PIC acquires stakes for two solar projects in South Africa

Public Investment Corporation (PIC), which is a pension management fund in South Africa, has put in ZAR22bn ($1.8bn) for two solar energy developments in the country.

The firm has invested to acquire 20% stakes in Ilangalethu and Xina power projects, reports Bloomberg.

Located in the Northern Cape province, the projects will have a combined generation capacity of 200MW, which is expected to meet the growing energy requirements in the country.

Along with the investment, PIC will offer debt financing to the Ilangalethu project for ZAR600m ($48.4m).

PIC chief executive officer Daniel Matjila was quoted by Bloomberg as saying: "Electricity remains an important contributor to South Africa’s economic development and, for this reason, we believe that investment in the renewable energy sector is critical."

South Africa is dependent on Eskom Holdings for 95% of its power requirements.

At present, however, industries in the country are facing blackouts due to the aging facilities managed by the state-owned utility, reports Reuters.

This prompts South Africa to seek renewable investments as alternate power resource, since the new coal-fuelled facilities to be developed by Eskom will take long to be operational.