Actis launches $1.9bn pan-African renewable energy platform

23 Feb 2015

Actis, the private equity group, has launched a multi-billion dollar pan-African renewable energy generation platform, in an investment that will benefit energy-starved South Africa.

Actis launches $1.9bn pan-African renewable energy platform

This platform, called Lekela Power, will provide between 700MW and 900MW of wind and solar power, with projects expected to be completed in 2016 and 2017.

Lekela Power's core of projects are in SA and other countries including Ghana and Egypt are covered.

Actis has declined to provide the breakdown of the $1.9bn, that will be funded over three years through a combination of equity and debt.

"With soaring demand and funding constraints, Africa's need for renewable energy is pressing. In South Africa for example, currently 95% of the country's electricity is generated by coal-fired power stations," said Lucy Heintz, head of renewable energy at Actis.

Three wind projects in SA, which were announced last Thursday, will form the bedrock for the platform.

These are located in the Northern Cape and have a combined generation capacity of 360MW.

"While the region has significant natural and fossil fuel resources, a lack of long-term investment has led to a reliance on emergency and short-term diesel generation," Heintz said.

"An improvement in the regulatory regime in many African countries has opened up the sector for further investment. Drawing on our deep understanding of the renewable energy sector, we are looking forward to unlocking the country's formidable renewable resources and meeting some of the urgent demand," she added.

Lekela Power is the eighth such energy platform Actis has created. Actis is investing alongside Mainstream Renewable Power, which will own the other 40% of Lekela Power.

Source: INET BFA

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