Bravura Energy, a prominent investment firm based in South Africa, has unveiled its exclusive Solar Fund, a dedicated initiative aimed at investing in solar photovoltaic (PV) projects. The innovative fund generates revenue through triple net power purchase agreements (PPAs) established with solar providers.
The primary focus of this Solar Fund is on entities engaged in PPA management, including engineering, procurement, and construction (EPC) companies, which have completed feasibility studies and have projects in the pipeline.
One of the key distinguishing features of the Solar Fund is its role in providing an attractive funding option for these organizations. Traditional financing methods often entail higher costs, whether through debt finance or equity funding. In contrast, the fund offers a more cost-effective solution, characterized by lower interest rates, specifically designed to benefit EPC companies and solar providers.
Bravura Energy has also demonstrated its commitment to supporting the growth of the solar industry by offering the possibility of transferring asset ownership to the solar provider. This transfer can occur after a period of five to ten years, with options for compensation in cash or shares in the provider's business.
In addition to facilitating financial support, the Solar Fund provides access to a pool of financial and technical experts for its clients. The fund is actively engaged in identifying and backing viable projects, contributing to the development of robust and dependable energy supplies in the African region.