Independent power generation company Globeleq will take a 74% majority equity stake in an existing Nigerian power business CPGNL, which will be rebranded as Globeleq Power Solutions Nigeria.
The current owner of the business, the Clean Energy Group, will retain the remaining 26% stake in CPGNL.
CPGNL has a portfolio of assets that serves commercial and industrial customers mostly in the southwest of Nigeria. These include 12 operating plants with a total capacity of 58 MW, three plants under construction (9 MW total capacity), as well as about 100 MW of projects in development.
The local team's depth of knowledge will complement the existing expertise at Globeleq and provides an immediate operational presence in the country, Globeleq said in a statement issued on January 11.
"This investment demonstrates our commitment to look beyond the conventional generation methods and provide cleaner, more reliable electricity solutions directly to industries in the country.
"This all helps to produce a flow of capital that supports jobs, improves lives and aids transformation of the economy,” said MD Fabio Borba.
Globeleq's entry is posited to provide additional investment to develop and grow the existing pipeline of projects, drive operational excellence and set the business up for a low-carbon future.
Upcoming technical improvements to the existing operations and implementing new technology will focus on efficiency and reducing the carbon footprint by displacing diesel and introducing solar generation elements.