Enel, Qatar Investment Authority sign joint venture agreement for 800 MW African renewables portfolio

Enel Green Power S.p.A. (EGP), signed an agreement with a subsidiary of Qatar Investment Authority (QIA) for a joint venture partnership aimed at financing, building and operating renewable projects in Sub-Saharan Africa. The parties also signed an agreement whereby QIA will acquire 50% of EGP’s stake in projects in operation and under construction in South Africa and Zambia with approximately 800 MW capacity.

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.

The initial portfolio, for an overall installed capacity of about 800 MW, consists of one plant already in full operation in Zambia (the Ngonye PV 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.