EGP and QIA support renewable energy in Africa

In this first phase, the transaction involves the acquisition by QIA of 50% of EGP’s stake in four projects under construction in South Africa and two plants in operation in the same country as well as in Zambia, for a total capacity equal to approximately 800 MW (the initial portfolio). The overall transaction is subject to the ‘change of control approval’ and ‘antitrust clearance’ from relevant institutions and regulatory authorities. Under the transaction, EGP and QIA will form a new legal entity for future developments in Sub-Saharan Africa. After closing, all legal entities may be merged into a sole joint venture company.

Under the agreement, EGP will be responsible for the development of each project and the joint venture has the right to invest in the projects following the successful completion of the development phase by EGP and receipt of any required regulatory approvals. At that point, the joint venture will be in charge of financing and building the new renewable projects.

This overall transaction is in the framework of the ‘Stewardship’ business model, in line with the Group’s Strategic Plan for 2021 - 2023, whereby the group provides key services, products or know-how enabled by platforms catalysing investments of third parties to maximise value creation. EGP, including through its local subsidiaries, will support each project in the joint venture, in relation to the funding, construction and operation activities.

The initial portfolio, for an overall installed capacity of approximately 800 MW, consists of one plant already in full operation in Zambia (the Ngonye photovoltaic plant, of 34 MW), one recently-connected plant in South Africa (the 148 MW Nxuba wind farm), and four projects under construction (for a total of 587 MW), namely the South African wind farms of Oyster Bay (148 MW), Garob (145 MW), Karusa (147 MW) as well as Soetwater (147 MW). These plants hold long-term power purchase agreements. Oyster Bay, Karusa, Soetwater and Garob are expected to start operating during 2021.

In South Africa, EGP will retain ownership of more than 500 MW including the wind farms Nojoli (88 MW) and Gibson Bay (111 MW), as well as solar plants Upington (10 MW), Adams (82.5 MW), Pulida (82.5 MW), Tom Burke (66 MW), Paleishuewel (82.5 MW).

Read the article online at: https://www.energyglobal.com/special-reports/08012021/egp-and-qia-support-renewable-energy-in-africa/