RED CAP INVESTMENTS www.red-cap.co.za
Renewable Energy
Innovative
ENERGY With Red Cap Managing Director, Mark Tanton By: Tabrez Khokhar
Kouga Wind Farm Turbines 2
Renewable Energy
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ed Cap is an innovative and dynamic South African company that develops renewable energy businesses and projects.
Red Cap Head Office Location, Hout Bay, Cape Town
Established in 2009, Red Cap is currently focused on developing a portfolio of large-scale wind energy projects across Southern Africa. Aspire Africa caught up with Managing Director Mark Tanton to discuss Red Cap’s successful bids in South Africa’s REIPPP program and the progress on the Kouga Wind Farm project. Mark was recently selected by the Recharge 4040 initiative as one of the world’s foremost young energy pioneers.
Tabrez Khokhar: Give us a brief outline of Red Cap Mark Tanton: Energy shapes our world and drives our economy. Over the last decade, renewable energy has become a financially viable alternative to conventional energy and the sector has experienced unprecedented growth internationally and locally, with renewables expected to fill the need for new power and to displace hydrocarbon-based generation. Red Cap was founded to lead this transformation within the South African energy landscape. TK: How has Red Cap taken successful advantage of SA’s IPP programs? MT: Red Cap is one of the few 100% South African developers in the South African renewable energy sector, and has successfully bid two large-scale onshore wind projects in
the REIPPP programme, with both projects having a large Broad Based Community Trust ownership for the benefit of the local communities, far exceeding the Renewable Energy Bid minimum threshold of 2.5%: •
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The 80MW Kouga Wind Farm bid project in Bid Window 1 of the South African Renewable Energy Independent Power Producer Procurement Programme, and The 111 MW Gibson Bay Wind Farm Project in Bid Window 3 of the South African Renewable Energy Independent Power Producer Procurement Programme in partnership with Enel Green Power.
We have an innovative management team that balances relevant technical and financial experience with policy facilitation, project development and management capability. As a privately owned company, we are able to operate as a project developer, offering Aspire Africa · July/Aug 2015
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In 2014, Mark was selected by the Recharge 4040 initiative as one of the world’s foremost young energy pioneers.
MARK TANTON
Managing Director, Red Cap Investments
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Red Cap Investments · South Africa
Renewable Energy investors and stakeholders the comfort of unbiased expertise. We are also able to engage the market independently, as we are not owned by a utility or tied to any specific manufacturer. Our experience in both the private and public sectors gives us insight into genuinely sustainable current and future opportunities in the energy sector. As a result, we know how to structure business models to best take advantage of these opportunities. Over the years, the team has interacted with many of the key players in the sector and has developed an extensive high-level network. Our partners have a successful track record in the financing and development of renewables globally. TK: Progress of the Kouga Wind Farm (KWF) project and critical milestones achieved MT: All construction on the KWF is now complete and is due to achieve commercial operation. The next step is connection to the national grid. Once operational, these 32 turbines will generate approximately 300 million KWh per year, enough to supply approximately 50,000 average households with electricity. This clean energy works towards powering South Africa’s low carbon future by mitigating over 300,000 tons of greenhouse gas emissions annually. In addition, via the Kouga Wind Farm Community Development Trusts 26% ownership and the Project Company’s socio economic development projects, the wind farm will inject in excess of R250 million into local upliftment projects that will directly benefit members of historically disadvantaged communities in the region. TK: Any current projects involved with or upcoming?
MT: We are currently involved in the financial close for The Gibson Bay Wind Farm in partnership with Enel Green Power. •
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The Gibson Bay Wind Farm is a R2.25bn on shore wind renewable energy project that consists of 37 turbines each capable of generating 2.5MW of power, delivering 111MW of new grid connected capacity. The Gibson Bay wind farm is located in the Kouga region of the Eastern Cape and once commissioned the 37 turbine project will enter commercial operation in early 2017, generating in excess of 424GWh per year The Gibson Bay Community Trust owns 40% of the wind farm.
