The Industrial Development Corporation (IDC) has entered into a co-funding arrangement with Fedgroup’s Renewables Capital Fund, supporting a structured financing model for renewable energy assets. The fund is a newly established Fedgroup investment vehicle that pools renewable energy and infrastructure-linked projects backed by industrial and commercial companies.The arrangement provides funding for renewable energy projects that require long-term, structured financing rather than traditional bank lending. The commitment provides backing for a portfolio of renewable energy and infrastructure-linked assets tied to industrial users, with the first identified projects being steel manufacturer Coega Steels and pulp and paper producer Mondi.Fedgroup CEO Rob Timmis said the IDC’s participation shows confidence in the structure of the platform, the underlying assets and the quality of the industrial demand supporting the projects.“Given that we were already committed to developing these projects independently, the IDC recognised that this was not a speculative investment approach, but a scalable long-term infrastructure platform built around proven demand and real industrial activity,” Timmis said.The fund evolved from Fedgroup’s earlier Green Energy Fund, which was initially financed internally before selected projects were transferred into a dedicated investment vehicle designed to attract institutional capital. In the current structure, Fedgroup acts as both originator and fund manager, while the IDC participates as a long-term co-funder through debt financing.According to Timmis, the IDC’s involvement strengthens confidence in the platform and supports its positioning in the renewable infrastructure financing market.“The IDC plays a critical role in supporting industrial development and economic growth in South Africa, so its participation is a strong endorsement of both the quality of the underlying assets and the long-term viability of the platform,” he said.A key project within the portfolio is a 7.1MW solar photovoltaic installation at Coega Steels, located in the Coega Industrial Development Zone in the Eastern Cape, one of South Africa’s key manufacturing hubs.The project, financed through a R51.8m structure, includes rooftop and ground-mounted solar infrastructure spanning more than 11,000 panels. It is expected to generate about 9.3 gigawatt-hours of electricity in its first year of operation.The model reflects growing investor appetite for infrastructure assets with predictable cash flows, inflation-linked characteristics and exposure to long-term structural themes such as energy transition and industrial resilience.