South African renewable energy developer Red Rocket raised $160 million in funding from management and investment partners to help the business expand across the region.
The Cape Town-based company has built hydro, solar and wind projects. It reached financial close on 364 megawatts of wind turbines in February.
“While the bulk of Red Rocket’s pipeline is in South Africa, the firm also plans to expand into other markets, mostly southern Africa,” Chief Executive Officer Matteo Brambilla said in an interview. “The new investment partners will assist Red Rocket in building out utility-scale power projects on the continent.”
South Africa’s Eskom Holdings SOC Ltd. is struggling to meet electricity demand, resulting in record outages that crimp the economy.
The government has turned to independent power producers to help build capacity in order to stabilize the power grid, though the program has faced delays.
Red Rocket raised the capital from main backers Bill Kilgore Investments, a vehicle run by management shareholders, as well as climate investor Inspired Evolution. FMO, a Dutch entrepreneurial development bank and French infrastructure and energy investor STOA, have joined as partners.
