Infinity Power To Announce Completion Of Biggest Renewable Deal

Lekela Currently Operates 1 gigawatt (GW) Of Wind Power

Report mentioned, Lekela currently operates 1 gigawatt (GW) of wind power projects in South Africa, Egypt and Senegal, and has a 1.8 GW project pipeline, which are in various stages of development.

The transaction was funded through equity investment from shareholders and debt from Absa Corporate and Investment Banking (Absa CIB) and Mauritian Commercial Bank (MCB).

According to the report, Infinity Power was established in 2020 to develop utility-scale and distributed solar energy and wind power projects in Africa. By developing renewable projects in Africa, Infinity Power aims to improve energy access across the continent, while boosting economic development, and creating much-needed jobs, particularly in remote areas. Infinity Power’s total capacity of operational projects is 1.3 GW, which equates to a reduction of more than 3 million tons of CO2 emissions per year using conventional power generation. The company also has 13.8 GW of projects in the pipeline at different stages of development.

Established in 2015, Lekela Power was previously owned 60 percent Actis, a global investor in sustainable infrastructure, and 40 percent by a consortium, led by global wind and solar company Mainstream Renewable Power, called Mainstream Renewable Power Africa Holdings (‘MRPAH’).

Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President-Designate, and Chairman of Masdar, said, “Through our investment in Infinity Power Masdar is able to extend its reach across Africa and support developing nations on their clean energy transitions. This acquisition will give Infinity Power greater scale to deploy practical climate solutions that deliver measureable outcomes, in line with the COP28 objective of being inclusive, transparent, pragmatic, and results oriented.”

Mohamed Jameel Al Ramahi, CEO, Masdar, said, “This landmark acquisition of Lekela Power will position our Infinity Power joint venture as the market leader in Africa, and is also recognition of the continent’s tremendous renewable energy potential. Greater access to clean energy will enable African nations to develop their economies sustainably while meeting their climate objectives – in alignment with COP28’s goal of delivering inclusive climate progress.”

Africa’s installed renewable capacity is set to grow from 54 GW in 2020 to more than 530 GW by 2040, according to the International Renewable Energy Agency (IRENA), with solar PV soaring to 340 GW, and wind rising to 90 GW.

Increasing renewable energy resources will also drive energy access, with almost half of Africa’s population still without access to electricity.

Report further mentioned, Mohamed Ismail Mansour, Chairman, Infinity Power said, “Having successfully finalized the Lekela acquisition, we will build upon this milestone to reach our target of installing and operating 2 GW of greenfield projects by 2025. With this transaction, we have delivered on the promise made during COP27 of being the fastest-growing renewable energy company in Africa.

“We continue to drive efforts that reduce carbon emissions, increase renewable energy sources, and develop efficient energy solutions for the entire region, in order to achieve our vision of providing clean, reliable and affordable electricity access to people in underserved communities across Africa.”

Cantor Fitzgerald, Absa CIB, Norton Rose Fulbright, Al Kamel Law, Ernst & Young and AFRY advised Infinity Power on the transaction. Absa CIB and MCB acted as the Mandated Lead Arrangers on the acquisition financing facilities.