Globeleq's Menengai project advances

Globeleq has finalised an agreement with African Trade & Investment Development Insurance (ATIDI) for the provision of a payment guarantee to the 35 MW Menengai geothermal project in Kenya’s Nakuru County

The facility — issued via ATIDI’s Regional Liquidity Support Facility (RLSF) — covers the risk of non-payment by the Geothermal Development Corporation (GDC) and Kenya Power and Lighting Company (KPLC).

With the guarantee in place, the project and its lenders – the African Development Bank (AfDB), the Eastern and Southern African Development Bank (TDB), and the Finish Fund for Industrial Cooperation (Finnfund) – get enhanced payment security ahead of the project’s scheduled commercial operations date.

“Signing the RLSF agreement is a major milestone for our Menengai project, significantly enhancing the project’s risk allocation,” said Edouard Wenseleers, managing director, business development and head of East Africa at Globeleq.

Once operational, the Menengai project will deliver clean and affordable baseload power to the national grid supply and significantly contribute to the Kenyan government’s goal of a clean energy mix by 2030.

Wenseleers called it an honour for Globeleq to contribute to the issuance of Kenya’s first RLSF policy in Kenya through the Menengai project.

“We hope this will pave the way for more renewable energy IPPs to benefit from this innovative instrument in the country.”

To date, ATIDI’s RLSF has supported nine renewable energy projects across four African countries, enabling 181.95 MW in new renewable energy capacity and mobilising US$324mn in total financing.

“Whilst we have supported several projects in the region, this marks the first RLSF policy issued in Kenya, as well as the first in support of a geothermal project,” said Obbie Banda, senior underwriter and RLSF coordinator.

“This milestone confirms the bankability of the RLSF product for a leading project developer and for the DFI lenders involved in this project — it also demonstrates our commitment to moving from concept to execution of our innovative instruments."

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Globeleq to support Zambia hydro project

A milestone in Kenya's energy transition

Globeleq keen on Zambian hydro sector

Power developer Globeleq has signed a share purchase agreement with Norfund, the Norwegian development institution, for the proposed acquisition of a 51% equity stake in Zambia's Lunsemfwa Hydro Power Company (LHPC)

Based in Kabwe, in Zambia’s Central Province, LHPC operates two hydroelectric power plants totaling 56MW and is currently constructing a 20MW solar PV project.

The remaining 49% is owned by Zambian-based infrastructure investment group, Wanda Gorge Investments.

LHPC sells power to the Zambia Electricity Supply Corporation (Zesco) through a power purchase agreement (PPA) and a portfolio of private customers, which include Copperbelt Energy Corporation (CEC) and Jubilee Metals. It also holds a Southern African Power Pool (SAPP) electricity trading license.

Jonathan Hoffman, Globeleq’s CEO, said the agreement marks a pivotal step in the company's Zambian energy market entry.

“We are excited about this opportunity to enter the Zambian market," he said.

"LHPC’s established team, operations and trading capabilities combined with our extensive experience in Africa, create a strong platform to support Zambia’s broader energy objectives and deliver solutions to a range of energy consumers in the region.”

The acquisition also marks the company’s first investment in hydropower in Africa, further enhancing its diversified renewable portfolio which includes solar, wind, battery energy storage (BESS), hybrid solar plus BESS, and geothermal power plants.

Zambia is a priority country for Globeleq’s growth strategy, where the company is leading the development of a 400MW+ greenfield portfolio of solar, wind power, BESS and hybrid projects, including its 54MWp Kafue solar project awarded under the GETFiT Zambia programme.

The completion of the LHPC transaction is expected to be finalised in the latter half of 2025.

Øystein Øyehaug, Norfund investment director, said Globeleq's involvement would unlock LHPC's long-term growth potential.

"With more than 20 years of experience operating in Africa, we are confident that Globeleq is the right fit to lead the LHPC into its next chapter."

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Guinea's Bankan project advances

Australia’s Predictive Discovery, the developer of the Bankan gold project in Guinea, has outlined how it plans to power the proposed mine site

It will incorporate a hybrid model, built around a thermal power source, as well as an additional solar energy plant, an increasingly common set up for remote mine sites in recent years.

“Power for the project will be generated through a heavy fuel oil (HFO) power plant in combination with a solar farm,” the company reported after announcing the results of its Definitive Feasibility Study (DFS) on Bankan.

It highlights the continued pull of HFO power plants as a dependable source of electricity for critical and remote mining and industrial applications in West Africa.

The full capital cost of the entire Bakan project, which will include open-pit and underground mining, is estimated at US$463mn, which includes pre-production operating costs, indirect costs and a US$34mn contingency.

Construction is expected to take two years, commencing in Q2 2026, enabling the start of commercial production in Q2 2028.

Andrew Pardey, Predictive Discovery’s managing director, said the Bankan project will be developed into “one of the largest gold mines in West Africa in a generation.”

Furthermore, he said Bankan will generate extensive benefits for the host country, with government revenues totalling approximately US$2bn across the mine’s life plus potential upside from current gold prices and future mine life extensions.

The project will also create significant job opportunities, with a peak construction workforce of around 1,500 personnel and an operational workforce of 1,100 personnel.

The next task for Pardey and his team is to secure the Exploitation Permit from the government, and then commence the financing process to fund the project, as well as advance talks with contractors ahead of tendering for work and equipment.

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Africa is strengthening its energy regulation (Image source: Adobe Stock)

Senegal and Kenya have topped the list of Africa’s leading electricity regulators in a new report highlighting rising standards

The two countries claimed the top spots in the African Development Bank’s (AfDB) 2024 Electricity Regulatory Index (ERI), which evaluates regulatory frameworks across 43 African states.

Uganda, Liberia and Niger round out the top five performers.

Niger registered one of the biggest gains, underlining the strong impact of sustained reforms and political commitment to power sector development, the AfDB noted in a statement.

“The 2024 ERI shows that Africa’s regulators are stepping up,” said Dr Kevin Kariuki, AfDB vice-president for power, energy, climate and green growth.

“We are now seeing stronger institutions delivering real results for utilities and consumers. This shift is critical if we are to achieve Mission 300 and connect 300 million people to electricity by 2030.”

The ERI index evaluates three dimensions: regulatory governance, regulatory substance, and regulatory outcomes (ROI).

The latter category, ROI, which tracks service delivery and utility performance, recorded the most substantial improvements across the continent.

“Now in its seventh edition, the ERI shows strong momentum toward more effective, transparent and impactful regulation, with real-world results beginning to emerge,” the AfDB noted.

The report highlights “standout progress” in Kenya and Senegal in areas such as tariff reform, regulatory outcomes and utility performance.

Crucially, progress is being recorded across the continent with average scores drifting upwards in recent years, and even the lowest-ranked countries seeing imporced scores.

The ROI surged from roughly 0.40 in 2022 to 0.62 in 2024, showing that reforms are delivering tangible service improvements on the ground, the AfDB noted.

Priority areas for enhancing regulatory effectiveness include areas such as strengthening regulatory independence, enhancing accountability mechanisms, promoting transparency and predictability and improving stakeholder participation.

Wale Shonibare, director for energy financial solutions, policy and regulation at the AfDB said the ERI 2024 index tells a hopeful story.

“African countries are not just passing laws — they are implementing them. Regulators are transforming from administrative bodies into strategic institutions with measurable influence. However, challenges related to independence, financing, and enforcement persist.”

Launched in 2018, the ERI is a diagnostic and policy tool used by governments, regulators and development partners to identify gaps, track progress, and prioritise reform efforts.

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