Kalahari Grid Energy – Business Plan

Investment-grade business plan for Kalahari Grid Energy (Pty) Ltd — a $5.3-billion capital programme (2026–2032) to develop a 5 GW utility-scale portfolio of solar, wind and battery storage across South Africa and the SADC region under 20-year power purchase agreements, reaching a steady-state $616 million of annual revenue at a 72% EBITDA margin and avoiding around 8 million tonnes of CO2 a year, with a candid assessment that base-case levered returns are thin at a reference tariff near $0.055/kWh (project IRR ~6.7%, equity IRR ~7.1%) and that a bankable, corporate-PPA-weighted path at a blended $0.070/kWh lifts the equity IRR to roughly 15.3% on an 11x exit — the tariff is the hinge.

Confidential Information Memorandum & Funding Proposal

Kalahari Grid Energy

A utility-scale renewable-energy independent power producer for South Africa and the wider SADC region — developing a 5 GW portfolio of solar, wind and battery storage under long-dated power purchase agreements — structured as a $5.3-billion capital programme (2026–2032) for development-finance institutions, climate-finance funds and infrastructure-equity investors.

Legal Entity

Kalahari Grid Energy (Pty) Ltd

Location

South Africa & SADC region

Total Capital Programme

$5.3 billion (2026–2032)

Portfolio Target

5 GW solar, wind & storage by 2032

Steady-State Revenue

$616 million p.a.

Steady-State EBITDA Margin

72%

Base-Case IRR (Project / Equity)

6.7% / 7.1% (~$0.055/kWh)

Bankable-Path Equity IRR

~15.3% (at $0.070/kWh, 11× exit)

PPA Tenor · CO₂ Avoided

20 yrs · ~8 Mt p.a. at 5 GW

Sector

Renewable Energy — Utility-Scale IPP

The Opportunity

Southern Africa faces a deep, structural power deficit and a decisive shift to renewables — South Africa’s REIPPPP bid windows have been heavily oversubscribed (Window 7 solar PV drew roughly 8.5 GW of bids against the capacity on offer, about 4.7× oversubscribed) and corporate offtakers are actively seeking de-risked, long-dated, inflation- and USD-linked clean-energy supply. Kalahari Grid Energy pursues this as a utility-scale independent power producer developing a 5 GW portfolio of solar, wind and battery storage across South Africa and SADC under 20-year power purchase agreements, with a $5.3-billion capital programme through 2032 that reaches a steady-state $616 million of annual revenue at a 72% EBITDA margin and avoids around 8 million tonnes of CO₂ a year at full build-out. The plan is candid about its central sensitivity: at a reference tariff near $0.055/kWh the portfolio’s levered returns are thin (a project IRR of about 6.7% and an equity IRR of about 7.1%, with debt-service cover below the bankable 1.30× threshold), whereas a corporate-PPA-weighted, bankable path at a blended $0.070/kWh lifts the equity IRR to roughly 15.3% on an 11× exit. As the plan states plainly, the tariff is the hinge on which bankability and investor returns turn.

Plan Contents

This investor-grade business plan is organised into the sections below. Each section is a dedicated page — select any to explore the full detail.

Important Notice & Disclaimer

This confidential information memorandum (the “Memorandum”) has been
prepared by Kalahari Grid Energy (Pty) Ltd (“Kalahari Grid” or the
“Company”) to provide prospective funders and investors with information
regarding its proposed 5 GW utility-scale renewable energy independent
power producer (IPP) portfolio across South Africa and the wider
Southern African Development Community. It is furnished on a strictly
confidential basis to a limited number of sophisticated institutional
recipients and may not be reproduced or distributed, in whole or in
part, without the Company’s prior written consent.

This Memorandum does not constitute an offer to sell or a
solicitation of an offer to purchase securities in any jurisdiction, nor
financial advice as contemplated in the Financial Advisory and
Intermediary Services Act, 37 of 2002. Prospective investors should
conduct their own independent due diligence and obtain independent
legal, tax, technical, grid and financial advice. The Company is a newly
conceived developer-IPP; while its strategy is informed by the
demonstrated scale-up of established South African IPPs, Kalahari Grid
is an independent venture and no representation is made that it is
affiliated with, endorsed by, or will replicate the results of any
existing operator.

The projections herein are forward-looking statements resting on
assumptions about grid-connection availability, REIPPPP and corporate
PPA tariffs, capital costs, capacity factors, construction timelines,
exchange rates and interest rates — all inherently uncertain.
Utility-scale renewable development in South Africa faces acute,
well-documented constraints: grid capacity is the binding limit on new
build — in Bid Window 7 solar PV was roughly 4.7 times oversubscribed
(8.5 GW of bids against a 1.8 GW allocation) while onshore wind was
awarded no capacity at all across two successive windows, and Eskom’s
network requires on the order of R100 billion of upgrades, with 60–70%
of prospective projects reportedly facing curtailment or multi-year
connection queues. Where this Memorandum departs materially from the
sponsor’s headline case — most importantly in finding that a blended
tariff of $0.055/kWh is insufficient to service a 75% project-finance
gearing at a bankable debt-service cover, and that the deliverable
structure is lower-geared with correspondingly lower equity returns
unless a higher blended tariff is achieved — these disclosures are made
deliberately and are central to the investment decision.

Figures are in United States Dollars (USD) unless stated, consistent
with the USD-linked PPA assumption; “m” and “bn” denote millions and
billions, “GW”/”MW” gigawatts/megawatts, “GWh”/”TWh” gigawatt- and
terawatt-hours. Certain totals may not cast exactly due to rounding.
Industry statistics are drawn from public sources including the
DMRE/DEE, the IPP Office, NTCSA/Eskom, GreenCape, the CSIR and REIPPPP
bid-window reporting, and are believed reliable but not independently
verified.

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 Kalahari Grid Energy (Pty) Ltd.