Advancing Africa’s green energy transition

Greencoat Renewables, a leading investor in European renewable energy infrastructure, has unveiled plans for a secondary listing on the Johannesburg Stock Exchange. The company, with a significant portfolio of wind and solar assets in Europe, is strategically positioning itself as a dividend-yielding player in the green energy transition. Paul O'Donnell, Partner at Schroders Greencoat LLP, shed light on the rationale behind the listing during an exclusive interview with CNBC Africa. The move comes amidst a backdrop of power rationing in South Africa, emphasizing the need for sustainable energy solutions. With primary listings in Ireland and the UK, Greencoat has amassed over two and a half billion euros in assets, generating approximately 200 million euros in EBITDA. This move to list in Johannesburg is a strategic expansion into a mature market that showcases a keen interest in renewable energy investments. O'Donnell highlighted that South Africa's deep pool of capital and understanding of energy transition made it an attractive destination for Greencoat's listing. The company aims to offer local investors direct exposure to the European energy transition market while providing stable euro dividends and growth opportunities. Through collaborations with local players, Greencoat intends to share its expertise and contribute to South Africa's transition to clean energy. While currently focused on European markets, the company sees potential for future acquisitions in South Africa as it continues to explore growth opportunities. Despite global headwinds in the renewable energy sector, particularly with the US shifting its stance on renewables, Greencoat remains bullish on the European market. The increasing demand for clean energy solutions driven by electrification of heating, data center demands, and electric vehicles presents substantial investment opportunities. Partnerships with tech giants like Microsoft and Keppel further bolster Greencoat's position in the market. O'Donnell noted that as interest rates in Europe rise, returns in the renewable energy sector have become more attractive, enticing new investors to the market. The upcoming listing on the Johannesburg Stock Exchange signifies a significant milestone for Greencoat Renewables, opening doors for local investors to participate in the global energy transition. As the company prepares for this new chapter, discussions around pricing and market mechanics are expected to intensify in the lead-up to the listing day.