Norfund, the Norwegian investment fund for developing countries, has announced a $75 million investment in Mulilo Energy Holdings, a South African renewable energy developer. This strategic move grants Norfund a minority stake in Mulilo, a company specialising in wind, solar, and battery storage projects, and provides fresh capital for Mulilo’s extensive development pipeline, which exceeds 30GW.
Mulilo, backed by Copenhagen Infrastructure Partners (CIP), aims to bolster South Africa’s energy security and facilitate the country’s shift towards a more sustainable energy landscape. The collaboration between CIP and Norfund will focus on supporting Mulilo’s transformation and advancing a near-term pipeline of 5.5GW, with financial close targeted before the end of 2027. Currently, Mulilo’s portfolio includes 765MW under construction, with plans to add another 1GW to its construction portfolio in 2026.
In 2023, Mulilo secured a $200 million investment from CIP and has since emerged as a leader in utility-scale battery projects in South Africa, according to Bloomberg. Robert Helms, a partner at CIP, expressed enthusiasm about the partnership, stating, “We are very pleased to welcome Norfund as a strategic minority investor in Mulilo. This partnership is a testament to the strength and potential of Mulilo, and the progress achieved. Norfund’s investment not only provides valuable growth capital but also brings a highly reputable, government-backed partner with deep experience in the South African energy sector. Together, we will continue to accelerate the energy transition, support local communities, and deliver strong value for our investors.”
Mulilo’s projects are anticipated to prevent around 11 million tonnes of carbon dioxide emissions annually. These initiatives could potentially power approximately 14 million South African households and contribute to the betterment of local communities through various educational, healthcare, and business development programs.
Norfund’s recent investments in South Africa include Pele Energy Group, H1 Capital, Anthem, and electricity trader Etana. Tellef Thorleifsson, CEO of Norfund, remarked, “Norfund is proud to join forces with Copenhagen Infrastructure Partners and Mulilo’s founders and local partners in this landmark investment that will accelerate the deployment of renewable energy across South Africa. Our commitment of $75m reflects our confidence in the platform’s ability to deliver large-scale renewable energy projects that support the transition to net zero.”
This investment signals a significant step in South Africa’s renewable energy sector, with the potential to reshape the country’s energy landscape and drive substantial progress towards its climate goals. The collaboration between Norfund, CIP, and Mulilo could set a precedent for future partnerships, fostering innovation and accelerating the energy transition in developing countries.