ABN – Mainstream Renewable Power has partnered with Actis LLP to develop US$1.9 billion of solar and wind energy projects across Africa.
The joint venture is called Lekela Power and aims to provide more than 700 megawatts of wind and solar power to the continent by 2018.
It is 40% owned by Mainstream and 60% by Actis and Lekela will initially focus on South Africa, Ghana and Egypt.
Lucy Heintz, partner and head of renewable energy at Actis, said: “With soaring demand and funding constraints, Africa’s need for renewable energy is pressing.
“In South Africa for example, currently 95% of the country’s electricity is generated by coal-fired power stations.
“While the region has significant natural and fossil fuel resources a lack of long-term investment has led to a reliance on emergency and short-term diesel generation.”