Italian multinational energy firm Enel's renewables arm, Enel Green Power (EGP) and a Qatar Investment Authority (QIA) subsidiary formed a joint venture to build and operate 800 megawatts (MW) of renewable power plants in Zambia and South Africa, Enel said in a statement on Thursday.
The parties also signed an agreement in which QIA will acquire 50% of EGP's stake in projects in operation and under construction.
The initial portfolio, for an overall installed capacity of about 800 MW, consists of one plant already in full operation in Zambia, the Ngonye Photovoltaics (PV plant) with 34 MW capacity, and the recently-connected 148 MW Nxuba wind farm in South Africa.
In addition, operational renewable energy plants and four projects under construction, totaling 587 MW are included - the South African 148 MW wind farm of Oyster Bay, Garob with 145 MW capacity, Karusa with 147 MW as well as Soetwater with 147 MW capacity.
These plants hold long-term power purchase agreements and Oyster Bay, Karusa, Soetwater and Garob are expected to start operating in 2021.
'Under the agreement, EGP will be responsible for the development of each project and the joint venture has the right to invest in the projects following the successful completion of the development phase by EGP and receipt of any required regulatory approvals,' the company stated, adding at that point, the joint venture will be in charge of financing and building the new renewable projects.
By Gulsen Cagatay