Enel Green Power has signed an agreement with Qatar Investment Authority (QIA) for a joint venture partnership to finance, build and operate renewable projects in Sub-Saharan Africa.
In the first phase, the transaction involves the acquisition by QIA of 50% of Enel’s stake in four projects under construction in South Africa and two plants in operation in the same country as well as in Zambia, for a total capacity of 800MW.
The overall transaction is subject to the “change of control approval” and antitrust clearance from relevant institutions and regulatory authorities.
Under the transaction, Enel 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.
Enel CEO Francesco Starace said: “Through this new partnership, we will combine our group’s sustainable strategy, enhanced by our industrial expertise in business development, engineering and construction, as well as operation and maintenance of renewable plants, with QIA’s long term investment strategy, in line with the two companies’ sustainability and decarbonisation targets.”
QIA CEO Mansoor bin Ebrahim Al-Mahmoud added: “We are delighted to partner with Enel Green Power to invest in clean energy generation in Sub-Saharan Africa.
“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.”
Under the agreement, Enel 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 Enel 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.
The initial portfolio consists of the 34MW Ngonye PV plant in Zambia, the 148MW Nxuba wind farm in South Africa and four projects under construction totalling 587MW), including the South African wind farms of Oyster Bay (148MW), Garob (145MW), Karusa (147MW) as well as Soetwater (147MW).
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 500MW including the wind farms Nojoli (88MW) and Gibson Bay (111MW), as well as solar plants Upington (10MW), Adams (82.5MW), Pulida (82.5MW), Tom Burke (66MW) and Paleishuewel (82.5MW).