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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.

A construction start  is expected in Q3 2021 at the 4.22MW run-of-river Bihongora Hydro  IPP in the valley of the Bihongora River in Rubavu District, Western Province – provided Covid-19 doesn’t cause further unexpected delays, East African Power (EAP) projects director John Lee Pattinson told African Energy.

Concession agreements have been signed for Democratic Republic of Congo’s Essor programme, which are expected to facilitate $100m of investment into remote grids. The approach has been mooted as a more sustainable way to promote isolated grids and more concessions could be on the way, writes Dan Marks.

Canada’s Orezone Gold Corporation has signed a power purchase agreement (PPA) with the United States’ Genser Energy, via its Genser Energy Burkina SA subsidiary, for the development of a 39.4MW hybrid off-grid power plant at its Bomboré gold project near Mogtédo in Ganzourgou province, some 85km east of Ouagadougou. Bomboré is the largest undeveloped gold deposit in Burkina Faso.

Power project monitoring and data service African Energy Live Data is pleased to give an update on new features that will be added to the platform over the next 12 months.