Italy's Enel SpA will be launching a joint venture with a subsidiary of the sovereign wealth fund Qatar Investment Authority (QIA) to build and operate renewable energy projects in Sub-Saharan Africa. Enel will be participating in this joint venture through its renewable energy arm Enel Green Power (EGP).
To begin with, QIA will acquire a 50% stake in close to 800 MW of an initial portfolio of EGP comprising 4 under construction projects in South Africa and 2 operational projects—1 each in South Africa and Zambia (34 MW Ngonye PV Plant). The remaining project parts of the deal relate to wind energy.
A new legal entity will be formed for future developments in the Sub-Saharan Africa and after the deal is closed, all legal entities may be merged into a sole joint venture company, EGP explained in a statement issued.
Under terms of the transaction, EGP will develop projects to be built and financed by the joint venture.
Financial terms of the deal were not disclosed as EGP said it is subject to the change of control approval and antitrust clearance from relevant authorities.
"We will work together to accelerate the creation of an extensive green energy footprint in Sub-Saharan Africa, contributing to the continued pursuit of its ambitious goals in this sector by further harnessing the region's immense renewable potential and contributing to a more sustainable economic development model in this part of the world," said Enel CEO and General Manager Francesco Starace.
One of the largest sovereign wealth funds globally, the QIA in December 2019 picked up a 25.1% stake in Adani Electricity Mumbai Limited of India to supply solar and wind power city to Mumbai by 2023 (see Qatar Fund Picks Up 25.1% Stake In Mumbai Utility).
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