Exxaro invests R1.7bn into 213MW renewable energy business

Key topics:

• Exxaro invests R1.7bn to expand renewable energy capacity to 317 MW.

• Acquisition includes Gouda Wind (138 MW) and Sishen Solar (75 MW) farms.

• Cennergi gains full O&M control, boosting efficiency and long-term returns.

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BizNews Reporter

Diversified miner Exxaro Resources continues to aggressively execute its decarbonisation strategy, announcing that its wholly-owned renewable energy subsidiary, Cennergi, has entered into a binding agreement to acquire majority stakes in two operational wind and solar assets from Spanish multinational ACCIONA Energía.

The deal, valued between R1.7 billion and R1.8 billion, will see Cennergi take control of a combined 213 MW of generation capacity, significantly expanding its operational footprint in South Africa’s private energy sector.

Boosting the green portfolio

The transaction involves the acquisition of the 138 MW Gouda Wind Farm in the Western Cape and the 75 MW Sishen Solar Photovoltaic Farm in the Northern Cape. Both facilities are fully operational assets procured under Bid Window 2 of South Africa's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

Both Gouda and Sishen hold 20-year take-or-pay Power Purchase Agreements (PPAs) with Eskom, backed by National Treasury guarantees. These agreements run until 2034 and 2035 respectively, offering Exxaro a decade of predictable, inflation-linked earnings.

By acquiring Acciona’s stake, Cennergi increases its net operating capacity by 117 MW—jumping from 200 MW to approximately 317 MW. When combined with the 180 MW of projects Cennergi currently has under construction, the company’s total net capacity is set to reach nearly 500 MW upon the deal's closure.

The deal mechanics

The acquisition structure is two-fold. First, Cennergi is acquiring 100% of Acciona Energy South Africa (AESA). AESA holds the majority 54.9% stake in the underlying wind and solar assets. The remaining stakes in these assets are held by Celanex (a subsidiary of Royal Bafokeng Holdings) with 25.1%, Soul City Broad-Based Empowerment Company with 10%, and local community trusts holding the final 10%.

Second, Cennergi is acquiring Acciona’s 80% stake in the Operations and Maintenance (O&M) company responsible for managing both farms. This creates significant operational synergies, allowing Cennergi to internalize the maintenance of the plants, potentially driving higher efficiencies and improved portfolio returns.

The purchase consideration will be settled using Exxaro’s existing cash reserves and undrawn bank facilities, highlighting the miner’s strong balance sheet and ability to self-fund its transition away from a pure-play coal reliance.

Strategic pivot

This transaction underscores Exxaro’s evolution into a diversified energy solutions business. While coal remains a strong base for the group, the market has been watching closely for how the company deploys its capital into future-facing commodities and energy.

"The Transaction marks yet another milestone as we continue to accelerate the execution of Exxaro's Sustainable Growth and Impact Strategy," the company noted in its announcement. It reinforces Exxaro's dual ambition: maintaining a strong coal base while building a substantial renewable energy business and pursuing growth in energy transition metals.

Timeline and approvals

The deal is expected to close in the first half of 2026. As is standard for transactions of this scale involving critical infrastructure, it is subject to a raft of regulatory approvals. These include the green light from the Competition Commission, the South African Reserve Bank, and the Department of Energy and Electricity.

For investors, this acquisition signals that Exxaro is moving beyond the planning phase of its transition and is actively buying operational cash flow to balance its portfolio against the cyclicality of the commodities market.