www.access-power.com
ACCESS POWER
Access Power
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Access Power · Continental
Renewable Energy
RIDING THE WAVE OF AFRICAN GROWTH An Exclusive with Access Power, MD, Vahid Fotuhi By: Nicholas Paul Griffin
Aspire Africa · Issue 6.0
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Access Power is currently developing power projects worth over USD $1 billion in 23 countries across Africa and Asia.
Vahid Fotuhi Managing Director, Access Power
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ccess Power is a fast-growing developer, owner and operator of power assets in emerging and frontier markets. The company is currently developing power projects worth over USD $1 billion in 23 countries across Africa and Asia and celebrates its six-year anniversary this year.
Access Infra Africa
Over this half-decade, the company has gone from acting as an advisor to being one of the leading developers of renewable energy projects in emerging markets. Managing Director Vahid Fotuhi spoke to Aspire Africa about the strides the company is making in providing invaluable assistance to the people of Africa.
“We are very much believers in providing sustainable energy for emerging markets,” Mr Fotuhi says.
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Access Power · Continental
Access Power’s focus is on two emerging market regions, one of which is Africa and the other is, broadly speaking, Central Asia. The company has built two divisions with the dedicated skills and resources to focus attention on these markets.
“No continent represents the emergence of economies like Africa. In fact, 5 of the world’s top 10 growing economies are in Africa, and we see this as a huge opportunity.”
We already have projects that are connected to the grid and providing electricity.” Vahid Fotuhi
Renewable Energy
There are 600 million people on the continent living without access to electricity. For Access Power, this represents a significant opportunity to provide a completely sustainable energy solution, free from dependence on hydrocarbons.
Mr Fotuhi believes there are three key elements to the company’s offering, the first being the foundation of an extremely strong technical team with years of experience in identifying and harnessing a country’s best resources.
The urgent need for electrification, coupled with a rapid evolution of the power markets, provides an opportunity for the private sector to profitably develop, own and operate power generation assets. This has resulted in Access Power’s ongoing work in Africa.
“We couple that [experience] with a commercial team that is very skilled in chartering contractual documents that are very competitive for government off-takers. Thirdly, we have great relationships with leading banks.”
“The vehicle that we have established for the development of renewable energy projects in Africa is called Access Infra Africa, and through that we develop projects across 15 different markets in Africa.”
The strength of these relationships enables the company to secure low-cost financing solutions to bring to the table, presenting the opportunity to provide great technology, strong commercial terms and competitive electricity tariffs for the host government.
By utilizing solar and wind power, which all African countries have access to in some capacity, Access Power is able to equip people with stand-alone solutions that provide them with electricity day and night. “Solar and wind power champion these forms of electricity. It provides these countries not just [with] energy but also energy security and energy independence. They do not need to worry about importing diesel or HFO, importing LNG from other markets to fuel growth.” There are sufficient sources of debt and equity available for the funding of power projects in the emerging markets of Asia and Africa, but these markets suffer from a lack of suitable projects in which funds can be invested. The lack of projects could be directly attributed to the fact that very few companies with the appropriate experience and resources are willing to take a risk on early stage project development. Access Power looks to buck this trend to help solve Africa’s power problem.
Access Power is currently active in 15 African markets, from Egypt to Zambia and Mali to Uganda. It has developed key insight and understanding of trends and best practices across the continent, providing the best possible service to governments and utilities in Africa. “We already have projects that are connected to the grid and providing electricity,” Mr Fotuhi says. “[As well as] projects that are at a financial close and are ready for construction. And we have projects that are in late stage development.”
Cultivating Relationships One of the most important elements of Access Power’s business model is the relationships it forms with governments, relationships that require honesty and trust in order for work to proceed in the most efficient and prosperous manner. Aspire Africa · Issue 6.0
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Access Power is a long-term player in each of the 15 African markets in which it is operating or developing projects.
“Wherever we go,” Mr Fotuhi explains, “we like to go hand-in-hand with the government of the country, and put in place foundations of a project that we can then work on together for at least 20 years in the form of a power purchase agreement.” Access Power is not a company to act disingenuously when working on a project, nor is it interested in flipping projects to in order to gain an unfair advantage. It is a long-term player in each of the 15 African markets in which it is operating or developing projects. “We are long-term investors in all our projects, and we strive to provide long-term solutions for the governments we work with. We work with them well beyond the completion of construction to operate the project using local resources and local manpower.” Equally important in getting the job done is the number of valuable strategic partnerships 6
Access Power · Continental
Access Power has power purchase agreements that have been executed in Mali, Nigeria and Zambia.
