Globeleq Partners with Norfund for Major Hydro Project in Africa
Globeleq's Strategic Move in Renewable Energy
Globeleq, an established leader in the independent power sector across Africa, has made a significant advancement by securing a share purchase agreement with Norfund. This agreement involves acquiring a 51% equity stake in Lunsemfwa Hydro Power Company (LHPC), a key player in Zambia’s energy market. The company operates two hydroelectric power plants, boasting a combined output of 56 megawatts (MW), and is currently developing a solar photovoltaic (PV) project expected to yield 20 MW.
Details of the Acquisition
The Lunsemfwa Hydro Power Company is strategically located in Zambia, where it sells electricity primarily to the Zambia Electricity Supply Corporation via a formal power purchase agreement. In addition to this partnership, LHPC caters to a variety of private customers within the region, including Copperbelt Energy Corporation and Jubilee Metals. This agreement signifies a pivotal step for Globeleq as it enhances the diversification of its renewable energy portfolio, which now includes hydropower alongside its existing solar, wind, battery energy storage (BESS), and geothermal projects.
Expanding Energy Solutions in Zambia
Globeleq's entry into the Zambian market underscores its commitment to addressing the energy needs of public and private consumers alike. The company aims to leverage its experience and resources to provide innovative energy solutions that support Zambia's broader energy objectives. Remarkably, this acquisition marks Globeleq's inaugural investment in hydropower across the African continent, reinforcing its strategic growth. The enterprise plans to develop an expansive portfolio of more than 400 MW, combining solar, wind, BESS, and hybrid technologies.
Statements from Company Leaders
Globeleq's CEO, Jonathan Hoffman, expressed enthusiasm about this opportunity, stating, "By entering the Zambian market, we are set to merge LHPC's established operations with our expertise in Africa. This collaboration will foster enhanced energy access and stimulate the local economy." He emphasized the potential for creating tailored energy solutions that cater to the unique needs of the region.
Investment Director at Norfund, Øystein Øyehaug, also shared his perspective on the partnership. He noted, "Our goal was to align with an investor that possesses the capability, operational performance ideals, and vision to unlock the growth potential of LHPC. With over two decades of collective experience in Africa, we believe that Globeleq is perfectly positioned to lead LHPC into its next phase of growth."
About Globeleq
Globeleq stands out as a premier developer, owner, and operator of electricity generation facilities in Africa. As a joint venture company owned by British International Investment and Norfund, it has made considerable strides since its inception in 2002, building a diverse array of independent power plants. To date, Globeleq's portfolio showcases a robust generation capacity of 1,794 MW across 17 locations in seven countries, while it simultaneously advances an additional 485 MW currently under construction.
About Norfund
Norfund serves as the Norwegian Investment Fund dedicated to fostering sustainable economic growth in developing countries. With a mission to create jobs and uplift living standards, Norfund strategically invests in businesses that promote sustainable development. Its extensive portfolio, valued at approximately USD 3.8 billion, spans multiple regions, including Sub-Saharan Africa, Southeast Asia, and Latin America. Moreover, Norfund manages initiatives targeting significant reductions in greenhouse gas emissions through investments in renewable energy—all contributing to a cleaner and more sustainable future.
Frequently Asked Questions
What is the significance of Globeleq's acquisition of LHPC?
The acquisition enhances Globeleq's renewable energy portfolio and diversifies its energy offerings in Zambia's market.
What types of power plants does LHPC operate?
LHPC operates two hydroelectric power plants totaling 56 MW and is constructing a 20 MW solar PV project.
How does the acquisition align with Globeleq's growth strategy?
This acquisition is pivotal for implementing Globeleq's strategy to expand its reach in the renewable energy sector across Africa.
Who are Norfund and what role do they play in this agreement?
Norfund is a Norwegian development institution that invests in sustainable private sector growth, partnering with Globeleq to enhance LHPC's operational capacity.
When is the expected completion date for this transaction?
The transaction is slated for completion in the second half of 2025.
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