinum.
South Africa continues to rely heavily on private renewable energy developers to expand generation capacity which is driven by persistent supply gaps on the national grid.
The expansion comes against the backdrop of ongoing constraints at Eskom. The utility continues to battle breakdowns across its aging coal-fired fleet.
While load shedding has eased compared with previous years, supply risks remain.
Exxaro is one of the largest coal suppliers to Eskom.
