Global sustainable infrastructure investor, Actis, has announced that it has signed definitive transaction documents for the acquisition of a controlling stake in Middle East and Africa focused distributed solar energy player, Yellow Door Energy Limited.
According to Actis, the transaction is subject to obtaining the relevant regulatory approvals. The transaction will be funded through Actis’ Energy 5 Fund, Actis’ latest energy fund with US$6 billion of investable capital to accelerate the Energy Transition globally.
“We’re delighted to be contributing to the Middle East and Africa region’s transition away from fossil fuels by deploying new Solar PV technology, presenting an exciting opportunity to scale the business, and where we see a clear opportunity and large addressable market. Our strategy is to build the business into the region’s distributed solar sustainability leader,” said Lucy Heintz, Partner and Head of Energy Infrastructure at Actis.
In Africa, Yellow Door Energy is offering its customers in the commercial and industrial space electricity at more economical and sustainable rates than the grid. The company says it can demonstrate a 10-50% power cost savings for customers. The company has 106MW of solar energy capacity in operation, and 104MW awarded and under construction.
Actis says it will apply its “buy-and-build power strategy” to scale the business and accelerate growth. The investment firm has invested in over 70 renewable energy projects to date, generating approximately 11GW of renewable energy globally.
“This investment from Actis, complemented by increased investments from our current shareholders, Mitsui & Co., Ltd., APICORP, and IFC, is an attestation to the success of our company,” said Jeremy Crane, Founder and CEO of Yellow Door Energy.
“I look forward to continuing our mission to provide clean, affordable, and reliable energy to businesses in the MEA region. As a result, our customers will become more successful, create more jobs and contribute to their local communities. This investment will enable us to scale geographically through both direct and M&A activities,” Crane concluded.