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The World Bank’s International Finance Corporation (IFC) and France’s EDF Group have signed an agreement to co-operate in the development of off-grid electrification in emerging markets, predominantly in sub-Saharan Africa. IFC said the pair would develop “affordable and sustainable solutions for rural electrification”, working together to source financing for potential projects, share expertise and explore co-investment opportunities, with a joint investment vehicle on the cards. A pilot project is being put in place in Benin, where 25,000 people will be supplied with power using solar and diesel-powered hybrid networks and two biomass-fired power plants.

The coronavirus pandemic has so far been characterised by the dramatic speed of infection and a rapid escalation of policy responses by governments. While Africa has so far been less affected than Europe, South Africa’s President Cyril Ramaphosa on 23 March announced a 21-day lockdown to begin on 26 March, and it is likely that many more countries will follow. The continent has had at least 2,000 recorded cases, mostly among people travelling from Europe, and almost certainly many more in reality.

Energy and water resources minister Oluniyi Robbin-Coker is trying to mobilise limited resources to build generation capacity and overhaul a decrepit transmission and distribution system. With demand from the mining industry rising and access to power at just 6%, the government has set an ambitious target of installing 1GW of capacity in the next seven years. Sierra Leone has 92MW of installed capacity, including the 50MW Bumbuna dam inaugurated in November 2009, though the country has an estimated 2GW of hydro potential.

London Stock Exchange-listed Ncondezi Energy Ltd announced on 23 October that it has signed a subscription agreement and shareholders’ agreement with GridX Africa Development and GridX Africa AssetCo to finance development of a 400kWp off-grid solar plant with a 228kW, 912kWh battery for a hotel in Mozambique. A 165kVA diesel generator will provide back-up power. Commissioning is expected within eight months and the plant will generate around 660MWh/yr.

Two very different communities are coming closer together to see if they can enact radical change in regions of sub-Saharan Africa that have little realistic chance of being connected to secure electricity grids. Already on the ground are the off-grid pioneers – often supported by individual donors and NGOs, philanthropic and other impact investors, such as the Shell Foundation – who have usually focused on small-scale projects.

US-based investment firm Persistent Energy Capital has injected $1m into Zonful Energy, one of Zimbabwe’s fastest-growing off-grid energy companies. The partnership will give Zonful access to Persistent’s technical and advisory support in finance, financial management and information technology (IT). Persistent’s partner company Catalyst is already working with Zonful to build IT infrastructure to support the company’s ambitious growth plans. The has enabled Zonful to unlock a matching grant of $1m from the Africa Enterprise Challenge Fund (AECF).

France’s Engie has agreed to buy Uganda-based pay-as-you-go solar provider Fenix International. Fenix chief executive Lyndsay Handler told African Energy Fenix would retain its identity but the partnership would offer economies of scale that would significantly reduce the cost of equipment and financing. She said solar home systems (SHS) were a very working capital-intensive business and companies like Fenix and M-Kopa paid high interest rates for their debt. Combining the two companies’ purchasing power for solar equipment would cut costs.

Genser Energy Ghana Ltd announced in December that it had reached financial close on a $366m financing agreement that will fund the expansion of its business in Ghana. The transaction funds the expansion of existing plants and the company’s gas pipeline network, as well as new projects that have signed power purchase agreements.The package comprises a $230m syndicated loan alongside a mezzanine loan and preference shares. South Africa’s Standard Bank and Nedbank, the Development Bank of Southern Africa and existing lender Barak Fund SPC Ltd financed the senior loan.

The Mozambican government has issued a general procurement notice for a project to support reforms to its renewable energy policy and regulatory framework. The government has received a grant from the Sustainable Energy Fund for Africa, which is managed by the African Development Bank. The project seeks to put in place a feed-in tariff regime and a mini-grid policy and regulatory framework. Work to be tendered includes the production of standard power purchase agreements for renewable energy projects smaller than 5MW and medium-sized projects of 10MW; guidelines for connection to the distribution network of small renewables projects; and guidelines for renewables investors.

The United Nations High Commissioner for Refugees (UNHCR) has launched prequalification for a tender to develop small solar PV systems to power its operations across three countries.

ZIZ Energie has started civil works for a 2.5MW solar and 5MWh storage mini-grid in Mongo in central Chad. Work on the hybrid project began in October 2020 and the project is expected to come online by Q2 2021, supplying the city of 70,000 people 500km east of N’Djamena. ZIZ told African Energy it was the first company to use a new licensing regime introduced by law No 036 of August 2019.

Brighter Life Kenya 1 Ltd (BLK1), a local currency off-balance sheet financing vehicle servicing solar home system (SHS) company d.light design inc, has been expanded to $127m following a $15m investment by Norfund.

Plastics manufacturer Miniplast Ltd has begun commercial operations at a 700kWp grid-tied solar PV plant developed and built by Stella Futura at Spintex Industrial Area in Accra. The plant is funded by Empower New Energy, the owner and asset manager, which sells power to Miniplast through a 20-year power supply agreement. 

Engie has merged its Africa business into its Middle East, South and Central Asia, and Turkey unit. The French utility said it would focus on just Egypt, Morocco, Senegal and South Africa, where it already has sizeable operations. The combined business unit will be headquartered in Dubai and overseen by Sébastien Arbola.

As African Energy editor Thalia Griffiths leaves to explore new opportunities, colleagues asked for her take on developments after 23 years leading the publication. For all the tragedies like the current Ethiopian conflict, she sees real hope for a better future on a continent where, in many places, governance has improved and previously marginalised populations are becoming empowered to enact positive change.