Back to the complete issue
Monday, 24 June 2019

China’s Silk Road Fund buys into Egypt renewable energy scene through acquisition of large Acwa Power stake

M&A WATCH- China’s Silk Road Fund buys into Egypt renewable energy scene through acquisition of large Acwa Power stake: China’s state-owned Silk Road Fund has acquired a 49% stake in Saudi utility developer Acwa Power’s renewable energy unit, Arabian Business reports. No details of the investment have been released. The renewable energy platform, Acwa Power RenewCo, will own Acwa Power’s solar power and wind assets in Egypt, the UAE, South Africa, Jordan and Morocco, which have an aggregate generation capacity of nearly 1.7 GW, according to a press release. Acwa Power and the Chinese government investment fund have previously co-invested in two projects in the UAE.

Acwa is an emerging power in Egypt’s renewable energy sector: Late last year, Acwa and Hassan Allam signed a power purchase agreement with the Egyptian Electricity Transmission Company for a 2.3 GW, USD 2.3 bn power plant in Luxor, which is expected to operate at full capacity by 2023. Acwa also recently submitted the best-priced offer in the EETC’s tender to build a 200 MW solar power plant in Kom Ombo.

Key market: Acwa Power’s CEO Paddy Padmanathan has previously stated that Egypt is a core market for renewable energy sector growth and we noted in March that the company plans to invest USD 3 bn in Egypt this year, with funds directed to energy projects in Luxor and the Benban solar power complex in Aswan.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.