Energy

AFC reaches financial close on 119MW power plant, Burkina Faso's largest, to help close its electricity access gap (Image source: AFC)

A major power project in Burkina Faso is to proceed after securing a first US$60mn tranche of a US$300mn corporate loan facility from Africa Finance Corporation (AFC)

The funds will support the development of the 119MW thermal power plant by Aksa Enerji Üretim A.Ş., Türkiye’s largest publicly-listed power generation company.

The project is expected to make a huge dent in accss to electricity in Burkina Faso, a country of 24 million people where only one in five currently have access to power.

“Burkina Faso represents an important milestone in our long-term commitment to Africa,” said Cemil Kazanci, chairman of Aksa Enerji.

“Together with AFC, we are delivering critical energy infrastructure that will strengthen energy security, support economic development and improve the reliability of electricity supply for millions.”

The transaction marks AFC’s first investment in Burkina Faso, but builds on its US$150mn corporate loan facility to Aksa Enerji in 2025, which supported the company’s utility-scale gas-to-power projects in Senegal and Ghana.

This includes Senega’s new 255MW combined-cycle gas power plant designed to use domestic natural gas to deliver more reliable and lower-emission baseload power.

Collectively, these projects have established Aksa as a major partner in delivering large-scale energy infrastructure across Africa.

The Burkina Faso project is expected to transform the nation’s electricity system.

The West African state currently imports 60% of its power supply, leaving homes, businesses and industry vulnerable to supply disruptions and elevated energy costs, constraining industrialisation and economic growth.

Once operational in 2027, the power station will reduce dependence on imported electricity by more than 50% while significantly strengthening domestic generation capacity.

By delivering more reliable, lower-cost baseload power, the project is expected to improve energy security, attract private investment and create a stronger foundation for long-term economic growth, according to the AFC.

Expanding reliable electricity access is a central part of the Corporation’s mission in unlocking sustainable growth across the continent.

“Africa’s path to industrialisation and global competitiveness by 2050 depends on the infrastructure decisions we make today,” said Samaila Zubairu, AFC’s president and CEO.

“Reliable electricity is fundamental to economic transformation. Without dependable power, countries cannot industrialise, businesses cannot grow and communities cannot realise their full economic potential. Aksa shares our commitment to delivering the reliable energy infrastructure needed to power Africa’s industrial growth and long-term transformation.”

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Nesa Power gets cash boost for C&I power growth

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Egypt advances clean energy with strategic infrastructure investment

The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company managed by Ninety One, has committed a US$30mn senior secured corporate loan to Hassan Allam Utilities to support the development of the Minya 1,000MW solar photovoltaic project and 660MWh battery energy storage system (BESS) in Egypt

The financing will primarily support the flagship renewable energy project, which combines utility-scale solar generation with battery storage to strengthen grid stability while delivering reliable and affordable electricity to businesses and communities.

The Minya project is being co-developed by Hassan Allam Utilities and Infinity Power, the renewable energy joint venture between the UAE's Masdar and Egypt's Infinity. Once completed, it is expected to rank among the largest standalone solar developments in Africa.

The latest financing expands the partnership between EAAIF and Hassan Allam Utilities following a previous US$40mn facility agreed in November 2024 to support a pipeline of renewable energy developments, including the 1,100MW Suez Wind Project, which is being co-developed with ACWA Power. Together, the investments highlight EAAIF's continued role in mobilising private capital for large-scale infrastructure supporting Egypt's low-carbon transition.

Egypt continues to increase investment in renewable energy as electricity demand grows and energy security becomes an increasingly important priority. Although fossil fuels currently account for around 89% of the country's electricity generation, the government's Integrated Sustainable Energy Strategy 2035 targets renewables contributing 42% of the national power mix by 2030.

The transaction also represents an important step in EAAIF's expansion across the Middle East, North Africa and Asia. Acting as the sole lender with a primary claim in the financing, the fund is supporting local project developers while helping de-risk strategic renewable energy infrastructure in one of the region's fastest-growing clean energy markets.

The investment also aligns with PIDG's broader strategy of advancing climate-resilient infrastructure through innovative financing solutions. By supporting greenfield renewable energy projects in Egypt, EAAIF aims to accelerate private sector investment while contributing to sustainable infrastructure development across Africa and Asia.

Martijn Proos, Co-Head of Emerging Market Alternative Credit, Ninety One, the fund manager of EAAIF said: "The expansion of our partnership with Hassan Allam Utilities supports Egypt’s transition to localised renewable power. Scaling innovative financing structures alongside battery storage infrastructure strengthens grid stability and underpins sustainable growth. This transaction also provides a model for other EMDEs seeking to decarbonise while creating high-quality green jobs."

South Africa set for C&I power boost (Image source: Adobe Stock)

Nesa Power, a South African commercial and industrial (C&I) renewable energy group has secured R150mn in mezzanine debt funding from Maia Capital Partners

The money will be used by Nesa as growth capital to fund the acquisition of solar photovoltaic (PV) sites and expand its portfolio.

