Mainstream and Actis sign agreement for sale of African IPP Lekela
- Mainstream Renewable Power and Actis have signed an agreement to sell Lekela Power, Africa’s largest pure-play renewable energy IPP, to Infinity Group and Africa Finance Corporation (AFC).
- This planned exit reflects the successful culmination of Mainstream and Actis’ partnership strategy for Lekela, with the platform consisting of a leading management team, over 1 GW of fully operational assets, and significant growth prospects.
Mainstream Renewable Power, the global wind and solar company, and Actis, a global investor in sustainable infrastructure, have signed an agreement to sell the Lekela Power platform to Infinity Group and AFC, subject to regulatory approvals and customary closing conditions.
Established in 2015 to deliver clean, reliable energy across Africa, Lekela has become the African continent’s largest pure-play renewable energy Independent Power Producer (IPP).
The platform consists of over 1 GW of fully operational wind assets, including five operational wind farms in South Africa (624 MW), one operational wind farm in Egypt (252 MW), one operational wind farm in Senegal (159 MW), as well as development opportunities in Ghana, Senegal and Egypt.
The platform was established as a joint venture between Actis (60%), and a Mainstream-led consortium called Mainstream Renewable Power Africa Holdings (MRPAH) (40%).
The planned exit reflects the successful culmination of the parties’ partnership strategy for Lekela, following a comprehensive value creation approach.
Mary Quaney, Group Chief Executive, Mainstream Renewable Power, said: "There has never been a more critical time to accelerate the global transition to renewable energy, for the health of both our planet and our communities.
"Much of Africa is acutely vulnerable to climate change and we are proud to have worked with Actis, as well as the communities, governments, project lenders, equipment suppliers and contractors across Africa, to deliver over 1 GW of operational wind power that will continue to have a positive impact for decades to come.
"Our vision is of a world electrified by renewable energy. Together with our strategic shareholders Aker Horizons and Mitsui, we are well positioned to lead and truly accelerate the transition to renewables in South Africa, across the African continent and in markets globally."
Lucy Heintz, Partner and Head of Energy Infrastructure, Actis, said: "This exit highlights the hands-on approach we take at Actis as builders and operators of leading energy platforms of scale, delivering positive impact.
"We’re proud to leave Lekela Power strongly positioned for its next phase of growth as an acknowledged sustainability leader supplying much-needed clean energy to communities across Africa, building on our Net Zero commitment.
"With our dedicated sustainability team, we have focused on an active ownership approach allowing us to deliver deep commitment to local African communities and environmental protection initiatives, investing behind the Energy Transition and delivering financial performance for our investors."
Throughout the development, construction and operations journey, Mainstream and Actis have delivered on their guiding and robust sustainable development standards, guided by close engagement with local communities.
With the support of Mainstream and Actis, Lekela has implemented the highest international standards in health, safety and environmental protection. Lekela has also developed a deep commitment to local development and continues to operate a community investment programme that finances entrepreneurship, educational and environmental protection initiatives.
In June, Mainstream and Actis announced the completion of the sale of its Chilean joint venture, Aela Energía, to the Canadian-listed developer Innergex Renewable Energy. The Aela Energía transaction was another milestone for Mainstream in accelerating and delivering the transition to renewable energy.
Clifford Chance and Citibank advised on the transaction.
ABOUT LEKELA POWER
The Lekela platform is owned by Actis (60%) and a Mainstream-led consortium (40%) called Mainstream Renewable Power Africa Holdings, comprising:
- Mainstream Renewable Power
- IFC, the IFC African, Latin American and Caribbean Fund (ALAC) and the IFC Catalyst Fund, two funds managed by IFC Asset Management Company
- Rockefeller Brothers Fund
- Ascension Investment Management