In a significant boost to South Africa’s renewable energy sector, European investors have committed $44 million to advance sustainable energy projects in the region.
The investment, led by Sweden’s development finance institution Swedfund and Denmark’s Investment Fund for Developing Countries (IFU), will support the expansion of Johannesburg-based independent power producer, Sturdee Energy.
The funds aim to accelerate renewable energy development across Africa, with a primary focus on South Africa, according to a recent report.
Sturdee Energy specializes in developing, owning, and operating clean energy projects, supplying power to government utilities, corporations, and industrial clients.
According to sources, the company operates 31 MW of solar power in Namibia and Botswana and is constructing 20 MW of solar projects in South Africa. It also has a robust pipeline of over 200 MW of renewable energy projects across four countries, set to reach financial close soon.
In October, Sturdee Energy reached a key milestone by achieving financial close on two 10-MW ground-mounted, grid-tied solar parks in South Africa.
The Dwaalboom Solar Park in Limpopo and the Slurry Solar Park in North West Province will supply renewable energy to PPC Cement under a 20-year power purchase agreement.
Construction of these projects is expected to be completed by late 2025.
The investment underscores Europe’s growing commitment to supporting sustainable energy initiatives in Africa. Swedfund and IFU have highlighted the importance of these projects not only for reducing greenhouse gas emissions but also for fostering economic growth and energy security in the region.
Sturdee Energy’s efforts align with South Africa’s broader goals to transition toward a greener energy mix, reduce dependency on fossil fuels, and meet its climate commitments. By leveraging European funding and expertise, the company is poised to play a pivotal role in reshaping Southern Africa’s energy landscape.
This $44 million equity injection marks a critical step in advancing clean energy infrastructure and promoting sustainable development in one of Africa’s most dynamic regions.
