Dubai-based power developer Access Power MEA has partnered with French renewable energy developer EREN to launch an early stage investment vehicle for African power projects.
The deal comes at a time of renewed interest in African renewable energy projects, with the US-Africa Clean Energy Finance (ACEF) initiative, a fund designed to support early-stage projects in sub-Saharan Africa, recently reaching its initial $20 million fund commitment.
Under the Access Infra Africa vehicle, Access and EREN will implement a development plan to create a portfolio of power assets in Africa worth over $500 milllion.
EREN will also acquire an equity stake in Access and be granted a seat on the company’s board.
“Africa’s energy sector and wider economy could be transformed by the billions of dollars of financing available for Africa. However, this funding cannot have an impact without well-resourced and experienced developers willing to take early-stage project risk and turn good concepts into bankable projects,” said Reda El Chaar, chairman of Access.
On January 4, Access Infra Africa was pre qualified by the Egyptian Ministry of Electricity to develop large scale wind and solar power plants as part of the country’s renewable energy procurement programme.
Access was also awarded a contract to build, own and operate a 10 MWp solar photovoltaic facility in Soroti, Uganda in December.
“Access Infra Africa perfectly illustrates EREN’s strategy of developing renewable projects in areas of the world where renewable energy represents a competitive answer to growing local energy needs, such as Africa,” said David Corchia, CEO of EREN Développement.