Dubai: Dubai-based power asset developer Access Power MEA and French renewable energy developer Eren Development launched an investment vehicle on Tuesday to fund energy projects in Africa.
“Our portfolio will definitely be more weighted to renewables than conventional power but there is nothing by mandate that prevents us from doing conventional power,” said Reda El Chaar, Chairman of Access, by phone on Tuesday.
The privately funded investment vehicle — Access Infra Africa — plans to build a portfolio of power assets in Africa worth in excess of $500 million dollars over the next three to five years.
The joint-venture has been set up with Eren Development taking a 20 per cent stake in the Access Power and a seat on the board.
In exchange for the equity stake and board seat Eren Development will put up 70 per cent of the costs to achieve its African portfolio target with the remaining 30 per cent coming from Access, El Chaar said.
“We look out at an aggressive expansion plan over the next five years that will probably show additional funding from many different sources coming into Access possibly as equity or debt or a mix,” he said.
Last month, Access won a contract to build a $17 million solar park in Uganda. It has also been pre-qualified by Egypt’s Ministry of Electricity and Energy to develop wind and solar plants.