Exxaro Secures R1.8bn Renewable Energy Deal Enhancing Its Future Focused Power Generation Portfolio

The timing-linked purchase price will range between R1.7bn and R1.8bn.

Increased renewable energy capacity

Both assets were procured under Bid Window 2 of South Africa’s Renewable Energy Independent Power Producer Procurement Programme. They sell electricity to Eskom under 20-year take-or-pay Power Purchase Agreements (PPAs).

The PPAs run until 2034 (Sishen) and 2035 (Gouda).

Acciona Energía owns 54.9% of Gouda and Sishen, followed by Celenex, a majority-owned subsidiary of Royal Bafokeng Holdings, which holds 25.1%. Soul City Broad-Based Empowerment Company (Soul City) owns 10%, and local Community Trusts own the remaining 10%.

The transaction includes Acciona’s 80% stake (with the remaining 20% stake owned by Soul City) in Acciona Energy South Africa O&M, an operations and maintenance company that provides services and parts to both Gouda and Sishen.

This acquisition is set to increase Cennergi’s net operating capacity by 117 MW, from 200 MW to approximately 317 MW, representing a material expansion of its operational base.

It accelerates the execution of Exxaro’s Sustainable Growth and Impact Strategy, bringing the company closer to its 2030 goal of 1.6 GW managed net renewable energy capacity.

Exxaro CEO Ben Magara said the acquisition forms part of the company’s commitment to ensuring a just energy transition in South Africa.

“This acquisition is yet another positive development in the continued iteration of our commitment to power possibility through a just and inclusive energy transition,” said Magara.

“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,” continued Magara.

Broadening Cennergi’s footprint

The acquisition aims to broaden Cennergi’s footprint across South Africa and enhance earnings through long-term, inflation-linked PPAs with Eskom, backed by the National Treasury.

Leon Groenewald, executive head of energy at Exxaro, said the acquisition brings it closer to achieving its goal of reaching 1.6 GW of capacity by 2030.

“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.

“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.”

The transaction closing date will coincide with the transfer of ownership of the sale equity to Cennergi, which is expected to occur in the first half of 2026, subject to customary approvals for transactions of this nature.