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Winch Energy completes funding for African solar projects

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Energy Global,


Off-grid utilities provider, Winch Energy, has completed the funding for solar mini grid projects in 49 villages across Uganda and Sierra Leone through the creation of a new platform, Winch Energy IPP Holdings Limited (WIPP). The deal represents one of the largest mini grid financing portfolios to date, bringing together several major players in the off-grid space, and was finalised on 29 January 2021. The company is owned by Total Eren, Itochu Corporation, Al Gihaz Holdings and Winch Partners.


Winch Energy – Bafodia, Sierra Leone

The investment comes from Winch Energy in partnership with NEoT Offgrid Africa (NEoT) – a platform established by Meridiam, EDF and Mitsubishi Corporation. NEoT supports and accelerates Africa’s energy transition and has already invested more than €30 million in the electrification of 25 000 homes and businesses in Ivory Coast and Nigeria. SunFunder is also providing an additional US$2 million construction loan to the project. The partnership is in advanced discussions with two international development finance institutions to bring debt into the project, which has been agreed in principle. Subsidies are provided by the Foreign, Commonwealth & Development Office (FCDO, formerly DFID) for the projects in Sierra Leone and by the German Development Ministry (BMZ) and EU in support of the Ugandan projects. The project development is also supported by GIZ in Uganda and the United Nations Office for Project Services (UNOPS) in Sierra Leone.

The mini grids will be built with Winch Energy’s own proprietary technology, the Remote Power Unit (RPU), and will be operational within the next 12 months, providing remote communities with affordable, clean energy and access to essential services. This US$16 million award-winning project will have a capacity of connecting more than 6500 customers. The sites, located in the Lamwo district of Uganda and in Tonkolili, Koinadugu and Bombali districts of Sierra Leone, will supply clean energy to over 60 000 people for the first time.

A further 6000 portable batteries will also be installed through the project to provide people outside of the mini grid catchment area with clean electricity. In addition to energy access, the project will also provide internet to the communities through partnerships with telecom operators in both countries. The developments will open up a pipeline of additional projects in both countries.

Together, the Winch Energy and NEoT investment vehicle, WIPP, expects to expand operations into more countries, with ambitions to reach some US$100 million of operating projects in the next 24 months. Main contractors to the transaction are Winch Energy Italy SRL and Sagemcom. Legal advisers to the transaction were Fieldfisher and Clarkson, Wright and Jakes, acting on behalf of Winch Energy and WIPP and August Debouzy, representing NEoT.


Winch Energy RPU installation in Benin

Winch Energy already operates 13 sites in northern Sierra Leone, which were completed as part of an earlier phase of this project. The company also powers communities in Benin, Mauritania and Angola, with a project to supply power to 20 000 residents in Bunjako on Uganda’s Lake Victoria expected to be fully operational by March 2021. The latest projects will support the company to deliver sustainable, reliable energy to all.

Nicholas Wrigley, Chief Executive Officer of Winch Energy Limited, comments: “We are thrilled to have achieved the funding for our projects in Sierra Leone and Uganda through the creation of this new platform, Winch Energy IPP Holdings, with our partners NEoT Africa. This platform will enable us to rapidly scale up operations in Africa. Not only does this deal pave the future for Winch Energy as a leader in large-scale off-grid renewables, it also stimulates economic growth and improves education and healthcare provision in remote communities.”

 

 

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Read the article online at: https://www.energyglobal.com/solar/17022021/winch-energy-completes-funding-for-african-solar-projects/

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