Mainstream CEO Eddie O’Connor
Participants in a $117.5-million equity funding deal, announced on Thursday, say the transaction will support African-focused Lekela Power meet its goal of constructing over 1 300 MW of wind and solar capacity across the continent by 2018, including four wind farms in South Africa.
Lekela Power is a 60:40 joint venture between private equity group Actis and Mainstream Renewable Power, an Irish-linked independent power producer.
The deal, which still requires shareholder approval, was signed at the African Energy Forum, in London. It includes Mainstream, the World Bank Group’s International Finance Corporation (IFC), two funds managed by the IFC Asset Management Company – the IFC African, Latin American and Caribbean Fund and the IFC Catalyst Fund – Ascension Investment Management and Sanlam.
In addition to the four wind farms in South Africa, Lekela plans to build two wind farms and a solar plant in Egypt, as well as wind farms in Senegal and Ghana.
“Developing Africa’s power infrastructure, giving millions of people access to power and enabling the continent’s economic growth is one of the greatest challenges of our time. Renewable energy is the quickest and most cost effective solution to achieve this,” Mainstream CEO Eddie O’Connor said in a statement.