US-based green energy fund Fortis Green Renewables and AXIAN Energy subsidiary NEA Rwanda have acquired majority stakes in the Gigawatt Global Rwanda solar field as they replace longstanding Norwegian investors Norfund and Scatec ASA.
The plant, opened in 2015 in the Agahozo-Shalom South Village in Rwamagana, is one of the first large grid-scale commercial solar plants in East Africa. Designed to resemble the African continent when viewed from the skies, it comprises over 28,000 solar PV panels and provides energy to nearly 140,000 citizens through its 25-year power purchase agreement with the state-owned Rwanda Energy Group.
When the USD 23.7 million solar field was first launched, it was estimated that only around 15 percent of the Rwandan population had access to electricity. However, according to recent figures from the World Bank Group, this percentage has jumped up to 75% as of March 2024.
Under the deal, Fortis – which invests in renewable energy assets in Sub-Saharan Africa through its Green Fund I vehicle – has acquired 51% of the plant’s shares, while NEA Rwanda, which is part of the Pan-African AXIAN Group, has bought the remaining 49% stake. Law firm Hogan Lovells advised the buyers on the deal.
The sellers, which include Norwegian renewable energy company Scatec ASA, Norwegian development finance fund Norfund, and Norway’s largest pension company KLP Norfund, engaged in share purchase agreements with the buyers in December 2023 and February 2024, with the deal completing on 30 July. Scatec revealed in a statement that it sold its 54% equity stake for USD 1.38 million. NEA Rwanda also owns Scatec Solar Rwanda which delivers operational services to the project.
“The acquisition of shares in the Rwamagana solar power plant marks our first operation in the Rwandan market,” Benjamin Memmi, CEO of AXIAN Energy cluster, said in a statement, adding that its shared ambition with Fortis includes the provision of “sustainable and accessible energy solutions that improve the daily lives of local communities”.
Benito Grimaudo, managing director of Fortis Green Renewables, added: “We are pleased to add Gigawatt Rwanda to the Green Fund I portfolio, our second operational asset in the Rwandan market. Fortis Green Renewables is committed to the development and operation of clean and renewable energy for the African continent and this asset fits perfectly into our vision.”
In January, Fortis made its first major step into the Rwandan region with a 40% stake in a 2.6MW hydropower plant, a deal on which Hogan Lovells again advised, while Norfund bolstered its African footprint with a ZAR 80 million (USD 4.7 million) investment in South African food company Synercore Holdings last year. (End)