Oluwole Eweje, managing director of WATT Renewable Corporation. (Image source: WATT)
AFRIGREEN, a leading investment fund focused on sustainable energy solutions, has entered into a debt facility with several project companies owned by Watt Renewable Corporation (WATT), a provider of hybrid solar solutions in Nigeria
The US$15mn deb facility will finance hybrid solar power plants to be built and operated by WATT. These will serve commercial and industrial (C&I) clients in Nigeria, with a particular focus on those within the telecommunication and financial services sectors. In doing so, WATT is hoping to reduce diesel consumption and CO2 emissions for its clients, enabling them to achieve substantial energy cost savings and reduce their environmental impact.
AFRIGREEN, which is backed by prominent institutions including the European Investment Bank (EIB), the International Finance Corporation (IFC), BIO, Proparco, Société Générale, and BNP Paribas, is offering a local currency facility that matches the payment structure of the power purchase agreements. This will mitigate the currency risk for WATT if the Nigerian Naira devalues.
“We are delighted to support WATT in rolling out hundreds of hybrid sites across the country,” remarked Alexandre Gilles, managing director of AFRIGREEN’s fund advisor. “This represents another key transaction for AFRIGREEN in Nigeria. The combination of high energy prices, good solar irradiation, and strong demand from industrial and commercial energy users makes this market particularly attractive for companies like WATT. By leveraging these favourable market conditions alongside WATT’s exceptional operational performance and a well-structured financing solution, we are setting the stage for a strong and lasting business partnership.”
The new funding will support WATT in its ambition to roll-out hundreds of hybrid solar power sites nationwide to meet the growing energy demands of C&I industrial clients.
“Indeed, we are thrilled to partner with AFRIGREEN on this transformative journey to expand reliable and sustainable energy solutions across Africa,” added Oluwole Eweje, managing director of WATT Renewable Corporation. “With this support, it enables us to accelerate our shared mission of providing hybrid solar power to businesses, reducing carbon emissions, and supporting economic growth while enhancing energy security for our clients.”
According to Sherisse Alexander of WATT Renewables, solar and storage present a ‘win-win’ for Nigeria as it seeks to manage its forthcoming data centre market explosion. Click here to read the opinion piece in full.
