Dubai-based Alcazar Energy secures $490m for second fund

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Dubai-based private energy firm Alcazar Energy has secured $490m for a second renewable energy fund backed by the US International Development Finance Corporation as the company seeks to accelerate utility-scale renewable energy projects in emerging markets.

Since first closing in November 2022, the fund has attracted eight additional top-tier investors and the new backers join a strong group of private and public investors – 80 per cent of whom have AA or AAA ratings.

“With this fund, we are well positioned to continue investing in essential renewable energy projects that advance the energy transition in places that are historically underserved by the traditional investment community,” said Daniel Calderon, Alcazar Energy Partners’ co-founder & managing partner.

The second fund has already begun building a portfolio of assets in the western Balkans region, with two wind farms totalling 456 megawatts, part of fund strategy to develop over 1.6 gigawatts of clean energy across a range of markets.

Alcazar Energy’s projects will contribute significantly to an improved energy mix and the achievement of energy transition targets whilst generating local employment opportunities.

Once operational, the fund’s investments are set to mitigate 3 million tonnes a year of greenhouse gas emissions while generating enough electricity to power more than 300,000 households, fund said.

The western Balkans is a particularly attractive as an investment destination as the region looks to wean itself off climate-damaging coal power and a reliance on fossil fuel imports from countries including Russia.

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