Article Republished By Javier Troconis
Commercial and industrial (C&I) clients across 11 African countries will benefit from 100MW solar PV thanks to a recent development funding agreement.
Climate Investor One (CIO) and Empower New Energy (Empower) will be at the helm of the new project.
Egypt, Ghana, Kenya, Morocco, Nigeria, Cameroon, Ivory Coast, Rwanda, Senegal, Sierra Leone and Zambia were chosen becuase of their high solar potential, a burgeoning energy demand and a growing need for climate resilient infrastructure. The project creates an ideal fit to leverage CFM’s expertise thanks to similarities with past projects and high scalability potential.
Empower New Energy has already established a global network of developer partnerships and pipeline projects and identified off-takers who have demonstrated interest. Empower New Energy and CIO’s Development Fund have entered into a Development Funding Agreement to create an investment opportunity for CIO’s Construction Equity Fund, which currently stands at an estimated $50 million.
Terje Osmundsen, Empower’s CEO and founder said: “CFM’s previous deal experience with C&I solar globally as well as African renewable projects in particular provides comfort to our partners and adds expertise to accelerate the roll out of our pipeline. With the platform covering diverse geographies, political environments and market dynamics, we are confident that bringing Climate Investor One onboard will streamline development to achieve the far-reaching impact we both envision.”
In 2019, 78% of enterprises across Africa experienced power outages and 41% of firms identified electricity as a major constraint to their business operation, the highest of any region in the world. The need for reliable and clean energy in Africa, especially in consideration of suppressed demand due to lack of supply, demonstrates the urgency for such initiatives.
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To address these challenges, the platform will provide renewable energy to 370,000 people, create 9,500 jobs (when the 100MW will be converted) and take the equivalent of over 21,000 cars off the road in terms of emissions avoided.
Sebastian Surie, CFM’s Regional Head for the African region, added: “over the past few years, Empower have built a strong team and an impressive project pipeline. The partnership with Climate Investor One will allow Empower to leverage off our existing C&I expertise as well as access to the capital required to ramp up project execution. We are confident that this transaction lays a strong foundation for building a leader in the African renewable energy sector.”