The British International Investment and Norway’s Norfund have entered into a joint venture with Scatec, a leading renewable energy solutions provider, to invest in Hydropower projects across Africa in a huge boost to the continent’s renewable energy.
The investment include the development of Mpatamanga Hydropower Plant, Malawi’s largest power generation site, as well as Ruzizi III, the continent’s first three nation power production plant. BII estimates that in a decade, the clean electricity provided by the Joint Venture’s assets will support the creation of at least 180000 jobs, reduce green house gases fueling climate change and meet the energy demand of over three million people.
The joint venture with Norfund, the Norwagian investment fund for developing countries, will be the largest investment in hydropower in BII’s 74-year history.
BII is expected to commit up to $200 million(about K200 billion) in capital for years to come.
Norfund is seeding the partnership with their existing share in their joint venture with Scatec and further capital commitment of up to $100m (K100 billion) over the next several years.
The investment extends and complements the existing commitments of the UK and Norwegian development finance institutions in Africa , through Globeleq, a 2.3-gigawatt independent power producer companies in which BII and Norfund are shareholders.
The two institutions are partners with HI capital, a South Africa black owned and managed renewables investment and development company.
All assets under development are aligned with the Paris agreement to reduce carbon emissions fueling global warming and demonstrate the partnership’s commitment to supporting the respective countries in their net-zero pathways.
Vicky Ford, UK Minister for Africa said: ”British International Investment is helping to deliver on the UK’s vision for the Clean Green Initiative, by providing capital to power inclusive economic sustainability across Africa.
Investing to bolster Africa’s hydropower sector is a strong step towards helping to meet the energy demands of three million people in countries most at risk of the impacts of the climate emergency.
Through these projects, UK finance will enable job creation and drive clean productive growth across the continent.”
Bill managing director Chris Chijiutomi said: Hydropower is critical for providing clean baseload and peaking power, especially in landlocked countries in Africa, as the continent countries transition away from fossil fuels towards a net-zero future.
”BII along with its partners will play a key role in providing inclusive and sustainable finance to support hydropower in sub-saharan Africa. It is great that we are partnering with Norfund and Scatec in this partnership.
Mark Davis, executive vice-president of Clean Energy in Norfund, said the expansion of dispatchable renewables is critical to support the integration of more wind and solar energy in Africa.
”We are delighted to be able to join forces with BII in our partnership with Scatec, to further scale up our ability to provide clean and affordable energy through hydropower, enabling economic development and job creation, while avoiding emissions,” he said.
Scatec chief executive officer Terje Pilskog said partnership is a testimony to the importance of hydropower across AFrica.
Source: The Nation_30th June 2022_By GODFREY IVUDRIA-BUSINESS WEEK