Fortis Green Renewables in Rwanda solar power deal
Fortis Green Renewables in Rwanda solar power deal
Fortis Green Renewables Investment Management and AXIAN Energy have announced the acquisition of stakes in Gigawatt Rwanda.
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Fortis Green Renewables Investment Management, a renewable energy investment firm currently investing out of its Green Fund I, and AXIAN Energy, a division of the pan-African Group AXIAN, have announced the acquisition of stakes in Gigawatt Rwanda, a solar power plant.
As part of this transaction, Fortis Green Fund I Rwanda Holdings Ltd holds 51% of the shares in Gigawatt Global Rwanda Ltd, while NEA Rwanda Ltd, a subsidiary of AXIAN Energy, holds the remaining 49%. NEA Rwanda Ltd also owns 100% of the shares in Scatec Solar Rwanda and provides operational and maintenance services for the project through its expertise.
Fortis Green, Axian Energy and the seller group – comprising of Scatec ASA, Norfund, and KLP Norfund – signed share purchase agreements in December 2023 and February 2024, which initiated the acquisition. The transaction was completed on 30 July 2024. Hogan Lovells was the legal advisor for the buyers.
For Fortis Green Renewables, this investment represents a significant step in the development of Green Fund I, as it provides access for investors to another stable and steady operational asset. For AXIAN Energy, the acquisition marks its entry into the Rwandan market and reinforces its commitment to energy inclusion in Africa.
"We are pleased to add Gigawatt Rwanda to the Green Fund I portfolio, our second operational asset in the Rwandan market. Fortis Green Renewables is committed to the development and operation of clean and renewable energy for the African continent and this asset fits perfectly into our vision," says Benito Grimaudo, managing director of Fortis Green Renewables Investment Management.
The solar power plant, located 60km east of Kigali, with a capacity of 8.5 MW DC, began operations in 2014 and provides power to nearly 140,000 beneficiaries via its 25-year power purchase agreement with the Rwanda Energy Group. With more than 28,000 solar PV panels on a 50-acre site, the project was the first grid-scale solar power plant connected to the region's power grid, and has improved access to clean and renewable energy in Rwanda. Project debt has been and continues to be provided by FMO and the Emerging Africa Infrastructure Fund (EAIF).
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