African Rainbow Energy and Power

What African Rainbow Energy and Power does

African Rainbow Energy and Power (Pty) Ltd (AREP) is a Johannesburg-based, privately-held clean energy company founded in 2012 by Dr. Patrice Motsepe through his holding vehicle Ubuntu-Botho Energy Holdings. The company invests in and operates utility-scale renewable energy assets across South Africa — spanning solar photovoltaic, wind, biomass, and (per stated strategy) hydro, gas, and complementary transmission — and pursues a longer-term build-out across the African continent.

AREP's commercial engine is the African Rainbow Energy investment platform, launched in August 2021 in partnership with Absa, which contributed R500 million in cash plus R5 billion of in-place renewable energy assets, creating a vehicle with ~R6.5 billion of gross assets covering 31 renewable energy projects. In May 2026, AREP raised its stake in the Johannesburg-based independent power producer SOLA Group from 41% to 83%, consolidating a portfolio now valued at over R20 billion (~US$1.2 billion) and ~2,000 MW of solar and battery storage capacity (1.5 GW operational, 500 MW under construction). Earlier equity positions include 15% in six SunEdison solar PV projects (398 MW), 30% in the Ngodwana biomass project (with Sappi), and 11.25% each in the Kangnas (140 MW) and Perdekraal East (110 MW) wind farms alongside Mainstream, H1 Holdings, Lekela, and community trusts.

The business model combines (i) direct power generation and offtake under multi-year, bespoke PPAs with large commercial and industrial clients — Amazon (the first solar PV wheeling project in South Africa), Sasol, Vodacom, and Sappi — with (ii) regulated utility-scale procurement through South Africa's REIPPPP programme (with secured positions in Round 5), and (iii) equity investment returns from minority and now majority-held project stakes. Revenue mechanics are therefore a mix of recurring PPA tariff income and project-equity returns. Distribution is sales-led and partnership-driven: direct enterprise field sales for C&I PPAs, REIPPPP-led procurement for government/utility offtake, and a major capital-distribution channel via the Absa partnership, which has funded ~46% of South African closed renewable projects to date. CEO Brian Dames (appointed 2014, former CEO of Eskom) leads the executive team; the company is targeting an eventual listing on the Johannesburg Stock Exchange.

Name

African Rainbow Energy and Power

Legal name

African Rainbow Energy and Power (Pty) Ltd

Website

https://arep.co.za

Company type

Private

Founded year

2012

Operating status

Operating

Short description

African Rainbow Energy and Power (AREP) is a Johannesburg-based, privately-held clean energy investment platform founded in 2012 by Dr. Patrice Motsepe, developing and operating utility-scale solar, wind, biomass, hydro, gas, and transmission assets across South Africa and serving commercial-industrial clients (Amazon, Sasol, Vodacom, Sappi) and government via the REIPPPP programme.

Ownership category

akta.pro rank

Product category

Renewable Energy / Independent Power Producer

NAICS

Electric Power Generation (22111), Solar Electric Power Generation (221114), Electric Power Transmission, Control, and Distribution (22112)

SIC

Cogeneration Services & Small Power Producers (4991)

akta.pro primary industry

Development-Stage M&A & Portfolio Acquisition (Early-Stage/Ready-to-Build) (EUAMAAAF)

akta.pro secondary industries

C&I PPAs & Virtual PPAs (VPPA) Origination & Management (EUAGACAF), BESS EPC, Integration & Commissioning (EUAFAAAB), Commercial & Industrial (C&I) DER Aggregation & Load Flexibility (EUAFAHAB)

Keywords

• Renewable energy generation
• Independent power producer
• Solar PV projects
• Wind power investments
• Biomass energy projects

Headquarters

HQ city

Sandston

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Personnel, Supply Chain, Marketing or Sales, Technology or R&D

Revenue model

1. Renewable Energy Generation: Power generation from solar, wind, and biomass renewable assets. Revenue derived from power purchase agreements with commercial and industrial clients and government entities.
2. Equity Investment Returns: Strategic investments in renewable energy projects generating returns through equity ownership. Portfolio includes stakes in SunEdison solar projects (398 MW), Ngodwana Biomass, and Kangnas/Perdekraal East wind farms.

Pricing tiers

Go-to-market motion3 records

Distribution channels3 records

Marketing channels3 records

Core offering

AREP is a clean energy investment platform that develops, owns, and operates renewable energy assets — including solar PV, wind, biomass, hydro, gas, and complementary transmission investments — across South Africa. Through its majority-owned subsidiary SOLA Group and a portfolio of co-developed projects, the company delivers utility-scale and bespoke power purchase agreements to commercial, industrial, and government clients.

Product overview

African Rainbow Energy and Power operates as a unified investment platform focused on clean energy solutions. The core offering is the African Rainbow Energy Investment Platform, which manages a diversified portfolio of renewable energy assets including wind, solar PV, and biomass. Through its majority stake in SOLA Group (83%), the platform extends its capabilities to include solar PV project development and battery storage solutions. The combined entity operates nearly 2,000 MW of solar and battery storage capacity, serving commercial and industrial clients across South Africa.

