THE COMPANY
Crede Power (the “Company”) was founded in 2015 as an independent power utility company. The main activities of the Company are the ownership of operating assets and development of new generating capacity. The company seeks a capital investment of circa US$100 million to enable it to implement its current strategy which is premised on the following: Creation of operating core assets through the acquisition operating power projects.
Beyond the US$100 million required in the initial phase, Crede will have to mobilise at least US$300 million to pursue power transactions at various development phases across sub-Saharan Africa and for participation in the South Africa baseload programme, which commenced in 2015. The Company is working towards owning and operating at least 1000 MW of power within approximately two years. Crede seeks to own one of the largest diversified renewable energy portfolios in South Africa.
Crede was born out of the strategic vision to consolidate various shareholder entities under a single listed utility company.
THE OPPORTUNITY
The South African programme has generated 92 new renewable energy IPPs across four bidding rounds, totalling R193 billion in investments since 2013. The 92 successful projects incorporate more than 100 different shareholder entities.
SOUTH AFRICA
| ON-SHORE WIND | 2656MW |
| SOLAR PV | 1899MW |
| CSP | 600MW |
| LANDFILL/BIOMASS/HYDRO/BIAGAS | 79MW |
SOUTH AFRICA BASELOAD IPP PROCUREMENT PROGRAMME (commenced in 2015)
| COAL | 2500MW |
| IMPORTED HYDRO | 2690MW |
| GAS | 3126MW |
I think the cost of energy will come down when we make this transition to renewable energy.
Al Gore
SUB-SAHARAN AFRICA
In sub-Saharan Africa (excluding South Africa), installed capacity during the 2013-2014 period and projects near construction completion:
KENYA
| ON-SHORE WIND | 371MW |
| BIO-CHP | 18MW |
| GEOTHERMAL | 62MW |
RWANDA
| BIOGAS | 25MW |
TANZANIA
| ON-SHORE WIND | 50MW |
As at the end of October 2014, 21 specific projects are in pre-construction development involving international sponsors or funded, totalling 4.2GW of capacity
I think that the world is in the middle of a huge transition that we have to make to renewable energy. We have to transition away from fossil fuels very, very quickly.
Josh Fox
SERVICES
Advisory services include:
Capital raising
Bid preparation
Financial modelling
Structuring
Due diligence
Post-investment monitoring
THE FUND
The Fund’s objective is to buy out (secondary) equity stakes of operating renewable energy projects commissioned under the SA Renewable Energy Independent Power Producer Procurement Programme (“REIPPPP”).
INVESTMENT POLICY
The key principle of the Fund’s investment policy is to provide investors with strong investment returns. In implementing its investment policy, the Manager will contemplate available operating and near-operating renewable energy opportunities and future undertakings that will yield satisfactory returns at acceptable risk levels and, when making investments, will seek to achieve a reasonable level of diversification across a spread of renewable energy assets. The Fund’s investment criteria include:
- The Fund will focus on renewable energy investments, which provide a stable, predictable and risk income stream, with opportunities to enhance value through active restructuring of the overall project capital structure.
- The Fund will only invest in operating renewable energy assets commissioned under the REIPPP programme.
- The Fund will invest in renewable energy assets that offer a contractual inflation pass-through mechanism.
- Renewable energy assets that enjoy highly inelastic demand profiles.
- REIPPPP assets will provide investors with attractive returns with relatively low volatility.
45 years of combined experience in various areas within the power sector
THE TEAM
Crede Power seeks to leverage more than 45 years of combined experience in various areas within the power sector, such as transaction advisory, investment management, capital raising, early-stage project development, project finance and structuring. In this regard, the team has collective advisory, investment management, project finance, structuring, early-stage project development that is in excess of 4000MW, covering various technologies such as On-shore Wind, Solar PV, CSP, Gas and Coal projects.
OUR LOGO – THE ELEPHANT
Many African cultures revere the African Elephant as a symbol of strength and power. The Elephant is also praised for its size, longevity, stamina, mental faculties, cooperative spirit, and loyalty. These traits represent what we value and what we need to be to make our vision a reality.
CONTACT US
4 Fricker Road, Illovo, Sandton, 2196