BusinessDay

Infinity Group, AFC to buy Lekela Power in Africa’s biggest renewable energy deal

Infinity Group and Africa Finance Corporation (AFC) have announced a strategic partnership that will see them buy 100 percent of the Lekela Power Plant in a deal adjudged to be Africa’s biggest renewable energy deal.

The Lekela Power Plant, which operates five wind assets in South Africa and one each in Egypt and Senegal, will enjoy massive investment from Egypt’s Infinity Group and AFC.

The purchase is to include a 2.8 GW portfolio of projects in operation and development across the continent.

“The proposed acquisition includes Lekela Power’s portfolio of operational wind power projects, which have a combined installed capacity of over 1 gigawatt (GW), mainly located in South Africa, Egypt, and Senegal. It also includes Lekela’s 1.8 GW pipeline of greenfield projects, the majority of which are anticipated to reach financial close in the near future,” the statement read.

This deal will make Infinity Group the only dedicated renewable energy solutions provider in Egypt and will make them the largest renewable energy company in Africa. The group will not only invest in infrastructure, research, development, and operations but explore other avenues for developing clean energy solutions across several sectors and scales.

According to the company, “For nearly a decade, Infinity has been leading the shift to a sustainable future for Egypt and Africa through meticulously developed, commercially viable energy solutions that provide efficient and sustainable access to energy resources for everyone.”

AFC’s involvement with Infinity will help both companies double the capacity of their operating assets in the next four years.

“Our acquisition of Africa’s largest independent power producer in the renewables sector is a major milestone in our strategy for growth across the African continent. We are proud to be playing a key role in contributing to a brighter future for Egypt, South Africa, Senegal and the African continent as a whole,” Mohamed Mansour, co-founder and chairman of Infinity, said.

Read also: How Mojec is championing renewable energy through carbon reduction

For Samaila Zubairu, president and CEO, AFC, the acquisition marks an important milestone in his company’s journey to build a 3GW renewable energy platform.

“We are focused on reducing Africa’s massive energy deficit through expanding the quantum of electricity using the various energy sources available throughout the continent. Consistent with AFC’s mandate to fast-track Africa’s economic development, we have since 2007 developed and financed energy generation and access assets throughout the continent. Working together with our partner, Infinity, we aim to more than double the capacity of our joint operating assets over the next 4 years, which stands at 1.4 GW after the Lekela acquisition,” Zubairu said.

Nayer Fouad, Co-Founder and CEO, Infinity feels the same as Zubairu.

“The acquisition of Lekela is a key milestone for us at Infinity as it not only becomes the largest such acquisition in the history of the continent but also signifies the continuous growth and expansion of Infinity’s efforts to create a sustainable supply of clean green energy. We will continue to build upon our endeavours to create a truly sustainable ecosystem for green energy in Africa,” Fouad said.

Lekela Power is currently 60 percent owned by Actis, a global investor in sustainable infrastructure, and 40 percent by a consortium, led by global wind and solar company Mainstream Renewable Power, called Mainstream Renewable Power Africa Holdings (‘MRPAH’).

Africa’s installed renewable capacity is set to grow from 54 GW in 2020 to more than 530 GW by 2040, according to the International Renewable Energy Agency (IRENA), with solar PV soaring to 340 GW, and wind rising to 90 GW. Increasing renewable energy resources will also drive energy access, with almost half of Africa’s population still without access to electricity.

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