Africa-focused Lekela plans to spend $2 bln to double renewables capacity

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LONDON, Nov 12 (Businesshala) – Africa-focused renewables developer Lekela plans to invest nearly $2 billion to more than double its renewable energy capacity on the continent over the next five years, its chief executive officer told Businesshala. told.

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Lekela, one of Africa’s largest renewables companies with a focus on solar and wind power, also plans to selectively expand beyond its existing markets, which include South Africa, Egypt, Senegal and Ghana, and batteries Have to invest in new opportunities like storage, green. Hydrogen and desalination plant.

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“Today, we have operations with about 1,000 MW and we plan to install 1500 MW in the next five to seven years. This will require a total investment value of about $2 billion,” Chris Antonopoulos said in a call. told Businesshala in an interview.

Financing will come from equity and debt, mostly with multilateral development banks and export credit agencies, as commercial banks in Africa typically do not offer long-term financing for such deals, he explained.

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He complained that Africa, with a population of 1.3 billion, of which 600 million have no electricity, is receiving far less investment than other parts of the world, while suffering disproportionately from the effects of climate change.

With the population expected to grow significantly in the coming years, “there must be more investment to help drive sustainable economic growth, implement a just and equitable transition, and expand renewable energy across the continent”. , They said.

A study by the University of Oxford, published earlier this year, showed that renewable energy is expected to account for less than 10% of Africa’s electricity generation by 2030, indicating that the continent’s enormous wind and solar power potential could be catastrophic. Unlocking requires massive investment.

Funding the transition to clean energy is impossible for many African countries, with the Brookings Institution, a Washington-based think-tank estimating that one in five African countries have enough money to cover state costs. There is not enough revenue. (Reporting by Marva Rashad; Editing by Andrei Khalip)

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