(DBSA) launched its first green bond worth US$240 million in its bid to increase its role in climate financing. The bond was issued through a private placement with the French development finance institution, the Agence Française de Développement. French multinational electric utility company ENGIE reached an agreement to acquire a 40% equity stake in Xina Solar One, a 100 MW Concentrated Solar plant, as well as 46% of the Operations & Maintenance Company owned by Abengoa. The plant is equipped with parabolic trough technology and a molten salt storage system that allows for 5.5 hours of energy storage to provide reliable electricity during peak demand. Wrapping up the quarter, ENGIE announced the signing of an agreement with South Africa’s Department of Science and Innovation, South African National Energy Development Institute, Anglo American, one of the world’s leading producers of platinum group metals, and Bambili Energy, the clean energy solutions provider, to carry out a feasibility study to create an “Hydrogen Valley” located on the Bushveld.
WEST AFRICA
Kicking off the investments in renewables in West Africa was World Bank that approved an additional financing of US$22.5 million for the Regional Off-Grid Electrification Project (ROGEP) to be implemented in 19 countries. The funds, which come from the International Development Association (IDA), a subsidiary of the World Bank, and the Clean Technology Funds (CTF), are for the ROGEP, which will increase access to electricity in 19 countries in West and Central Africa. Investments company Emerging Africa Infrastructure Fund (EAIF), a member of the Private Infrastructure Development Group (PIDG) provided US$34.59 million to Burkina
WWW.AFRICAINCMAG.COM
Faso to support the construction of 30MW solar plant, which will supply national grid. In Nigeria, Havenhill Synergy Limited, a Nigerian clean-tech company that deploys renewable energy solutions, secured US$4.6 million from Chapel Hill Denham Nigeria Infrastructure Debt Fund (NDIF) to build 22 solar mini-grids in rural Nigeria. The financing was obtained through a fund raising in which Chapel Hill Denham Nigeria Infrastructure Debt Fund (NDIF) is the sole participant. Part of the funds allocated by the NDIF was injected by the African Development Bank (AfDB). These minigrids will connect 70,000 people along with other establishments in the host communities to clean, reliable energy supply. Still on Africa’s biggest economy, The Agence Francaise de Developpement (AFD) also supported access to renewable energy for Nigerian manufacturers with US$84.35m under the Sustainable Use of Natural Resources and Energy Finance (SUNREF) Nigeria Programme for renewable energy. The fund would be administered through the Access Bank Plc and the United Bank for Africa Plc. Starsight Energy, a Helios-backed solar power solutions firm, also obtained a US$10 million financing that would enlarge its current senior debt facility in a bid to scale up its generation capacity and services in the Nigerian and Ghanaian markets. The on-grid and off-grid energy services provider would have its existing debt with Finnfund and Oslo-based Norfund – two European development financiers with interest in developing countries – increased by 100 per cent to US$20 million. Similarly, Daystar Power, a provider of hybrid solar power solutions to businesses in West Africa, announced a Series B investment of US$38 million led by the Investment Fund for Developing Countries (IFU), the Danish development finance institution (DFI). With the fundraise, Daystar Power will grow its operations in its key markets of Nigeria and Ghana, while deepening its presence in other regional countries such as Côte d’Ivoire, Senegal, and Togo. In Sierra – Leone, Sunon Asogli Power Ghana Limited, Ghana’s biggest Independent Power Producer, announced plans to expand to Sierra Leonne with a solar power plant in Freetown. The giant power producer is planning to deploy a 20MWp-50MWp Solar PV plant in one year and another 160MW to be known as Benkongor Hydro plant in four years. Total investment cost for the two projects is about US$700million. In Cote D’ivoire, the French Development Agency (AFD) and the European Union (EU) signed a financial agreement with the General
JUNE 2021
AFRICA INC.
67