ENEL Green Power (EGP) has entered into a joint venture partnership with a subsidiary of Qatar Investment Authority (QIA) to finance, build and operate renewable projects in sub-Saharan Africa.
The two parties also signed an agreement for QIA to acquire 50 percent of EGP’s stake in projects already in operation or under construction in South Africa and Zambia. These projects have an approximate capacity of 800MW.
The 50 percent stake acquisition is the first phase of the project, which encompasses 4 projects under construction in South Africa and 2 already operating power plants South African and Zambia.
The initial portfolio consists of one plant already in full operation in Zambia (Ngonye PV plant, of 34 MW), one recently-connected plant in South Africa (Nxuba wind farm, of 148MW), and four projects under construction (for a total of 587 MW), namely the South African wind farms of Oyster Bay (148 MW), Garob (145 MW), Karusa (147 MW) as well as Soetwater (147 MW). These plants hold long-term power purchase agreements. Oyster Bay, Karusa, Soetwater and Garob are expected to start operating during 2021.
In South Africa, Enel Green Power will retain ownership of more than 500 MW including the wind farms Nojoli (88 MW) and Gibson Bay (111 MW), as well as solar plants Upington (10 MW), Adams (82.5 MW), Pulida (82.5 MW), Tom Burke (66 MW), Paleisheuwel (82.5 MW).
Financing renewables expands green energy footprint in sub-Saharan Africa
Francesco Starace, Enel CEO and general manager said: ‘Through this new partnership we will combine our group’s sustainable strategy, enhanced by our industrial expertise in business development, engineering & construction, as well as operation & maintenance of renewable plants, with QIA’s long term investment strategy, in line with the two companies’ sustainability and decarbonisation targets.
‘We will work together to accelerate the creation of an extensive green energy footprint in sub-Saharan Africa, contributing to the continued pursuit of its ambitious goals in this sector by further harnessing the region’s immense renewable potential and contributing to a more sustainable economic development model in this part of the world.’
The overall transaction is subject to the ‘change of control approval’ and ‘antitrust clearance’ from relevant institutions and regulatory authorities. Under the transaction, EGP and QIA will form a new legal entity for future developments in sub-Saharan Africa and after closing, all legal entities may be merged into a sole joint venture company.
Under the agreement, EGP will be responsible for the development of each project and the joint venture has the right to invest in the projects following the successful completion of the development phase by EGP and receipt of any required regulatory approvals.
Mansoor bin Ebraham Al-Mahmoud, QIA CEO said his company was ‘delighted to partner with Enel Green Power to invest in clean energy generation in sub-Saharan Africa.’ He added, ‘QIA is committed to supporting the transition to a low-carbon future, and we believe this investment can make a significant environmental and social impact. We share a mutual vision with Enel in supporting decarbonisation efforts and believe this investment represents an excellent opportunity to develop and grow a leading renewable energy platform in the region.’
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