FMO and Metier mull setting up West African renewable energy IPP

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Dutch development bank FMO and South African private equity firm Metier are potentially teaming up to establish a new renewable energy IPP focused on opportunities in West Africa. The new entity, provisionally named Africa REN AssetCo, will initially own stakes in three projects, as well as back future renewable energy developments in the region.

FMO is mulling an investment totaling €12.9 million (or approximately $16.5 million) into Africa REN, €2 million of which will be earmarked for future developments. The development bank will be co-investing equity in the new entity alongside Metier Sustainable Capital II, one of FMO’s investee funds. With this capital, Africa REN will hold 60% of the equity rights in Senergy 2, an operational Solar PV plant in Senegal, 100% of Kodeni Solar, a Solar PV plant in Burkino Faso which will start construction this year, and 90% of Walo Storage, a solar-powered storage facility in Senegal which will also begin construction this year.

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