Pele Energy Group (PEG), a South African independent power producer, has announced $31 million in funding from Nedbank and the Norwegian Climate Investment Fund, managed by Norfund. This investment strengthens PEG’s ability to expand its renewable energy portfolio and accelerate project development across Africa.
The capital raise has established "Pele Energy Fund 1," a structured investment platform where Nedbank and Norfund act as limited partners, with PEG serving as the general partner. This financial structure enables PEG to pursue large-scale renewable energy projects through its operational subsidiaries:
PEG CEO Gqi Raoleka says the funding marks a pivotal milestone for the company and the broader renewable energy industry. The backing from major financial institutions validates PEG’s long-term vision while providing the capital necessary to accelerate project execution and pursue new opportunities across the continent.
With South Africa facing increasing energy security challenges, PEG has outlined plans to raise an additional R2-3 billion over the next two years. This aligns with the company’s strategy to expand its investment footprint and address the region’s growing demand for reliable renewable energy solutions.
The investment model adopted in this partnership showcases how financial sustainability can be paired with impact-driven initiatives to scale renewable energy development. Nedbank’s Head of Infrastructure, Energy, and Telecommunications, Mike Peo, highlighted the innovative financing approach, reinforcing the bank’s commitment to supporting sustainable energy partnerships.Norfund projects that the renewable energy developments supported by this investment will contribute to avoiding approximately 1.9 million tons of CO2 emissions per year. Bjørnar Baugerud, Head of the Climate Investment Fund at Norfund, noted that the initiative directly supports South Africa’s energy transition while aligning with broader global decarbonization efforts.
