Enel and Qatar Investment Authority Partner on Developing Renewables in Sub-Saharan Africa

Posted on 01/07/2021


Enel’s renewable arm Enel Green Power S.p.A. (EGP) and a Qatar Investment Authority (QIA) subsidiary signed a joint venture partnership to build and operate renewable plants in Sub-Saharan Africa, starting with QIA acquiring 50% of EGP’s stake in approximately 800 MW of projects in operation and under construction in South Africa and Zambia.

Commenting on the announcement in the press release, Mansoor bin Ebrahim Al-Mahmoud, CEO of QIA said, “We are delighted to partner with Enel Green Power to invest in clean energy generation in Sub-Saharan Africa. 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 decarbonization efforts and believe this investment represents an excellent opportunity to develop and grow a leading renewable energy platform in the region.”

In this first phase, the transaction involves the acquisition by QIA of 50% of EGP’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 equal to approximately 800 MW. Under the transaction, 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.

Portfolio

The initial portfolio, for an overall installed capacity of about 800 MW, consists of one plant already in full operation in Zambia (the Ngonye PV plant, of 34 MW), one recently-connected plant in South Africa (the 148 MW Nxuba wind farm), 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), Paleishuewel (82.5 MW).

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