New Africa Power to develop hydro projects in Zambia
Participation in newly incorporated joint venture
Zurich, 14 December 2017 — A responsAbility-managed energy company, Norfund and Vineyard have teamed up to incorporate New Africa Power. The new energy joint venture plans to develop a 65 MW portfolio of small-scale run-of-the-river hydropower projects in Zambia.
Zambia is among the least developed countries in the world when it comes to electricity supply: Currently, only 25% of the urban and 3% of the rural population have access to electricity.
The Zambian government is committed to improve energy access for the Zambian population while at the same time ensuring the sustainable supply of affordable electricity to power its economy, especially the mining sector. A recently announced renewable energy feed in tariff (REFIT) programme is designed to help achieve this objective.
A responsAbility-managed energy holding company has teamed up with development finance institution Norfund and investment company Vineyard to create a new joint venture company, New Africa Power. Jointly managed by responsAbility and South Africa-based REH Project Development, the company plans to exploit the country’s significant untapped hydropower resources by developing a 65 MW portfolio of small-scale run-of-the-river hydropower projects in Zambia.
New Africa Power has committed USD 4.6 million for the feasibility phase of the development, which is expected to be completed by the 3rd quarter of 2018. New Power Africa has already finalized an intensive site reconnaissance, hydrological assessments as well as initial socio and environmental impact assessments.
In a next step, New Power Africa will develop the projects for submission under the renewable energy feed in tariff programme, thereby ensuring alignment with the government’s economic and social development programmes.
The development activities will be implemented by contracted specialist service providers including REH Project Development (South Africa) and the responsAbility-managed energy holding as project managers and Aurecon Consulting Engineers as technical consultants. Construction on the first power plant is expected to start from 2020.
Kjell Roland, CEO at Norfund, said: “Increased access to energy is crucial for development and poverty reduction. Investing in clean energy projects is therefore of high priority for Norfund. Our experience is that successful clean energy projects are depended on well-prepared and agreed private public partnership. We appreciate that this is now in place for this project on hydropower generation in Zambia.”
Speaking on behalf of responsAbility, Joseph Nganga, Executive Director of the responsAbility-managed renewable energy company for Africa, explained: “This is a perfect example of how we are working closely with experienced developers such as REH and like-minded investors such as Norfund to support governments in Africa to meet their countries’ energy needs.”
responsAbility Investments AG
Ulli Janett, Media Relations
+41 44 403 06 33
ulli.janett [at] responsAbility.com
Inge Stolen, Senior Investment Manager, Clean Energy
Inge.Stolen [at] norfund.no
Eben de Vos, Project Manager, Zambia
eben [at] rehgroup.co.za
About responsAbility Investments AG (responsAbility.com)
responsAbility Investments AG is a leading asset manager in the field of development investments that offers professionally managed investment solutions to private, institutional and public investors. The company supplies debt and equity financing to firms in emerging economies and developing countries. responsAbility currently has USD 3.3 billion of assets under management invested in over 550 companies in 97 countries.
The responsAbility-managed energy company for Africa aims to increase the renewable energy supply in sub-Saharan Africa at reasonable tariffs. The company invests in and co-develops small and medium sized renewable energy projects up to 50 MW at various stages of the project life cycle with particular focus on the development stage.
About Norfund (www.norfund.no)
The Norwegian Fund for Investment in Developing Countries (Norfund) is Norway’s Development Finance Institution and has a mandate to support the building of sustainable businesses in developing countries and thereby contribute to economic and social development.
Norfund is a strategic minority investor that is wholly owned and funded by the Norwegian Government. It has a committed portfolio of USD 2.1 billion. Clean energy is one of the three investment sectors with its geographical focus primarily in sub-Saharan Africa.
Vineyard is a special purpose vehicle (SPV), investment holding company registered in the Isle of Man. Vineyard will invest in the development and ownership of energy projects in sub Sahara Africa.