Energy

Oluwole Eweje, managing director of WATT Renewable Corporation. (Image source: WATT)

AFRIGREEN, a leading investment fund focused on sustainable energy solutions, has entered into a debt facility with several project companies owned by Watt Renewable Corporation (WATT), a provider of hybrid solar solutions in Nigeria

The US$15mn deb facility will finance hybrid solar power plants to be built and operated by WATT. These will serve commercial and industrial (C&I) clients in Nigeria, with a particular focus on those within the telecommunication and financial services sectors. In doing so, WATT is hoping to reduce diesel consumption and CO2 emissions for its clients, enabling them to achieve substantial energy cost savings and reduce their environmental impact.

AFRIGREEN, which is backed by prominent institutions including the European Investment Bank (EIB), the International Finance Corporation (IFC), BIO, Proparco, Société Générale, and BNP Paribas, is offering a local currency facility that matches the payment structure of the power purchase agreements. This will mitigate the currency risk for WATT if the Nigerian Naira devalues.

“We are delighted to support WATT in rolling out hundreds of hybrid sites across the country,” remarked Alexandre Gilles, managing director of AFRIGREEN’s fund advisor. “This represents another key transaction for AFRIGREEN in Nigeria. The combination of high energy prices, good solar irradiation, and strong demand from industrial and commercial energy users makes this market particularly attractive for companies like WATT. By leveraging these favourable market conditions alongside WATT’s exceptional operational performance and a well-structured financing solution, we are setting the stage for a strong and lasting business partnership.”

The new funding will support WATT in its ambition to roll-out hundreds of hybrid solar power sites nationwide to meet the growing energy demands of C&I industrial clients.

“Indeed, we are thrilled to partner with AFRIGREEN on this transformative journey to expand reliable and sustainable energy solutions across Africa," added Oluwole Eweje, managing director of WATT Renewable Corporation. “With this support, it enables us to accelerate our shared mission of providing hybrid solar power to businesses, reducing carbon emissions, and supporting economic growth while enhancing energy security for our clients.”

According to Sherisse Alexander of WATT Renewables, solar and storage present a ‘win-win’ for Nigeria as it seeks to manage its forthcoming data centre market explosion. Click here to read the opinion piece in full.

The fund will help to finance the development of a range of energy solutions. (Image source: Adobe Stock)

Camco, a climate and impact fund manager, has reached first close for its new REPP 2 debt fund

The fund aims to deliver significant climate, economic, and gender impacts while ensuring sustainable returns for investors in Africa’s renewable market. It is structured as a blended finance vehicle to leverage public and private investors to invest in sub-Saharan Africa’s distributed and small-scale renewable energy market.

With backing from the Green Climate Fund (GCF), Norfund, FMO, BIO, Ceniarth, and the Renewable Energy Performance Platform (REPP), Camco reached first close on US$107mn for the REPP 2 debt fund to invest in the African grid of the future. There is also a further US$78mn committed that is subject to conditions.

“Africa’s energy transition is happening. It is critical to invest in the businesses building the African energy grid of the future, which is decentralised, renewable and reliable,” remarked Ben Hugues, REPP 2 director at Camco. “This requires significant and urgent scaling up of finance to enable innovative companies to scale and generate both attractive returns and significant climate impact. It is so exciting to have so many world-leading investors on board who share our vision for Africa’s future and recognise the critical role of blended finance in the sector.”

REPP 2 is dedicated to supporting the decarbonisation of the African energy system while contributing towards closing the US$22bn annual investment gap. Across its lifetime, the fund aims to facilitate the addition of 330MW of new capacity and will provide clean energy access to more than 7.7 million people.

“The Green Climate Fund is proud to be supporting REPP 2,” said Kavita Sinha, private sector facility director at the GCF. “By catalysing innovative business models and capital for clean energy solutions in a region most vulnerable to climate change, we are not only advancing the region's sustainable development, but also contributing to global efforts to combat climate change. This commitment represents a significant step forward in building a low-carbon, resilient future for the communities of sub-Saharan Africa while unlocking new opportunities for economic growth and energy access.”

Diane Isenberg, founder and managing director of Ceniarth, added, “As a private investor in the energy access sector for the past decade, Ceniarth has seen firsthand the opportunities and challenges in bringing reliable electrification to underserved communities in Africa. We are proud to be supporting Camco as the firm brings the right mix of hard-earned experience and expertise to finance the deployment of a range of energy solutions, from solar PV mini-grids to grid-connected projects, at scale.”

The new collaboration will provide a wider offering to customers across the MEA region. (Image source: Jubaili Bros)

Jubaili Bros, a leading supplier of power generation solutions and services, has collaborated with MWM, a provider of sustainable gas gensets, to provide large, gas-fuelled electrical power solutions across the Middle East and Africa

“We are excited to partner with Jubaili Bros, a trusted and respected leader in the power generation market,” said Rene Ludvik, commercial director of MWM. “This new cooperation will provide customers even better access to MWM’s highly efficient gensets and services throughout the life of our products.”

The partnership will be built around MWM’s expertise in gas engine and gas genset technology as well as the extensive engineering and aftersales network. As a result of the collaboration, Jubaili Bros will offer MWM gas generators with 42% and above efficiencies ranging from 400 to 4,500kW electrical that are suitable for a range of applications.

“We are delighted to join forces with MWM, a world-renowned leader in gas engine and genset technology, to offer our customers in the region best-in-class gas generators allied to our leading aftersales experience,” added Marcus Schumacher, group CEO of Jubaili Bros. “We have a long history of providing reliable and customised power solutions to our customers, and we are confident that this collaboration will enable us to meet the growing demand for gas powered generators in the region.”

In addition to support from AfDB, the project is expected to receive further financing from a consortium of development finance institutions (DFIs), banks and financial institutions. (Image source: AfDB)

The African Development Bank (AfDB) has approved a loan of up to US$170mn to support the 1.1GW Suez Wind Project in Egypt

The initiative is the largest of its kind in the North African country and represents a total cost of around US$1.1bn. Awarded the Golden License by the Cabinet of Egypt, the project has been recognised as a strategic initiative for the country and has been provided a set of incentives to accelerate its implementation.

“As the largest wind energy project in Egypt, this initiative exemplifies the scale of renewable energy potential across Africa,” said Wale Shonibare, the bank’s director of energy financial solutions, policy, and regulations. “It demonstrates how strong partnerships and innovative solutions can advance the energy transition and foster sustainable economic development.”

As per the proposed plans, a greenfield wind farm will be designed, constructed, operated and maintained along the Gulf of Suez. This will be across two sites, each with a 550MW capacity that will, together, generate around 4,111GWh annually to more than one million households. This is expected to reduce CO₂ emissions by approximately 1.71mn tons, contributing significantly to Egypt’s climate commitments under the Paris Agreement.

"The Suez Wind Project is a landmark development that underscores Egypt’s leadership in renewable energy and the bank’s steadfast commitment to supporting transformative, clean energy projects across the continent,” commented Kevin Kariuki, vice president for power, energy, climate, and green growth at AfDB. “This project not only facilitates the Government of Egypt’s efforts to achieve 42% of renewable energy in its energy mix by 2030 but also drives local economic growth and strengthens regional energy security.”