Dubai-based Access Power launches finance vehicle aimed at African energy projects



Dubai-based Access Power MEA and France’s renewable energy developer Eren Developpement launched a new financing vehicle, the first of its kind to be deployed solely focusing on African energy projects.

Not only is this the largest privately funded structure of its kind, but it tackles an area of deployment that little to no focus is given: early-stage development. There is more money available for projects in Africa than there are projects, according to Reda El Chaar, chairman of Access.

He referred to schemes like US president Barack Obama’s Power Africa initiative and others like Climate Investment Funds.

The projects will have capacity of about 350 megawatts built over the next three to five years, Mr El Chaar said. About 1,000 megawatts is enough to power 2 million European homes.

The projects will be predominantly in renewable energy in sub-Saharan Africa, Egypt and elsewhere in North Africa, he said.

The companies will have a minimal portfolio of US$500 million to finance on a principle investment basis. The development part of most projects usually comprises 7-10 per cent, so the new funding vehicle will put around $40-50m at risk.

This agreement has Eren acquiring an equity stake in the UAE firm and also having a seat on the board of Access.

The partnership will help increase renewable projects in developing countries where “renewable energy represents a competitive answer” to growing local energy needs, said David Corchia, the chief executive of Eren.

* With Bloomberg News

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