Inspired Evolution has committed R146m ($20m) to South African wind farm, Red Cap Kouga Wind Farm, for a 26% stake.
The private equity investor has backed the farm through its Evolution One Fund, and was drawn to the investment because of the expertise of Red Cap’s development team and the strength of the project advisors. Inspired Evolution also has confidence in the company’s risk mitigation technology and its reduction of execution risk.
“[These strengths] position them well for success in the future and we are very pleased to be a part of it,” said Christopher Clarke, Inspired Evolution’s director.
The deal is part financed by the United Nations Environment Program’s Seed Capital Assistance Facility. The private equity investor is also negotiating senior debt facilities with its DFI and sovereign investors, in addition to local commercial debt lead arrangements, to bolster the investment.
Founded in 2009, South African Red Cap Investments focuses on energy consulting, investment and project development. It is developing three wind sites in the Kouga region of the Eastern Cape, dubbed the Red Cap Kouga Wind Farm, with a total potential of 300MW of wind power.