Sierra Leone Telegraph: 28 February 2021:
Leading off-grid utilities provider, Winch Energy, has completed the funding for solar mini grid projects in 49 villages across Uganda and Sierra Leone through the creation of a new platform, Winch Energy IPP Holdings Limited (“WIPP”).
The deal represents the largest mini grid financing portfolio to date, bringing together several major players in the off-grid space and was finalised on 29th January 2021. Winch Energy is owned by Total Eren, Itochu Corporation, Al Gihaz Holdings and Winch Partners.
The investment comes from Winch Energy Limited in partnership with NEoT Offgrid Africa – a platform established by Meridiam, EDF and Mitsubishi Corporation.
NEoT Offgrid Africa supports and accelerates Africa’s energy transition and already invested more than €30 million in the electrification of 25,000 homes and businesses in Ivory Coast and Nigeria.
SunFunder is also providing an additional $2m construction loan to the project. The partnership is in advanced discussions with two international development finance institutions to bring debt into the project, which has been agreed in principle.
Subsidies are provided by the Foreign, Commonwealth & Development Office (FCDO, formerly DFID) for the projects in Sierra Leone and by the German Development Ministry (BMZ) and European Union in support of the Ugandan projects.
The project development is also supported by GIZ in Uganda and the United Nations Office for Project Services (UNOPS) in Sierra Leone.
The mini grids will be built with Winch Energy’s own proprietary technology, the Remote Power Unit (RPU), and will be operational within the next 12 months, providing remote communities with affordable, clean energy and access to essential services.
This first $16 million award-winning project will have a capacity of connecting more than 6,500 customers. The sites, located in the Lamwo district of Uganda and in Tonkolili, Koinadugu and Bombali districts of Sierra Leone will supply clean energy to over 60,000 people for the first time.
A further 6,000 portable batteries will also be installed through the project to provide people outside of the mini grid catchment area with clean electricity. In addition to energy access, the project will also provide internet to the communities through partnerships with telecom operators in both countries.
The developments will open up a pipeline of additional projects in both countries, further securing Winch Energy’s position in the off-grid market.
Together, the Winch Energy and NEoT investment vehicle, Winch IPP Holdings Limited, expects to expand operations into more countries, with ambitions to reach some $100 Million of operating projects in the next 24 months.
Main contractors to the transaction are Winch Energy Italy SRL and Sagemcom. Legal advisers to the transaction were Fieldfisher and Clarkson, Wright and Jakes, acting on behalf of Winch Energy and WIPP and August Debouzy representing NEoT.
Winch Energy already operates 13 sites in northern Sierra Leone, which were completed as part of an earlier phase of this project. Winch also powers communities in Benin, Mauritania and Angola, with a project to supply power to 20,000 residents in Bunjako on Uganda’s Lake Victoria expected to be fully operational by March 2021. The latest projects will support the company to deliver sustainable, reliable energy to all.
Nicholas Wrigley, CEO of Winch Energy Limited, comments: “We are thrilled to have achieved the funding for our projects in Sierra Leone and Uganda through the creation of this new platform, Winch Energy IPP Holdings, with our partners NEoT Africa. This platform will enable us to rapidly scale up operations in Africa. Not only does this deal pave the future for Winch Energy as a leader in large-scale off-grid renewables, it also stimulates economic growth and improves education and healthcare provision in remote communities.”
Frédéric Pfister, Director of NEoT Offgrid Africa (NOA), says: “NEoT Off Grid Africa is really proud to have set up this first of a kind financing scheme, together with its financial partners and industrial key players as Winch Energy and Sagemcom. Financing needs for energy access in Africa are huge, but most of the times very challenging for private investors. This deal will surely position NOA as a key player for financing mini grids and other off grid solutions – such as solar home systems (SHS) and commercial & industry installations – to provide much more energy access for people and industries in Africa.”
About Winch Energy:
Winch Energy is a global, off-grid renewable energy developer, operator and technology developer and integrator. Through its Remote Power Unit, the “RPU”, it provides a three utility solution for the 840 million people around the world without access to electricity, internet or water. Winch Energy currently operates in five countries across Africa, with two key projects currently under construction in Sierra Leone and Uganda which will provide over 6,600 connections, benefiting over 150,000 people. Last year, Winch Energy provided 200,000 new connections, expecting to benefit over 1.5 million people.
Formed in 2008 by Nicholas Wrigley, who remains a significant shareholder, Winch Energy is owned by Winch Partners, Total Eren S.A., Al Gihaz Holding and Itochu Europe PLC.
About NEoT Africa
NEoT Offgrid Africa (NOA) is an investment platform designed to support Africa’s energy transition by addressing the issues of energy access and zero-emission mobility. Founded and owned by Meridiam (as majority shareholder), EDF and Mitsubishi Corporation, NOA provides its partners with innovative financing solutions to remove barriers to upstream investment, enabling deployment of new technologies and commercial risk management.
NOA is managed by NEoT Capital, which brings together a team experienced in financial structuring and clean energy solutions, and relies on international strategic partners to provide the financial and operational support needed to develop a carbon-free world.