Engie Eyes Consolidation in Africa’s Renewable Energy Market
TLDR
- Engie SA, leading a $1 billion acquisition of renewable energy assets from Actis LLP in Africa, anticipates further consolidation in the continent's renewable energy sector.
- Engie plans to develop a pipeline of seven gigawatts of projects in Africa while divesting stakes in two solar projects in Senegal to refocus on core markets like South Africa, Egypt, and Morocco.
- The company's strategic shift aims to capitalize on favorable policies for emission reduction and strong legal protections in key markets.
Engie SA, the French utility that led a $1 billion acquisition of renewable energy assets from Actis LLP in Africa last year, expects further consolidation across the continent’s renewable energy sector.
While the company focuses on integrating its new assets, it plans to develop a pipeline of seven gigawatts of projects in Africa, according to Mohamed Hoosen, managing director for Asia, the Middle East, and Africa.
Engie plans to divest its stakes in two solar projects in Senegal, totaling about 60 megawatts, as it refocuses on its core markets of South Africa, Egypt, and Morocco. These markets offer favorable policies for emission reduction and strong legal protections.
Key Takeaways
Engie’s acquisition of BTE Renewables with Meridiam SAS underscores the trend of large renewable companies strengthening their positions in Africa, a market also attracting new entrants. Old Mutual is in discussions with companies like BlackRock to sell a stake in one of Africa’s largest renewable energy businesses. In addition, recent acquisitions by Africa Finance Corporation, Infinity Group, and Copenhagen Infrastructure Partners reflect the growing investment interest in the sector. Consolidation is likely, as larger renewable energy companies have advantages in acquiring equipment and developing projects at scale.
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