Pele Energy Group Secures $30M USD Investment to Expand Renewable Energy

Pele Energy Group (PEG) has successfully raised $30 million (R575 million) in capital, strengthening its renewable energy and socio-economic impact ambitions. The investment, backed by Nedbank and the Norwegian Climate Investment Fund, managed by Norfund, marks a major milestone in PEG’s mission to accelerate South Africa’s transition to sustainable energy and drive economic transformation.

This strategic funding underscores Nedbank and Norfund’s confidence in PEG’s business model and long-term vision. The transaction will support two key subsidiaries: Pele Green Energy (PGE), a leading Independent Power Producer (IPP), and Knowledge Pele (KP), which focuses on socio-economic transformation. With this capital injection, PGE will have greater financial flexibility to expand its renewable energy portfolio in South Africa and across the African continent.

“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 investment is structured through Pele Energy Fund 1, with Nedbank and Norfund as limited partners (LPs) and PEG as the general partner (GP). This flexible and scalable investment platform is designed to support large-scale renewable energy projects and ensure long-term capital availability.

Mike Peo, Head of Infrastructure, Energy and Telecommunications at Nedbank, commented, “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. We continue to focus on supporting and creating sustainable partnerships through the design of innovative structures coupled with balance sheet support, reinforcing our commitment to decarbonizing South Africa and the continent.”

Looking ahead, PGE is targeting an additional $104–156 million (R2–3 billion) in capital over the next two years to expand its investment portfolio and support South Africa’s increasing demand for renewable energy. The investment structure allows for agile capital deployment, positioning PEG at the forefront of bankable, large-scale energy projects with long-term sustainability.

The partnership aligns with Norfund’s commitment to climate investment. Bjørnar Baugerud, Head of the Climate Investment Fund at Norfund, stated, “We have been impressed with the great work of Pele Green Energy and are delighted to be part of this next step in developing the sustainable and renewable energy solutions South Africa needs to meet increasing energy demand while avoiding rising climate gas emissions.”

According to Norfund, the investment is expected to contribute to projects that will avoid 1.9 million tons of CO₂ emissions annually, reinforcing the critical role of clean energy investments in Africa’s sustainable development.ate 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.