Pele Energy Group (PEG) has announced the completion of a R575 million capital raise that will significantly bolster its renewable energy and impact ambitions. This investment, backed by Nedbank and the Norwegian Climate Investment Fund, managed by Norfund, marks a pivotal milestone in PEG’s mission to drive energy and socio-economic transformation across South Africa and beyond.

The transaction reinforces Nedbank and Norfund’s confidence in PEG’s business and strategy, through two key operational subsidiaries with Pele Green Energy (PGE) as a leading Independent Power Producer (IPP) and Knowledge Pele (KP) as a pioneering force driving socio-economic transformation. This strategic backing provides PGE with the financial flexibility to scale its renewable energy portfolio, expand its footprint in South Africa and the broader African continent, and accelerate the transition towards a sustainable, low-carbon future.

“This transaction is a game-changer for the Pele Energy Group and the broader renewable energy sector,” said Gqi Raoleka, CEO of Pele Energy Group. “Having Nedbank and Norfund as strategic partners in our capital structure reflects their strong belief in our vision and capabilities. This backing enables us to accelerate project development, scale impact, secure new opportunities, and drive sustainable energy solutions that will have a lasting impact on Africa’s energy future.”

The equity raise, through an investment vehicle (“Pele Energy Fund 1”) with Nedbank and Norfund as key limited partners (LPs) and PEG as the general partner (GP), has created a flexible and scalable investment platform designed to support future large-scale energy projects. The fund is structured to provide long-term capital, positioning Pele as a key player in the evolving energy landscape.

“The Nedbank Group is very proud of our role in leading the structuring, execution and participation in one of the most innovative and exciting transactions in the South African renewable energy space” said Mike Peo, Head of Infrastructure, Energy and Telecommunications. “We continue to focus on supporting and creating sustainable partnerships, through the design of innovative structures coupled with balance sheet support” said Peo, “and the reinforcement of our demonstrated commitment to the decarbonisation of the country and the continent through investment in the renewable energy sector”.

In line with its capital strategy, PGE is targeting R2–3 billion in additional capital over the next two years to expand its investment portfolio and support South Africa’s growing demand for renewable energy. The structure allows for agile capital deployment, ensuring that PEG remains at the forefront of delivering bankable, large-scale energy projects with long-term sustainability at their core.

The partnership with Nedbank and Norfund is a testament to the long-term vision shared by all stakeholders—to create a financially viable, impact-driven, and scalable model for renewable energy investment in Africa.

“We have been impressed with the great work of Pele Green Energy and we are delighted to be part of this next step in developing the sustainable and renewable energy solutions South Africa needs to cover the country’s increasing demand for energy while avoiding increasing climate gas emissions, says Bjørnar Baugerud, Head of the Climate Investment Fund in Norfund.

According to Norfund’s estimations, the investment will contribute to projects that will avoid 1.9 million tons of CO2 annually.

PGE’s commitment to sustainable power generation, job creation and economic growth is further reinforced by this strategic investment. As the company continues to expand its renewable energy portfolio, it remains dedicated to delivering impactful energy solutions that align with South Africa’s energy security and decarbonisation goals.

Pele Green Energy