Fortis Green Renewables and AXIAN Energy have acquired stakes in Gigawatt Global Rwanda Ltd, a solar farm at Agahozo-Shalom Youth Village, with Fortis Green holding 51% and AXIAN Energy’s NEA Rwanda Ltd owning 49%. The plant which has a capacity of 8.5 MW DC has been operational since 2014 and serves around 140,000 people.
Expansion of Renewable Energy Resources
In a significant move for the renewable energy sector in Africa, Fortis Green Renewables Investment Management and AXIAN Energy have announced their acquisition of stakes in Gigawatt Global Rwanda Ltd. The notable solar power plant is located at the Agahozo-Shalom Youth Village in Rwamagana, Cabo Verde.
The acquisition was finalised on July 30, 2024, marking Fortis Green's acquisition of a 51% stake and NEA Rwanda Ltd, (AXIAN Energy's subsidiary) taking a 49% share in the solar power facility. This strategic investment highlights a notable development in the expansion of renewable energy resources in the region.
The Gigawatt Global Rwanda solar plant which has been operational since 2014 boasts a capacity of 8.5 MW DC and serves approximately 140,000 beneficiaries. The facility, which includes over 28,000 solar panels spread across a 50-acre site has been a cornerstone in improving access to clean energy in Rwanda. It operates under a 25-year power purchase agreement with the Rwanda Energy Group and is supported by project debt from FMO and the Emerging Africa Infrastructure Fund (EAIF).
The transaction was preceded by share purchase agreements signed in late 2023 and early 2024, with Hogan Lovells providing legal counsel to the buyers. Fortis Green Renewables - through its Green Fund I - and AXIAN Energy are making substantial investments in expanding their renewable energy portfolios. The acquisition not only enhances Fortis Green's Green Fund I but also marks AXIAN Energy’s inaugural venture into the Rwandan market.
Solar Acquisition: Result of Effective Partnership
Benito Grimaudo, Managing Director of Fortis Green Renewables Investment Management expressed enthusiasm about the acquisition, noting, “We are pleased to add Gigawatt Rwanda to the Green Fund I portfolio, our second operational asset in the Rwandan market. Fortis Green Renewables is committed to developing and operating clean and renewable energy for the African continent, and this asset fits perfectly into our vision.”
Jonathan Shafer, another Managing Director at Fortis Green emphasized the importance of strong partnerships, stating, “Great partners are the key to our success and we could not be more pleased to be entering into this transaction with the team at AXIAN Energy. Additionally, we are honoured to be partnering with the Agahozo-Shalom Youth Village – an organisation doing incredible work with the most vulnerable children in Rwanda.”
AXIAN Energy’s CEO, Benjamin Memmi also highlighted the strategic significance of the acquisition. “The acquisition of shares in the Rwamagana solar farm marks our first operation in the Rwandan market. We are thrilled about this collaboration with our local partner Fortis Green Renewables, with whom we share a common ambition: to provide sustainable and accessible energy solutions that improve the daily lives of local communities,” said Memmi.
Impact of the Solar Farm
The Gigawatt Global Rwanda solar project is a pioneering effort in the region, being the first grid-scale solar farm to connect to the local power grid. The plant's successful operation demonstrates the potential for renewable energy to address energy needs in underserved regions. It serves a vital role in providing reliable power to local communities and supports the Rwandan government's goals for sustainable energy development.
Gigawatt Global Rwanda: The region's first grid-scale solar farm, powering local communities and supporting sustainable energy goals.
The solar farm is located approximately 60 km east of Kigali, on land owned by the Agahozo-Shalom Youth Village (ASYV). This residential community which was established as a sanctuary for youth orphaned during and after the 1994 Genocide Against the Tutsi now serves as a haven for Rwanda’s most vulnerable youth. The village offers education, medical and mental health services, extracurricular activities, and a nurturing family environment. The presence of the solar plant significantly contributes to the village's sustainability and operational efficiency.
Fortis Green Renewables and AXIAN Energy's acquisition of Gigawatt Global Rwanda Ltd represents a crucial advancement in the renewable energy landscape of East Africa. By expanding their investments in solar power, both firms are contributing to the broader goal of increasing energy access and promoting sustainable development across the continent.
Looking ahead, the two companies plan to leverage their expertise to enhance the capacity and efficiency of the solar plant; ensuring continued benefits for the local community and reinforcing their commitment to renewable energy. With the acquisition completed, Fortis Green and AXIAN Energy are set to explore further opportunities in the renewable energy sector; aiming to drive positive change and support the transition to cleaner energy sources in Africa.