Norwegian start-up Magnora has closed two agreements with an unnamed South African developer that will boost its renewable portfolio in the country to close to 1GW in potential solar and wind projects.

Magnora will fully buy a 775MW greenfield renewables portfolio from the company, while at the same time increasing its stake in the Vindr joint venture to 50% (from 25% previously). The joint venture with the same unnamed company holds another 225MW in South African wind and solar projects.

“We believe these two investments have an excellent value-creating potential for our shareholders, and are delighted to land them both,” says Magnora executive chairman Torstein Sanness.

Sannes added that last year’s decision to deregulate the South African electricity market has led to several positive developments that ease off-take from renewable energy plants.

Vindr group is a project developer focusing on greenfield development, in which Magnora had acquired a 25% ownership share in March 2020.

“With the financial and operational backing from Magnora, Vindr group’s intention is to develop the pipeline of projects in South Africa to ready-to-bid/build, and also continue to add in new projects to its portfolio,” Magnora chief executive Erik Sneve said.

“The team merged in from South Africa is highly experienced and understand what it takes to succeed with African greenfield renewables projects.”

Magnora is active in wind and solar power in Norway, Sweden and South Africa. The company in January had said it would bid into upcoming offshore wind leasing rounds in Scotland and Norway, also with an unnamed partner.

Magnora was formed after oil rig designer Sevan Marine sold its business to contractor Sembcorp.

Wind

Magnora secures huge South African wind and solar development pipeline