Energy | - Part 2

Denham to Steer Clear of Coal-Fired Power in Africa Expansion

LAGOS, Capital Markets in Africa: U.S. private-equity firm Denham Capital Management LP will shun coal-fired power as it looks to African energy projects for investment. “We’re not targeting coal for any new investments,” Justin DeAngelis, Denham’s managing director and power-deals team leader, said Wednesday in New York. “Coal power is out of favor for people who want to own power plants.” The stance of Boston-based Denham, with $8.4 billion under management, echoes that of other investors deterred by…

Kenyan Geothermal Gets $60 Million From African Development Bank

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NAIROBI, Capital Markets in Africa: The African Development Bank will lend $60 million to finance a geothermal power project in Kenya. The funds will go to state-owned Geothermal Development Co. to buy three drilling rigs, according to Gabriel Negatu, regional director at the Abidjan, Ivory Coast-based financial institution. Kenya “has enormous potential in geothermal power capacity which it has not fully exploited,” Negatu said in an interview in Nairobi. The country has been tapping geothermal power in…

South Africa’s Renewables Market Is the World’s Fastest Growing

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Johannesburg, Capital Markets in Africa: South Africa’s renewable industry is looking good for project financiers. The African country’s green power sector had the highest growth year-on-year globally for asset finance at 300 percent, according to Moody’s Corp. It drew $4.5 billion in 2015, the credit rating company said in a report on Friday. It highlighted a drop in renewable electricity prices, the growth of independent power producers and increased participation of institutional investors as credit positive…

Infrastructure | Engie Seeks to Tap Off-Grid Solar to Power Millions in Africa

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LAGOS, Nigeria, Capital Markets in Africa: Engie SA is seeking to become a player in the off-grid solar industry, one of the first major utilities to work directly in that niche of the energy system. “It could be a sizable part of the market,” Bruno Bensasson, chief executive officer of Engie’s Africa business unit, said in an interview in London. “Solar home systems are part of an energy proposal for countries, as well as national grids. We…

Infrastructure | Mainstream Raises $118 Million for African Wind and Solar Farms

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LAGOS, Nigeria, Capital Markets in Africa: One of Africa’s biggest renewable-energy developers raised $118 million to expand its footprint in the continent’s fast-growing markets for solar and wind power. Mainstream Renewable Power Ltd., a Dublin-based clean-energy developer, raised the funds to help finance the $1.9 billion Lekela Power joint venture, which plans to install more than 1.3 gigawatts of renewable electricity across Africa by 2018, Chief Executive Officer Eddie O’Connor said. “It’s high risk, so…

Investment | Green Power Investing Brightens Returns in Ailing South Africa

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Johannesburg, South Africa, Capital Markets in Africa: A program that’s making South Africa the top destination for green-power investments across the continent and the Middle East is not only easing an electricity crisis: returns are beating those in bonds and stocks. The Renewable Energy Independent Power Producer Procurement Program secured about $12.5 billion since 2011 and will attract another $35 billion by 2020, according to data compiled by Bloomberg New Energy Finance. With state-guaranteed contracts to buy the power over…

“Price Modulation” of the Downstream Sector …Taking the Bull by the Legs

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LAGOS, Nigeria, Capital Markets in Africa: The downstream petroleum sector on 11th May, 2016 received a major policy turn that seemed to have altered the age long dynamics of the industry as the Nigerian National Petroleum Corporation (NNPC) announced the removal of petroleum subsidy and provided new pricing guidelines, designed to be cost reflective in line with market dynamics. Whilst the new policy has shifted off the Government, a major burden of subsidy payment which…

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