Etana, GuarantCo Finalize Solar Deal

Key Figures & Findings: South Africa’s Etana Energy has officially reached financial close on its first solar project just four months after a pioneering guarantee framework was put in place. The Du Plessis Dam Solar PV2 project, located outside De Aar in the Northern Cape, is backed by Standard Bank and will deliver new capacity. This deal was made possible by a $100 million payment default guarantee from GuarantCo, part of the Private Infrastructure Development Group (PIDG), and British International Investment (BII). Surabhi Mathur Visser, GuarantCo’s Deputy CEO, hailed the project as a market signal for renewable scale-up.

Statistics & Insights: The Du Plessis Dam Solar PV2 project, co-developed by Mulilo and H1 Holdings, will generate 75MWac of clean power and marks the first transaction under the GuarantCo-BII risk guarantee framework launched in December 2024. Construction is scheduled to begin by the end of April 2025, providing Etana with the power needed to expand its energy aggregator model and offer secure, long-term supply to commercial clients.

Future Implications:  If successfully replicated, the guarantee-backed model could enable Etana to scale up to multibillion-rand clean energy deals across South Africa by 2026, addressing investor concerns over payment risk and enabling faster renewable deployment. This approach may also unlock project financing for IPPs operating in under-electrified and economically constrained areas, aligning with South Africa’s energy transition and PIDG’s 2030 goals.

Source: GuarantCo