The Climate Investment Fund has announced it’s making a follow-on investment in Pele Green Energy, a leading South African renewable energy developer, to finance projects that will prevent an estimated 1.9 million tons of carbon emissions annually. The capital injection comes as South Africa intensifies efforts to diversify its energy mix amid ongoing power challenges.
In partnership with Nedbank, one of South Africa’s premier financial institutions, the Norfund-managed Climate Investment Fund will deploy a total of R575 million (approximately 350 million Norwegian kroner) to expand Pele’s renewable energy portfolio across the country.
“We see this investment as a significant contribution to meeting South Africa’s growing energy needs while avoiding large-scale emissions,” said Bjørnar Baugerud, head of the Climate Investment Fund at Norfund, highlighting the dual economic and environmental benefits of the initiative.
Founded in 2009 by five young entrepreneurs, Pele Green Energy has established itself as a prominent Black Economic Empowerment (BEE) infrastructure company in South Africa’s energy sector. The company’s integrated business model spans the development, ownership, construction, and operations of renewable energy assets.
Pele’s current operational capacity stands at 980 MW, with an additional 670 MW under construction and a substantial development pipeline exceeding 5 GW—figures that position the company as a major player in South Africa’s energy transition.
This latest investment builds upon Norfund’s initial 400 million NOK (or $37 million at current rates) commitment to Pele in 2023, which helped finance the construction of several large-scale solar and wind power plants. The fresh capital will support Pele’s expansion strategy across multiple segments, including commercial and industrial direct energy supply, battery storage systems, and participation in government tenders for utility-scale renewable projects.
Gqi Raoleka, CEO of Pele Energy Group, emphasized the transformative nature of the transaction: “This transaction is a game-changer for the Pele Energy Group and the broader renewable energy sector. Having Nedbank and Norfund as strategic partners in our capital structure reflects their strong belief in our vision and capabilities.”
The investment comes at a critical juncture for South Africa’s energy landscape, with renewable energy increasingly viewed as the most viable solution to the country’s persistent electricity supply challenges.
“This backing enables us to accelerate project development, scale impact, secure new opportunities, and drive sustainable energy solutions that will have a lasting impact on Africa’s energy future,” Raoleka added, pointing to the broader continental implications of Pele’s growth trajectory.
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