href=”www.access-power.com”>Access Power MEA, a power project developer focused on the Middle East and Africa have teamed up with EREN, a renewable energy firm, to form Access Infra Africa (AIA), an investment vehicle that will be dedicated to investing in the early stage development of power projects in Africa.
The partners say AIA will be the largest privately funded vehicle of its kind as they intend to implement an ambitious development plan leading to the realization of a portfolio of power assets in Africa worth over $500 million.
“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 Developement, in a statement sent to Ventures Africa.
Under the agreement, EREN will acquire a strategic equity stake in Access and a seat on the board of Access. “We are thrilled to bring our global expertise in the field of renewable energy to Access’ world-class team and strong regional presence,” Corchia added.
Reda El Chaar, Chairman of Access, described EREN and its founders as “global pioneers of renewable energy”. “We are delighted to be joining forces to develop sustainable and affordable power assets across Africa, which today houses seven out of the world’s ten fastest growing economies.”
Africa to get value for huge investment in power
Numerous power projects and investments have been springing up across Africa, the hallmark of which was at the 2014 Power Africa summit where political and business leaders of the continent gathered in Washington with their counterparts in the United States of America to strike business deals geared towards overcoming Africa’s power challenges. El Chaar explained that while Africa’s energy sector and the wider economy could be transformed by the billions of dollars of financing available for Africa, such investments cannot have an impact without well-resourced and experienced developers willing to take early-stage project risk and turn good concepts into bankable projects.
On 4th January 2015, the Access Infra Africa consortium was prequalified by Egypt’s Ministry of Electricity to develop large scale wind and solar power plants as part of the first round of Egypt’s renewable energy procurement program. In December 2014, Access was awarded the contract to build, own and operate the first solar power plant in Uganda, a 10 MWp solar photovoltaic facility in Soroti, Northeastern Uganda. Once complete, the plant will be the second largest privately owned solar PV project in Africa excluding South Africa.
