Italian multinational renewable energy corporation Enel Green Power (EGP) has signed a Joint Venture Agreement with Qatar-based sovereign wealth fund, Qatar Investment Authority (QIA), to finance, build and operate renewable energy projects in sub-Saharan Africa.
The Agreement establishes that a subsidiary of QIA will acquire 50% of EGP’s stake in current operational projects – with an estimated initial portfolio capacity of 800MW – as well as those under construction in South Africa and Zambia. Additionally, the joint venture (JV) establishes that the partners will form a new legal entity regarding future developments, in which the JV will have the right to invest in projects and be responsible for financing and construction after EGP has developed each project.
“Through this partnership, we will combine our group’s sustainable strategy, enhanced by our individual expertise in business development, engineering and construction, as well as operation and maintenance of renewable plants with QIA’s long-term investment strategy, in line with the two companies’ sustainability and decarbonization targets,” stated Francesco Starace, Enel CEO and General Manager.
“We are delighted to partner with Enel Green Power to invest in clean energy generation in sub-Saharan Africa,” stated Mansoor bin Ebraham Al-Mahmoud, CEO, QIA. “QIA is committed to supporting the transition to a low-carbon future, and we believe this investment can make a significant environmental and social impact. We share a mutual vision with Enel in supporting decarbonization efforts and believe this investment represents an excellent opportunity to develop and grow a leading renewable energy platform in the region.”
QIA will acquire a 50% stake in four renewable energy projects, namely, the operational 34MW Ngonye photovoltaic power plant in Zambia; the 148MW Nxuba wind farm in South Africa; and four projects under construction in South Africa with a total capacity of 587MW.