This article is published in association with Africa Private Equity News, a one-stop source for industry-related information. Stay up to date by downloading the free Africa Private Equity News app: Android | iOS | Scan QR code from desktop. Subscribe to the monthly newsletter here.

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According to the World Economic Forum, as of mid-2017, 62.5% of the population of sub-Saharan Africa did not have access to reliable grid-connected electricity. This can largely be attributed to limited power infrastructure in many countries, which is further exacerbated by dispersed rural settlements.

However, the region boasts an abundance of geothermal, hydro, wind and solar resources, which, if harnessed, can go a long way in addressing the power deficit. The African Development Bank (AfDB) states that Africa has the potential to generate an additional 10 terawatts of solar energy, 1,300 gigawatts (GW) of wind power, and 15 GW of geothermal potential. This presents an immense opportunity for energy investors.

And firms seem to be taking notice, with a significant number of renewable energy deals announced during December. Here are some of the highlights.

Kipeto Energy – Kenya’s second-largest wind farm, which will supply 100 megawatts (MW) of clean energy to the national grid – reached financial close following the acquisition by growth markets investor Actis of the respective equity interests of the International Finance Corporation (IFC) and African Infrastructure Investment Managers. The project is now funded by equity from Actis (88%) and Kenyan company Craftskills Wind Energy International (12%) alongside senior debt from the Overseas Private Investment Corporation (OPIC).

More news surrounding the Nachtigal hydropower project in Cameroon were also announced in December. Africa50, the pan-African infrastructure investment platform, revealed it acquired a 15% stake in the company that runs the project, Nachtigal Hydro Power Company (NHPC). It joined the existing shareholders, which are the Republic of Cameroon (15%), Electricité de France (40%), Paris-based investment fund STOA (10%), and the IFC (20%). The plant is projected to cost €1.2bn ($1.36bn).

Off-grid solar technology provider d.light announced it had raised $41m in equity financing from a consortium led by Inspired Evolution, an Africa-focused investment firm that specialises in the energy sector. The consortium includes partners like Dutch development bank FMO, as well as government-sponsored investment funds Swedfund and Norfund. This latest funding brings the total amount of equity and debt that d.light has raised in the past two years to over $100m.

In another off-grid-electricity transaction, FMO and Symbiotics announced a $32.5m facility for ZOLA Electric to finance the company’s growth in Tanzania over the next five years.

Furthermore, in South Africa, it was reported that the Karoshoek Solar One project, situated close to the town of Upington, had gone live, adding an additional 100 MW of clean power to the national grid. The project was co-developed by Emvelo Holdings, the Industrial Development Corporation (IDC) and Cobra (a Spanish company responsible for the construction of the plant) which hold 15%, 20% and 20% shareholding in the project, respectively. The remaining shareholders include Community Trust (15%), South African investment manager Public Investment Corporation (PIC) (20%), and Cape Town-based Hosken Consolidated Investment (10%).

This article is published in association with Africa Private Equity News, a one-stop source for industry-related information. Stay up to date by downloading the free Africa Private Equity News app: Android | iOS | Scan QR code from desktop. Subscribe to the monthly newsletter here.