Magnora\u00a0is increasing its focus in the\u00a0South African solar and wind market\u00a0by acquiring 92% of the renewable project development company\u00a0African Green Ventures (AGV). The remaining 8% will be owned by AGV management. Simultaneously, Magnora is selling all its shares in Vindr AS to its founders and discontinues the development of Vindr Group with Vindr AS.<\/p>\n
AGV is a project developer within large scale solar PV and onshore wind and has a good track record of sourcing renewable projects on behalf of various clients. AGV holds project rights of more than 800 MW wind and solar PV projects after recently signing land lease option agreements in prime locations to be added to Magnora’s existing portfolio of 850 MW. The acquisition will subsequently bring Magnora’s South African portfolio to a total of approx. 1.7 GW. AGV’s goal is to develop a portfolio of more than 2 GW solar and wind projects in South Africa while increasing cost efficiency and de-risking through economies of scale.<\/p>\n
Operational synergies are expected as AGV already has been responsible for some of Magnora’s development activities in South Africa. As part of the transaction, Peter Nygren, EVP Strategies in Magnora, will step down from his current position and become an active owner in AGV, pursuing the opportunities in South Africa. He will continue in Magnora’s team of corporate advisors and in his role as active owner in Helios Nordic Energy AB.<\/p>\n
‘We see great opportunities in South Africa, both in the short- and long term, and we expect increased power consumption due to economic development and green electrification. AGV’s approach to sourcing attractive projects is complementary to our methods and capabilities, and we look forward to having them as a part of the Magnora team’<\/em>\u00a0says Erik Sneve, CEO of Magnora.<\/p>\n Currently, more than 80% of the energy production in South Africa is from coal fueled power plants and more than 10,000 MW of the domestic coal energy capacity is expected to be decommissioned by 2030, increasing to 35,000 MW by 2050. This makes South Africa an attractive region for solar and wind development together with storage technologies. According to the Integrated Resource Plan from 2019, new capacity to be added between 2019 and 2030 includes 14,400 MW onshore wind and 6,000 MW solar PV, which might increase further to replace decommissioned coal power plants.<\/p>\n