Standard Bank closes R4.9 bn game changer deal on industry first 140MW aggregator wind power project

A first of a kind project has reached financial close and entered construction with Standard Bank as sole mandated lead arranger. The 140MW Ishwati Wind Farm was led, co-sponsored and developed by Africa Clean Energy Developments (ACED), with the African Infrastructure Investment Managers (“AIIM”) managed IDEAS Fund and Reatile as shareholders. The R4.9 billion wind project, was the first sizeable renewable energy project to sign a GPPA (Generator Power Purchase Agreement) with renewable energy aggregator, NOA. Ishwati reached close and started construction in September 2024 and will start generating electricity in 2026. NOA Group received its trading licence on the 31st of January 2025, enabling the business to buy all the renewable energy generated by the Ishwati Wind Farm.

“This marks the first large-scale renewable project in South Africa to reach financial close with an energy trader as the offtaker,” said Karel Cornelissen, CEO of NOA Group. With NOA Trading, the trading arm of NOA Group, now holding its trading licence, we are authorised to purchase electricity from Ishwati and other third-party IPPs, aggregate it, and wheel it through the Eskom grid to geographically dispersed offtakers across the South African market.

The utility scale wind farm comprises 32 (4.5MW) wind turbines, each standing 120 metres high, and is set for commissioning in 2026. ACED is managing construction with Energy Infrastructure Management Services (EIMS Africa) providing asset management. The power generated by the ACED-EIMS-IDEAS-Reatile generation consortium will be sold to NOA under a long-term power purchase agreement, enabling NOA to supply multiple business customers through shorter, more flexible arrangements.

“In the case of Ishwati, wind power generated in the Western Cape, will be wheeled through the Eskom transmission network and then transmitted to end users such as Tronox, MMC, Old Mutual Properties, Netcare and others,” Karel Cornelissen went on to say.

“Together with our partners, ACED, EIMS Africa and Reatile, we are proud to be the sole mandated lead arranger to this first of a kind project, presenting a long-term solution and response to the market liberalisation in SA. NOA is facilitating not wind or solar energy to end users but rather a profile of green electrons achieved by aggregating multiple generators (wind, solar and battery projects) and providing this to multiple end users under more flexible arrangements” says Standard Bank Executive: Project Finance, Energy and Infrastructure Finance Sherrill Byrne.

Two years ago, Standard Bank recognised aggregators as a key emerging theme, prompting us to intensify our efforts in sourcing like-minded partners in addressing market needs towards innovation in supplying power to the market.

Standard Bank has seen a big shift in the market, most notably the change in reform in line with the amendments of the Electricity Regulatory Act. This has provided room for more flexible power generation options through aggregators.

Thus far, Standard Bank has been mandated for four renewable power aggregators in South Africa. These aggregators source renewable energy from various generation assets, such as wind and solar, and sell it to multiple off-takers. Additionally, Standard Bank aims to achieve net zero carbon emissions from its own operations by 2040 and from its portfolio of financed emissions by 2050, aligned with the Paris Agreement.

“We’re delighted to have closed and commenced construction on this complex and pioneering project – the first trader offtake project at scale. It’s the long term PPAs we sign, such as that with NOA here, that bring these projects to life. We are grateful for the opportunity to serve NOA, so that they can in turn do so for their growing list of energy customers, all the while driving sustainable development and job creation – at the site locally, and where the renewable energy is used. Such is the power of the green electron!” said James Cumming, CEO of ACED.

Standard Bank remains dedicated to empowering clients in their journey towards a greener future, reinforcing the bank's role as a catalyst for change in the energy sector which is demonstrated through our dedicated sector focus on banking aggregators and traders towards more flexibility.

“Banking the first project with an aggregator required a unique partnership approach with a joint vision to ensure appropriate risk allocation and alignment. At the core of the partnership is enhanced value creation and delivery through an innovative aggregated flexible portfolio approach from a power supply and purchase perspective addressing market needs,” says Standard Bank Executive: Energy and Infrastructure Vincenzia Leitich.