Aurora Grid Renewables — ESG & Development Impact

The carbon-avoidance impact, the environmental programme, the regional development contribution, the jobs and the governance underpinning Aurora Grid.

Aurora Grid Renewables Business PlanSection 11 › ESG & Development Impact

Section 11 · Business Plan

ESG & Development Impact

The carbon-avoidance impact, the environmental programme, the regional development contribution, the jobs and the governance underpinning Aurora Grid.

11.1 Climate and development impact

Aurora Grid is, by its nature, a climate-finance asset. By Year 10 it
will generate over 18 TWh of renewable electricity annually and avoid
approximately 22 million tonnes of CO₂ per year by displacing coal-fired
generation, directly advancing South Africa’s Nationally Determined
Contribution and Just Energy Transition commitments. It will create over
8,000 direct jobs and support 35,000 indirect jobs, improve energy
security across Southern Africa, enable industrial decarbonisation, and
mobilise nearly R50 billion of infrastructure investment.

Figure 22
Figure 22 — Development impact: CO₂ avoided and jobs supported through the build-out

11.2 Green finance and ESG alignment

  • Direct alignment with climate-finance mandates, green bonds,
    energy-transition funds and DFIs — the deepest, fastest-growing
    infrastructure capital pools
  • A dedicated R5.0bn green-bond programme, ring-fenced to eligible
    renewable assets with independent use-of-proceeds and impact
    verification under the Green Bond Principles
  • Carbon-markets division generating verified carbon credits and
    RECs, monetising and certifying the platform’s climate impact
  • IFC Performance Standards and Equator Principles as the
    governance baseline for DFI participation (IFC, DBSA, IDC,
    AfDB)

11.3 Social and governance

  • REIPPPP-style economic-development and community-ownership
    structures (community trusts holding project equity, as demonstrated
    across recent BESIPPPP awards)
  • B-BBEE participation, local content and skills development across
    solar, wind, BESS construction and operations
  • Energy security and industrial competitiveness — enabling mining
    and manufacturing to decarbonise and stabilise energy costs
  • Regional energy access and integration through SADC expansion,
    supporting development beyond South Africa’s borders

11.4 Quantified impact and the just energy transition

Aurora Grid’s impact is material, measurable and aligned with South
Africa’s Just Energy Transition Partnership and Nationally Determined
Contribution. The platform contributes directly to the national
decarbonisation pathway while creating employment and industrial
competitiveness across the region.

Impact dimension Year-10 target Contribution
Renewable generation 18+ TWh/year Displacing coal; energy security
CO₂ avoided ~22 Mt/year NDC and JET-P decarbonisation pathway
Direct employment 8,000+ jobs Construction, O&M, trading, corporate
Indirect employment 35,000+ jobs Supply chain, community, induced
Investment mobilised ~R50 bn Infrastructure; crowding-in private capital
Regional access 6 countries SADC energy security and integration

The just-transition dimension is central to the platform’s social
licence and its access to concessional capital. By creating employment
in renewable construction and operations — including in coal regions
such as Mpumalanga as the fleet retires — supporting community ownership
under REIPPPP- and BESIPPPP-style economic-development requirements
(community trusts hold equity across recent Scatec awards), and enabling
energy-intensive industry to decarbonise and stay globally competitive
under carbon-border adjustment mechanisms, the platform aligns
commercial return with national transition objectives. This alignment is
what unlocks the deepest pools of DFI, green-bond and climate capital,
and it is integral to the investment case rather than an adjunct to
it.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Aurora Grid Renewables Holdings (Pty) Ltd.