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Enel Green Power and the Qatar Investment Authority have agreed to form a joint venture to develop renewable energy projects in Southern Africa.
- This agreement will see the Qatar based fund buy out 50 per cent stake in four of Enel’s current projects being developed.
- This move is part of Enel’s plan to combine its technical capacity with a “stewardship business model” to ensure optimal service delivery.
Southern Africa is getting a boost in its bid for renewable energy development. The Qatar Investment Authority (QIA) and Italian Energy giant Enel has signed on to form a joint venture for the development and exploitation of renewable energy in the region. The Qatar Investment Authority (QIA) is a sovereign investment fund based in Doha, Qatar, with over $100 billion in assets worldwide. Under the agreement, QIA will acquire a 50 per cent stake in four Enel Green Power projects already under development. The projects are located mainly in Southern Africa with a cumulative capacity of 800 MW.
The agreement covers the 34 MWp Ngonye solar photovoltaic power plant in Zambia. In South Africa, the recently completed 148 MW Nxuba wind farm; and four projects under development; Oyster Bay (148 MW), Garob (145 MW), Karusa (147 MW) and Soetwater (147 MW) are covered by the agreement,
According to developer Enel, the power plants have long-term power purchase agreements (PPAs) signed with the state-owned utility Eskom. The wind projects at Oyster Bay, Karusa, Soetwater and Garob are expected to be connected to the grid in 2021. According to Enel, “the overall transaction is subject to ”change of control approval” and ”antitrust clearance” by the relevant institutions and regulatory authorities. As part of the transaction, Enel Green Power and QIA will form a new legal entity for future developments in Sub-Saharan Africa. After the closing of the transaction, all legal entities may be merged into a single joint venture.”
Enel Green Power will, however, retain 100 per cent ownership of its facilities in South Africa including the Nojoli and Gibson Bay wind farms and the Upington, Adams, Pulida, Tom Burke and Paleishuewel solar Power Plants all with a cumulative capacity of 522.5MWp
Francesco Starace, Enel Green Power’ CEO noted that the partnership would enable Enel to combine its sustainable strategy, strengthened by industry expertise in business development, engineering and construction, and operation and maintenance of renewable energy facilities, with QIA’s long-term investment strategy, in line with the sustainability and decarbonisation objectives of both companies.