A UK private equity firm has hinted at plans to inject over $250 million into Africa energy market, Bloomberg has reported.
Denham Capital Management LP has partnered with Neo Themis, a power supplier based in Morocco to carry out mega renewable projects in Africa.
The firm which is currently developing about 400 megawatts of renewable energy and gas-fired projects across Africa, targets to have 1 gigawatt under construction by 2019.
The firm is already working on a hydropower plant in Ivory Coast and a solar power project in Nigeria. It seeks to have projects in Kenya and Madagascar in the near future.
Scott Mackin, managing partner and head of Denham’s power team told Bloomberg in London that they work in emerging markets where there is real need for power.
“Africa is a great example of this, there is so much capital looking for good projects in Africa. It’s definitely a seller’s market.”
Extremes in Africa energy market
As much as possible, says Mr Scott they try to avoid markets with too much subsidies or without government support.
“We seek opportunities in between these two extremes. We have already won projects in renewable energy in Brazil and South Africa and we are generally looking to lock in long-term contracts for power sales,”