French utility ENGIE and investment company Meridiam have signed an agreement with Actis to fully acquire South Africa-based BTE Renewables for $1bn.
BTE Renewables is a developer, owner, and operator of renewable assets on the African continent, with an operating presence in South Africa and Kenya.
Actis established the renewable energy platform in 2017 with the acquisition of the Kipeto wind project in Kenya, which was then under the development stage.
In 2019, the platform was expanded with the acquisition of South Africa-focused BioTherm Energy and rebranded as BTE Renewables (BTE).
BTE currently has six operating projects totalling around 500MW in generating capacity, five in South Africa and one in Kenya.
Meridiam partner and deputy CEO Mathieu Peller said: “This transaction reinforces our footprint both in Kenya and more globally in Africa where we invested more than €5bn to date.
“Kipeto, our first wind farm asset on the continent, will greatly complement our existing renewable portfolio which already comprises solar, hydro, biomass and geothermal assets.
“Taking also into account the pipeline assets, this project will double our total renewable generation capacity in Africa and bring it to over 500MW.”
With the acquisition, ENGIE will benefit from an additional 340MW of renewable operating assets to its portfolio of more than 3GW advanced development projects.
The French company said that the acquisition will further strengthen its presence in South Africa and capitalise on the Group’s industrial value in the country.
In South Africa, it already operates 1.3GW of assets, including 200MW solar-thermal power plants (CSP), 21MW solar PV assets and 94MW of onshore wind assets.
Meridiam will acquire the 100MW Kipeto Wind Farm, located about 70km south of Nairobi, and the 50MW Siruai greenfield wind project, located adjacent to the current Kipeto site.
The Siruai greenfield wind project, which is currently under development, is expected to become Kenya’s first battery storage facility.
The acquisition is expected to be completed by the fourth quarter of 2023, subject to certain authorisations including merger control clearance from relevant competition authorities.
ENGIE renewables, energy management and nuclear senior executive vice president Paulo Almirante said: “The acquisition of BTE is bringing to ENGIE high-quality wind and solar assets and a strong project pipeline.
“We are looking forward to welcoming the BTE team within the Group. The integration of BTE will also contribute to South Africa’s ambitious energy plan and renewable targets. With this integration, ENGIE is pursuing its development outside Europe and the Americas.”