Differentiator

Problem solved

Functional benefit

Products and services

• African Rainbow Energy Investment Platform An African-led, world-class renewable energy investment platform focused on clean energy solutions including renewables (solar PV, wind, biomass), hydro, gas, and complementary transmission investments. The platform provides affordable energy through modern renewable technologies for commercial and industrial sectors and offers investors long-term, inflation-linked returns and growth.
• SOLA Group

Quantifiable outcome

• Nearly 2,000 MW of solar and battery storage capacity operational or under construction
• +4 more outcomes

Named customers4 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Nine partnerships are on record, tiered flagship, core and minor.

• SOLA GroupflagshipStrategic or Co-development Partner · 18 May 2026AREP acquired controlling 83% stake in SOLA Group, increasing from 41% previous ownership. Combined entity operates nearly 2,000 MW of solar and battery storage capacity. SOLA Group founders Simon Haw, Chris Haw, and Dom Chennells stepping back with Dom Wills returning as group CEO.
• SOLA GroupflagshipStrategic or Co-development Partner · 31 December 2020Initial acquisition of 40% stake making AREP the largest individual shareholder. Deal included significant investment to fund further expansion. Strategic fit based on shared vision of using latest cleanest technology for climate and business returns.
• Mainstream Renewable PowercoreStrategic or Co-development Partner · 22 July 2018AREP as equity member in Kangnas (140 MW) and Perdekraal East (110 MW) wind farms totaling 250 MW capacity. Investment of approximately R6.6 billion. AREP committed 11.25% equity in each project.
• SappicoreStrategic or Co-development Partner · 8 May 2018AREP acquired 30% equity in Ngodwana Biomass Project. Consortium includes Sappi (30% stake), KC Africa, community trust, and employee trust. Investment value R153.4 million. Project is 25MW biomass energy unit.
• Old MutualcoreStrategic or Co-development Partner · 1 October 2017AREP acquired 15% equity in each of 6 SunEdison solar photovoltaic projects through Old Mutual BEE partnership. Projects totaling 398 MW power production. Value approximately R462 million.
• Breakthrough Energy VenturescoreStrategic or Co-development PartnerAREP's holding company Ubuntu-Botho Energy Holdings is the only African company partner in Breakthrough Energy Ventures, started by Bill Gates with global leaders including Jeff Bezos, Richard Branson, Jack Ma, Mukesh Ambani. Fund builds cutting-edge zero-emission energy companies.
• H1 HoldingsminorStrategic or Co-development PartnerWholly black-owned South African energy company. Acquired 11.25% equity in Kangnas and Perdekraal East wind farms alongside AREP.
• LekelaminorStrategic or Co-development PartnerRenewable power generation company with portfolio of more than 1,300 MW across projects in Africa. Equity member in Kangnas and Perdekraal East wind farms.
• Local Community TrustsminorStrategic or Co-development PartnerCommunity trusts with shareholding in renewable projects funded by other project equity partners. Part of economic development criteria in REIPPPP.

Scale indicators7 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• SOLA Group: South African independent power producer specializing in solar PV and battery storage solutions. Now a controlled subsidiary of AREP (83%) but historically a direct peer; comparable C&I focus, ~78 MW commercial solar, and wheeling capabilities targeting enterprise clients.
• Mainstream Renewable Power: Global renewable energy developer with a large South African footprint, including the Kangnas and Perdekraal East wind farms in which AREP holds minority equity. Operates in the same wind/solar project development space targeting REIPPPP.
• Lekela Power: Africa-focused renewable power generation company with over 1,300 MW across African projects. Co-investor with AREP in wind assets (Kangnas/Perdekraal East) and competes in the same REIPPPP-driven wind/solar development landscape.
• Mulilo Renewable Energy: South African renewable energy developer operating solar PV, wind, and battery storage projects, with multiple REIPPPP bid round wins. Closely comparable in technology mix, customer base, and reliance on REIPPPP.
• BioTherm Energy: South African renewable energy independent power producer developing wind and solar PV projects under REIPPPP. Direct competitor in bidding rounds with similar C&I PPA business model.
• Globeleq: UK-based power company operating a portfolio of renewable energy projects across Africa, including South Africa. Comparable as a developer/operator of utility-scale wind and solar projects on the continent.
• Scatec ASA: Norwegian renewable energy developer with operations in South Africa including solar PV projects under REIPPPP. Comparable business model focused on solar/wind development and long-term PPAs with utilities and C&I buyers.

Broad incumbents

• ENGIE South Africa: Subsidiary of global utility ENGIE with renewable energy operations in South Africa. Larger, diversified player with overlapping capabilities in solar, wind, and storage, but broader portfolio beyond AREP's C&I renewable focus.
• Enel Green Power South Africa: Subsidiary of Enel's global renewables arm, active in South Africa through REIPPPP wind and solar projects. Larger incumbent with global scale, technology breadth, and capital advantages vs. AREP.

Regional players

• African Clean Energy (ACE): Renewable energy developer focused on sub-Saharan Africa markets outside South Africa, including solar and mini-grid projects. Comparable technology and African clean energy focus but different geography.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about African Rainbow Energy and Power