“A new alliance is emerging in the solar energy sector in Africa. It is a joint venture that the British company Ncondezi Energy will form with GridX Africa Development, a private power producer (PPP). The objective of the alliance is to conquer the African solar and energy storage market.
More specifically, both companies want to provide mini-grids with batteries to businesses and companies located on the African continent. The solar sector is increasingly attracting PPPs to Africa, where the demand from companies for clean and cheaper energy continues to grow. For example, the CrossBoundary Energy investment fund and Equator Energy, which design, finance and operate solar power plants, allowing companies to benefit from electricity without necessarily investing in solar power plants themselves.
In addition, “investors’ appetite is opening up to the solar mini-grid sector because they have now fully understood that small renewable energy projects are a regular source of income,” explains Michael Haworth, President of Ncondezi.
In order to enter into a definitive joint venture agreement with GridX, Ncondezi raised £1.88 million, or $2.48 million. These funds will pay a $780,000 fee to GridX, a necessary condition for the signing of a final agreement with GridX. In return, the joint venture will have access to the 15 solar mini-grid projects in GridX’s portfolio in Africa.”
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Takouleu, Jean Marie. Afrik21 16 April 2019.