Khana Energy is participating in the round 4 REIPPP bidding process for wind energy generation projects. Red Cap has a 49% ownership in Khana Energy. TK: Give us an overview of Khana Energy and your partnership with Gamiro Investments, how will this facilitate Red Cap? MT: Red Cap strongly believes the SA Renewable Energy industry profile needs to transform and the skill transfer needs to take place in a sustainable way. As such Khana Energy was founded to participate as a co-investor in projects successfully bid in the South African Renewable Energy Independent Power Producer Procurement programme. Khana Energy is a black owned and controlled renewable energy company with the vision to become a fully integrated, fully operational black, South African independent power producer with the skills and capacity to deliver every aspect from project bidding to successful implementation. Aspire Africa · July/Aug 2015
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www.red-cap.co.za
Red Cap Team (L to R) Erica Morgan, Christelle Roy, Lance Blaine, Mark Tanton, David Nicol, Sam Parenzee, Jadon Schmidt Khana Energy is committed to transformation and development in the Renewable energy sector in a sustainable and meaningful way, as such Khana Energy aims to build an operational entity that houses the best South African and global skills in the sector and is committed to creating jobs and transferring capability that will eventually be owned by young, capable and appropriately qualified South Africans.
which we are involved, and are committed to transformation within these communities and the industry as a whole. In line with this commitment we work to build relationships with the community, facilitating community participation in our wind farms through large broad-based Community Trust ownership for the benefit of the local communities, far exceeding the Renewable Energy Bid minimum threshold of 2.5%.
Through a partnership between Gamiro Investment Group and Red Cap, the executive team consists of a diverse and skilled group of South African professionals with proven renewable energy, project finance and economic development capabilities to meaningfully add value to projects in which they are invested.
By involving all stakeholders, we are able to develop successful projects that benefit and support local communities.
TK: Outline impacts Red Cap has had recently – on communities, economic development, environment, etc. MT: As a 100% South African developer we are committed to the communities in 6
Red Cap Investments · South Africa
All of Red Cap’s wind energy projects are developed in partnership with landowners, the local community, environmental groups and public stakeholders – with the aim of benefitting all parties involved. Closer to home, Red Cap has initiated a programme of maths numeracy in the local community, donating 10 tablets to the Silikamva High School in Hout Bay.
Renewable Energy This school is situated next to the informal settlement of Imizamo Yethu and the school primarily serves this disadvantaged community. This Tablet Maths programme, taught by a Red Cap Director, uses various maths APPS to teach basic maths numeracy to scholars moving from junior to senior school. This is a pilot programme, taking place weekly for an hour in a facilitated class
Kouga Wind Farm Landscape
TK: What is Red Cap’s roadmap for the near future and expansion priorities? MT: We want to focus on growing Red Cap’s portfolio of innovative and progressive projects within South African renewables & clean energy. Establishing Khana Energy as the empowerment partner of choice and successfully developing Khana into SA’s leading fully-fledged local black owned IPP over 5-7 years. TK: What is the Recharge 4040? MT: it is a diverse group of energy pioneers from major wind and solar companies, banks, investment funds, crowd-funding platforms and governments from across the globe. TK: Give us your closing thoughts MT: Red Cap has an exemplary success record within the Renewable Energy Independent Power Producer Procurement Programme in South Africa. It has a highly skilled and experienced team and is able to identify and resolve issues prior to bid to ensure projects are best positioned to be successful in both enticing investors and becoming a preferred bidder. ASPIRE
Innovating Energy in South Africa to create a Cleaner Future Red Cap’s vision is to identify and develop business opportunities within the renewable energy industry. We aim to set the industry standard and drive best practice, ensuring sustainable socio economic benefits to the communities involved. We are currently focused on developing a portfolio of large-scale wind energy projects across Southern Africa, all in close partnership with the local community, environmental groups and public stakeholders. We have a strategic, long-term view to project development. Our business model is to be involved in the entire project process, from early stage scoping through to permitting and operation of the wind farm. We cover the full range of development activities, including land acquisition, site engineering, project finance, stakeholder engagement and overseeing plant construction and operation.
Aspire Africa · July/Aug 2015
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www.red-cap.co.za Red Cap Head Office Unit B2, Mainstream Centre, Main Road, Hout Bay, Cape Town - South Africa Tel: +27 (0) 21 790 1392 info@red-cap.co.za
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