The company delivers integrated solar, storage and energy solutions under long-term power purchase agreements (PPAs) for clients in South Africa and beyond.

Since its inception, Nesa Power and its founders have built over 46 megawatt-peak (MWp) of solar PV generation capacity and 6.5 megawatt-hours (MWh) of battery storage, and has raised over R400mn in capital in managed funds that have invested in and currently operate over 70 solar PV C&I assets on a PPA basis.

The company is committed to providing renewable energy solutions that drive savings, ensure uninterrupted operations and reduce businesses’ carbon footprints by offering tailored renewable solutions, including on-site and off-site generation and storage.

“Securing this mezzanine facility from Maia Capital is a significant milestone for the group and reflects the strength of the business we have built,” said Mike Bleyenheuft, co-founder and CEO of Nesa Power.

He said the partnership with Maia Capital will ensure that Nesa Power continues to deliver innovative, high-quality renewable energy solutions to the C&I market.

“The energy transition in South Africa is accelerating, and with the private renewable market on a trajectory to surpass R200bn by 2030, the opportunity ahead of us is substantial. We look forward to leveraging this partnership… to drive our next chapter of growth.”

Nesa Power has built and operated C&I renewable energy assets through strategic investment partnerships and managed funds for more than a decade and has now evolved into an integrated renewable services group providing the C&I market with turnkey renewable energy services.

Through its group companies, it offers the market greenfield development, in-house design, engineering, procurement and construction management (EPCM), PPA funding, ownership and maintenance (O&M) services as well as carbon credit development services where the group has one of the first solar-based VERRA carbon grouped projects in South Africa.

Nesa Power’s co-founder and group chief investment officer, Percy Ying, said the new investment “materially strengthens” the company’s ability to execute on its growth strategy.

“The investment will also facilitate meaningful job creation and contribute positively to the broader South African economy — an outcome we are deeply committed to."

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Elmed Project advances Europe-Africa power link

Terna, the company that manages the Italian national electricity transmission grid, led by Pasqualino Monti, and STEG, the Tunisian electricity and gas grid operator, have awarded Hitachi Energy, a global leader in electrification, a contract worth approximately €770 million (approx. US$893mn) for the construction of the converter stations for the Elmed project, the first electricity interconnection between Italy and Tunisia

The awarding of the contract for the converter stations marks the completion of the procurement process for the first high-voltage direct current (HVDC) submarine link between Europe and North Africa.

The tender, published in 2023 jointly by Terna and STEG in the Official Journal of the European Union, concerned the design, supply and construction of the converter stations for the interconnection. The project is one of the infrastructure initiatives included in the Mattei Plan for Africa, aimed at strengthening economic, energy and geopolitical partnerships between Europe and African countries.

The two infrastructures will be built in Italy at Partanna, in the province of Trapani, and in Mlaabi, in the Menel Temime area of Tunisia. The link, powered by advanced HVDC technology, will have a capacity of 600 MW and extend for approximately 220 km, mainly through submarine cable, reaching a maximum depth of around 800 metres in the Strait of Sicily.

Hitachi Energy will provide the HVDC solution, combining its expertise in HVDC converter valves, its MACH digital control platform, power transformers and high-voltage switchgear. The company will also deliver system studies, design and engineering, supply, installation supervision and commissioning services. The project will leverage its experience gained through the successful delivery of some of the world’s largest and most significant interconnection projects.

Other consortium members, including D’Agostino Costruzioni Generali S.p.A. for the Partanna station and Orascom Construction SAE for the Mlaabi station, will mainly undertake civil works, electromechanical installations and auxiliary systems.

Representing a significant step towards greater interoperability between European and North African electricity systems, Elmed comes as governments and transmission system operators worldwide accelerate investment in transmission infrastructure. These developments are supporting the move towards fully electrified energy systems capable of integrating renewable energy sources at scale, strengthening cross-border interconnections and improving energy security.

Elmed is a major infrastructure project designed to strengthen energy security and integrate electricity systems between Europe and North Africa, aligning with energy transition and market integration objectives under the Integrated National Energy and Climate Plan (PNIEC).

The project, which is strategically important for Tunisia, has the full support of Tunisian authorities and forms part of the country’s national vision to strengthen energy security, promote regional electricity market integration and support the energy transition.

Elmed also supports the European Commission’s REPowerEU objectives of reducing dependence on fossil fuels and achieving decarbonisation targets, primarily through diversified energy supplies and increased renewable energy development.

With a total investment value of €1.42 billion (approximately US$1.65bn), the electricity link has received €307 million (approximately US$356 million) from the European Commission through the Connecting Europe Facility (CEF) grant programme managed by CINEA. For the first time, the European Union has financed a project involving a non-member country, highlighting the strategic importance of the interconnection.

The project is also supported on the Tunisian side by additional European and international financial institutions, including the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development and KfW.