Enel Green Power (EGP) signed an agreement to form a joint venture with a subsidiary of Qatar Investment Authority (QIA) aimed at financing, building and operating renewable projects in Sub-Saharan Africa. As part of this agreement QIA will also acquire 50 per cent of EGP’s stake in approximately 800 MW of projects in South Africa and Zambia under the first phase. This would involve four projects under construction in South Africa and two plants in operation in South Africa and Zambia.
This initial portfolio would consist of the 34 MW Ngonye PV plant which is already in full operation in Zambia along with the recently connected 148 MW Nxuba wind farm in South Africa. The four projects under construction for a total capacity of 587 MW include the South African wind farms of Oyster Bay (148 MW), Garob (145 MW), Karusa (147 MW) as well as Soetwater (147 MW) and are expected to start operating during 2021. All these projects hold long-term power purchase agreements.
Under the transaction, EGP and QIA will form a new legal entity for future developments in Sub-Saharan Africa and following closure all legal entities may be merged into a sole joint venture company. Further, EGP will be responsible for the development of each project. Meanwhile, the joint venture will be in charge of financing and building the new renewable projects following the successful completion of the development phase by EGP and receipt of any required regulatory approvals.
This overall transaction is in the framework of the “Stewardship” business model. This is in line with Enel’s Strategic Plan for 2021-2023, and EGP will support each project in the joint venture, in relation to the funding, construction and operation activities.