The Italian Enel Group has signed a deal with the Qatar Investment Authority (QIA) to implement joint projects to finance, establish and operate green energy projects in sub-Saharan Africa.
The financial details of the deal were not disclosed, however.
“We will work together to accelerate the creation of an extensive green energy footprint in Sub-Saharan Africa,” Enel CEO Francesco Starace said.
The QIA will buy 50% of Enel’s share of projects in operation or under construction in South Africa and Zambia with a capacity of about 800 megawatts.
Enel green energy will develop new projects in the region, while the joint venture will handle financing and construction.
Chaired by the Emir Tamim bin Hamad bin Khalifa Al Thani, Qatar established the fund in 2005 to manage oil and natural gas surpluses. Moreover, QIA is one of the largest sovereign wealth funds in the world. It has stopped investing in fossil fuel companies, before paying increasing attention to developing green technologies.
QIA CEO Mansoor Al-Mahmoud, said, “this investment represents an excellent opportunity to develop and grow a leading renewable energy platform in the region”.
Enel Group is the largest European utility company and one of the largest clean energy production groups in the world.
Enel also intends to spend 160 billion euros over the next ten years to become a green giant. The company also aims to completely eliminate carbon emissions by 2050.
At the same time, the company is seeking to attract 30 billion euros from parties outside the group, to reach total spending of 190 billion euros. It aspires to boost profits and reduce its carbon emissions by 80% by 2030.
Enel CEO said they “intend to consolidate our position as a giant in the renewable energy sector”.
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