Italian multinational renewable energy corporation, Enel Green Power (EGP) has signed an agreement with a Qatar Investment Authority (QIA) subsidiary to form a joint venture to build and operate renewable plants in Sub-Saharan Africa. Qatar Investment Authority is the sovereign wealth fund of the State of Qatar. Under the agreement, QIA will acquire 50% of EGP’s stake in approximately 800 MW of projects in operation and under construction in South Africa and Zambia.
“We are delighted to partner with Enel Green Power to invest in clean energy generation in Sub-Saharan Africa,” says Mansoor bin Ebrahim Al-Mahmoud, CEO of QIA
The acquisition of 50% of Enel’s sub-Saharan energy capacity by QIA is the first phase in the implementation of the agreement. EGP and QIA will form a new legal entity for future developments in Sub-Saharan Africa. After closing, all legal entities may be merged into a sole joint venture company.
We will work together to accelerate the creation of an extensive green energy footprint in Sub-Saharan Africa
Francesco Starace, Enel CEO and General Manager
Joint venture structure
Enel Green Power (EGP) and Qatar Investment Authority (QIA)’s joint venture is subject to the approvals of relevant institutions and regulatory authorities. The two companies have not disclosed financial details of the deal.
The deal will include QIA taking up stakes in a 34MW Ngonye PV plant, already in full operation in Zambia. At the same time, it will take a stake in the 148MW Nxuba wind farm, recently-connected plant in South Africa. Also in South Africa, it will take stakes in four under-construction projects with a total capacity of 587MW.
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. At that point, the joint venture will be in charge of financing and building the new renewable projects.
“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 decarbonization 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,” said Francesco Starace, Enel CEO and General Manager
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), Paleishuewel (82.5 MW).
