Green Energy

Public Sector

Eastern Africa has the good fortune of high green energy resource availability, particularly geothermal, solar, biomass, wind and hydro.

Recent years have seen an increasing use of private finance for infrastructure projects in Sub Saharan Africa. In the last five years, the energy sector has led in Public Private Partnerships (PPPs) deals, accounting for 78% of projects. As a result, there is considerable experience in developing and executing power projects in the region.

There are substantial opportunities in the region; especially projects that help address low cost base load needs.

Throughout the region, the power sector is regulated and bringing a project to fruition requires careful navigation and understanding of key success drivers.

In a typical project development process, Utility Partners will:

  • Prospect, identity and prequalify possible projects. Preliminary project sizing and costing.
  • Map process to closure; engage key stakeholders and decision-makers; identify possible obstacles and establish success factors.
  • If a project meets the threshold of an executable bankable project, seek necessary authorisations to finance and build the project. At the same time, engage with investment partners and agree on a possible framework of participation.
  • Set up Special Purpose Vehicle (SPV) Company and other legal arrangements to develop the project.
  • As long-term partners, take part in the project equity and continue to provide its unique expertise throughout the project life.

Private Sector

In a number of the countries, some energy consumers have complained of high power costs and an unstable grid as competitive barriers. In Kenya, for example, the 2018 electricity cost was 0.16 USD/Kwh, compared to: Egypt (0.02); Ethiopia (0.06); Nigeria, China and India (0.08); Tanzania (0.10).

There is therefore a sizeable market for large private sector customers- such as large industrial, commercial and residential estates. For such, we provide and run the power infrastructure (including existing assets), relieving them of the capex burden as they run their core business.

Together with our investment partners, we provide our private sectors customers with a solution that ensures that do not have to spend resources on operating electric power infrastructure or invest in new assets.

Talk to us to find out more