JOHANNESBURG, South Africa
In a bold step towards reshaping South Africa’s energy future, Absa Corporate and Investment Banking (CIB) has committed R1.6 billion in financing to Phase 2 of the FE Overberg Wind Project—poised to become the country’s largest privately developed wind farm.
The investment will drive construction, operations, and maintenance of the second phase of the 380-megawatt (MW) wind farm being developed by Independent Power Producer, Red Rocket Holdings. Upon completion, the project will supply 150MW of clean energy to Discovery Green (DG), a licensed electricity trader and a subsidiary of Discovery Limited.
With a total capital raise of R3.8 billion for Phase 2 alone, the wind project underscores a significant shift towards renewable, privately financed power in South Africa’s grid. The energy produced will be distributed under a 25-year Power Purchase Agreement (PPA) between FE Overberg and Discovery Green, allowing DG’s customers to benefit from competitively priced, 100% renewable electricity.
Absa’s strategic involvement spans multiple roles including Joint Mandated Lead Arranger, Joint Hedge Provider, Joint Senior Lender, and Guarantee Issuing Bank. The deal demonstrates Absa CIB’s leadership in climate-aligned infrastructure financing and its capacity to execute complex wheeling transactions at scale.
“This transaction reflects the growing maturity of South Africa’s renewable energy market and the critical role of private sector-led wheeling solutions in unlocking new generation capacity,” said Colin King, Resource and Project Finance Transactor at Absa CIB. “As more commercial and industrial players decarbonise their operations, the ability to structure scalable, bankable PPAs will be fundamental to accelerating a just energy transition.”
At the heart of the project lies a multi-party collaboration. Red Rocket, a long-standing renewable energy developer with a six-year partnership history with Absa, leads the development. DG steps in as a groundbreaking off-taker, enabling a diverse set of businesses to access green energy through a newly charted wheeling model.
“This landmark private power multi-off-taker deal is a significant achievement in South Africa’s evolving energy sector,” said Matteo Brambilla, CEO of Red Rocket. “It highlights the strength of innovative financing and independent power production in delivering renewable energy at scale. The ability to structure and finalise a multi-off-taker transaction of this magnitude is a game-changer.”
The project also marks a milestone for Discovery Green. “The renewable energy market is still in its infancy, and delivering a project of this scale and complexity required us to chart new ground,” said Andre Nepgen, Head of Discovery Green. “Concluding our first major renewable energy project sets a strong precedent for what’s possible.”
This financing aligns with Absa’s broader sustainability agenda. Having pledged R100 billion in sustainable finance by 2025, the bank surpassed this goal in 2024—mobilising over R121.1 billion, with R115.3 billion delivered through Absa CIB, including R35.2 billion last year alone.
As South Africa continues to face energy supply challenges, this project demonstrates the potential of private-led solutions in boosting energy security while driving climate resilience. The partnership also signals a new direction in renewable energy development—one where collaboration, innovation, and investment align to power the nation’s future.