the company is engaged in. Over the last five years, the company has been able to establish positive relationships with many diverse partners across the continent. “In Egypt, for example, we’ve had a long and fruitful relationship with the Egyptian Electricity Transmission Company (EETC), which is in charge of regulating and developing the electricity sector in the country.” The situation is similar in Uganda, where the company has maintained a long-standing relationship with both the Electricity Regulatory Authority (ERA) and the Uganda Electricity Transmission Co. (UETCL). These partners are the country’s markets regulator and the transmission company respectively, and the partnerships have aided the development of the Soroti project in Uganda, currently producing sustainable
We are long-term investors in all our projects and provide long-term solutions for the governments we work with” Vahid Fotuhi
Renewable Energy
The 10MW Soroti Project is Uganda’s first grid-connected solar plant and East Africa’s largest solar IPP power for over 40,000 homes, clinics and schools. The Soroti Project is one of many the company is involved with, including a 126MWp solar portfolio in Egypt, developed in partnership with the European Bank for Reconstruction and Development (EBRD) and PROPARCO. “Those projects will be [some] of the largest in all of Africa,” Mr Fotuhi explains. “We are very grateful to be able to be developing them and helping grow that very important economy.” Access also has power purchase agreements that have been executed in Mali and Nigeria, as well as a partnership in place in Zambia designed to harness the country’s emerging wind sector, making Zambia a formidable player in the continent’s wind energy market. “One of our core values is sustainability. For projects to be sustainable, we really need
them to be developed hand-in-hand with the local community, whereby everyone sees and enjoys the upside of the project.” In addition to the great benefits projects offer to both Access Power and its investors, they are ultimately installed in order to bring a similar level of benefit to local communities, helping local people lead better lives. Much of this social work has been achieved through the formation of the Access Foundation, a scheme born out of a recognition that holistic community growth initiatives are fundamental to the success of sustainable power project development. The foundation is driven by the conviction for sustainable power generation to alleviate poverty, aiming to inspire sustainable development through lasting partnerships. Efforts are focussed upon the key areas of education, electrification and clean water. Aspire Africa · Issue 6.0
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Opening of the 10MW Soroti Project in Uganda “We’ve mentioned the Soroti project in Uganda,” Mr Fotuhi explains. “[On] that project, even before we secured the land, we had done extensive stakeholder engagement with community leaders, members of the town and across the spectrum to identify their needs.” Through the Access Foundation, the company has empowered various initiatives, notably the expansion and refurbishment of a school local 8
Access Power · Continental
to its solar plant, where facilities have been built for teachers whose only other alternative was hours of travel to fulfill their duties. “We have [also] helped the agricultural sector with the distribution of seedlings, and have installed a borehole which has been very important to the community, providing access to clean drinking water for the entire community near the project site.”
We are proud to be a partner of Power Africa, and to be actively involved in championing the cause of Power Africa.” Vahid Fotuhi
Renewable Energy
Through the Access Foundation, the company has empowered various initiatives
The Future of Sustainability With the US government’s recent withdrawal from the COP21 Agreement, there is some debate as to the impact that will be felt around Africa without every one of the world’s leading nations committing to tackling climate change. “The good news is that in many respects renewable energy today stands on its own two feet,” Mr Fotuhi says, dismissing the idea that Africa will struggle, “whereas before renewables needed government subsidies to become viable.” The world’s economies of scale have improved enough that current solar and wind power projects are much more viable and economically competitive compared to other forms of power generation, notably those based upon fossil fuels. “We see continental governments, particularly a country like Zambia, where they are paying 15-20 cents per kwh to generate power using heavy fuel oil or diesel. We can provide
sustainable power at half that price, something that even a few years ago was unheard of.” Thanks to the economic strides made in the harnessing of these new technologies, Mr Fotuhi insists that the future for solar and wind power is not only far from in trouble, but actually looks very bright indeed. Another concern is the impact of the US’ withdrawal from the Paris Agreement on President Obama’s Power Africa initiative, a project that looks to harness the potential of Africa, pairing it with international know-how to bring to life power projects. “We are proud to be a partner of Power Africa, and to be actively involved in championing the cause of Power Africa. There’s a target of bringing 30,000MW of power projects to the grid by 2030, and we here are believers in the target and a contributor to that campaign.” Like many other companies, Access Power has benefitted from resources provided by Power Africa, having recently been awarded a grant of USD $1million by USTDA through the initiative to finance the feasibility study costs for its wind project in Zambia. Aspire Africa · Issue 6.0
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www.access-power.com
Construction of the 10MW Soroti Project in Uganda One thing that is not in doubt is Access Power’s commitment to encouraging innovation and supporting local business and clean energy entrepreneurship across the continent. One of the ways it demonstrates this is through the Access Co-Development Facility. “The facility is an incubator of local talent and entrepreneurs, identifying and nourishing local developers across the continent by providing technical know-how and funding to bring their renewable energy projects to fruition through our long-term partnership.” This initiative has now been running for three years, and Mr Fotuhi is proud that many of the projects initiated back at the facility’s start have reached a point where PPAs have been signed and executed, and are now working towards financial close. “This would not have been possible had it not been for this facility,” he explains. “To this day we’ve had almost 200 projects come forward for support and we are fortunate to have helped many of these projects through the facility to bring their projects to fruition.” Access Power · Continental
Access Power continues to go through a phase of rapid growth, having almost doubled its employee numbers since its inception, as well as being in the position of having offices across the continent. “It’s a very exciting time for us,” Mr Fotuhi says, “and we’re very fortunate and grateful to be able to play a role in really riding the wave of growth in Africa and bringing to life the future of the renewable energy sector across the continent.” Mr Fotuhi believes it is also an incredibly exciting time to be an entrepreneur in Africa, with the ongoing economic growth streak across the continent amongst the highest in the world, along with signs of rapid urbanization and growth. “This presents opportunities for individuals. If they have ideas for renewable energy projects, they should know there are international partners like Access Power to support them. My message would be: have hope, reach out to us, and together we’ll make magic.” ASPIRE
GAMECHANGER How do you want to convey your success? What is behind African entrepreneurship? Who are the continent’s movers and shakers? What are the challenges they have successfully overcome? How are they making positive contributions towards collective growth and sustainability of the richest continent on Earth? What is the source of inspiration that drives them? These are some of the questions, successes and stories that we are aiming to showcase to our audience!
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