Lekela Power, a joint venture company between Mainstream Renewable Power and investment firm Actis, has announced its third renewable energy project in Egypt.
Lekela Power will set up a 250 MW wind energy project in Egypt which takes the company’s total project pipeline in Africa to 1.1 GW. Lekela Power was set up as a joint venture between developer Mainstream Renewable Power and investment fund Actis in 2015 in a $1.9 billion deal. Mainstream holds 40% in the joint venture while the balance 60% stake is owned by Actis.
Lekela Power signed a memorandum of understanding to develop the project with the Egyptian Electricity Transmission Company following a meeting with Egyptian President Abdel Fattah Al-Sisi.
The new wind energy project will be set up in the Gulf of Suez region. Lekela Power will develop, own, and operate the project, which is expected to require a total investment of $350 million. The company will also set up a 50 MW wind energy projects in Aswan, and an additional 50 MW solar power project will also be set up.
A substantial portion of the 1.1 GW capacity under construction in various countries in Africa is expected to be commissioned next year, with projects expected to be commissioned in South Africa, Egypt, and Ghana. In South Africa, Lekela Power will develop five wind energy projects with a cumulative capacity of 610 MW. Three of these projects are already under construction, while work on the other two is expected to be begin in 2016. Construction on a 150 MW wind energy project in Ghana will also begin in 2016.