Red Cap Energy – Kouga Wind Farm

Red Cap Energy – Kouga Wind Farm
Red Cap Energy – Kouga Wind Farm
Red Cap Energy – Kouga Wind Farm
Red Cap Energy – Kouga Wind Farm
Red Cap Energy – Kouga Wind Farm

TRANSACTION OVERVIEW

Hulisani acquired the entire issued share capital of Red-Cap Investment and Eurocape Renewables and they in turn collectively hold a 6,67% interest in Kouga Wind Farm.

BACKGROUND

• Kouga Wind Farm is located at Oyster Bay in the Eastern Cape;

• Commercial operations of the R2 billion wind farm officially commenced on 17 March 2015; and

• The Kouga Wind Farm comprises an 80MW plant consisting of 32 x 2.5 MW wind turbines which were part of the first round of REIPPP.

OPERATIONS AND MAINTENANCE

• The Kouga Wind Farm has a 20-year Power Purchase Agreement to supply electricity to Eskom, of which 18 years remain;

• Kouga is a grid-connected plant;

• The Kouga Wind Farm adds annually approximately 300 million KWh of clean electricity to the grid, enough to supply approximately 50 000 average South African households;

• We are represented on the Board and working closely with the management team; and

• We have gained additional experience in the operations of a wind farm and uniquely South African or new issues with wind farms.

PERFORMANCE

• After initial issues with equipment, we expect to be resolved by Q3 2018 through remedial works, Kouga performance is expected to further improve.